Chipotle's loyalty program, Chipotle Rewards, has been experiencing steady growth, with its membership base of 35 million increasing from approximately 33 million in the previous quarter. This aligns with research that shows 51% of consumers using restaurant loyalty programs, particularly as rising restaurant prices drive diners to seek discounts.
GLOChipotle aims to expand its already substantial base of loyal customers by implementing personalized messaging to enhance engagement. The popular fast-casual chain, with over 3,250 restaurants across five countries, recently discussed its second quarter FY2023 financial results and expressed its intent to scale its targeting capabilities to drive loyalty.
During the call, an executive mentioned that they are already offering some level of personalization by providing order recommendations based on customers’ history with the brand. These efforts extend to creating unique cohorts and customer journeys, all of which contribute to fostering loyalty and boosting sales. The company’s experiments in this area have yielded positive outcomes, prompting them to expand these initiatives to reach a broader consumer base.
Chipotle’s loyalty program, Chipotle Rewards, has been experiencing steady growth, with its membership base of 35 million increasing from approximately 33 million in the previous quarter. This aligns with research that shows 51% of consumers using restaurant loyalty programs, particularly as rising restaurant prices drive diners to seek discounts. The study also found an 86% increase in the share of consumers redeeming discounts on their most recent restaurant meals from March 2022 to February 2023, with the average discount being 24%.
Chipotle has earned a spot in the top 10 mobile ordering apps on the market, according to Provider Ranking Mobile Order-Ahead Apps, a ranking system based on factors such as loyalty program integrations, user engagement, and ordering options. In the quarter under review, digital channels contributed to 38% of food and beverage revenue, slightly down from the previous quarter’s 39% due to growth in in-restaurant sales.
