Chipotle, widely revered for its Mexican-inspired burrito bowls and burritos, took a significant hit in 2015 during the E. coli outbreaks, losing thousands of customers and over 30 percent of sales. In the past several months, Chipotle has spent over a million dollars on free burrito promos, trying to win back their lost fans despite the stricter food safety standards.
Now, Chipotle is considering launching a burger chain. CEO of Chipotle Mexican Grill, Steve Ells, recently revealed that the company filed a trademark application for "Better Burger." Chipotle also owns ShopHouse, a Southeast Asian-inspired eatery, and Pizzeria Locale, a pizza chain. However, with Better Burger, Chipotle is looking to get their foot into the door in the casual dining burger industry. This new sister company would likely follow the customizable "Chipotle-style" but would serve burgers instead of burritos.
While the competition in Mexican-inspired restaurants is fairly limited, the competition in burger restaurants is huge. From everything to Five Guys and Shake Shack to Burger King and McDonalds, more restaurants are making burgers and fries part of their menus. Tristano, CEO of Technomic, claimed that the fast-casual burger category grew at nearly 16 last year.
So why is Chipotle going into the dubious burger industry?
Chipotle may be looking to maintain their fresh, antibiotic and GMO-free brand into the average hamburger, offer more in terms of customization, or even offer a wider range of alcoholic beverages. A spokesperson for Chipotle confirmed that they intend to uphold their "fundamental principles," such as, "finding the very best sustainably raised ingredients, prepared and cooked using classical methods in front of the customer, and served in an interactive format." Several ideas have been suggested from drinks like sangrias and margaritas to locally brewed beers. One thing is for sure: in order for Chipotle's new plan to work out, it needs to set itself apart from all its competitors.
Will Chipotle succeed at breaking into the burger business? Maybe... but maybe not. On one hand and before the food poisoning outbreak, people were wild for the personalization aspect of Chipotle's food, and bringing that to the burger industry may give other restaurants a run for their money. However, some people believe that Chipotle should stick to what the company knows best and focus on "nursing the burrito business back to health." Whether Chipotle breaks into the burger industry or not, they should definitely pay attention to one thing: the health standards of their food and protecting their customers.