Dive Brief:
- Chipotle will bring back its Carne Asada limited-time offering on Thursday, according to a Tuesday press release. The LTO consists of grilled steak topped with lime and cilantro.
- The chain said the protein saw the highest search engine interest among its LTOs last year, and was one of the most searched-for restaurant LTOs in general.
- Carne Asada could help the fast casual giant generate much-needed sales and traffic momentum after its disappointing Q2 results.
Dive Insight:
After posting negative same-store sales growth in Q1, Chipotle announced it would speed up the cadence of its protein LTOs from two to three releases annually to boost traffic and consumer engagement.
In March, the brand launched its Hot Honey Chicken, and executives said in July that the protein was included in about a quarter of all orders for its duration, but it failed to reverse the chain’s same-store sales slump.
According to the press release, this is the fourth time Chipotle has offered the Carne Asada protein. On the brand’s Q2 earnings call, CEO Scott Boatwright said that recurrent LTOs tend to perform better each time.
“Every time we run an LTO, it tends to perform better than it did during its prior launch,” Boatwright told analysts. In a likely reference to Carne Asada, Boatwright said the brand was then testing the fourth iteration of a menu item and added that it had “performed better in test than it did during its first three market launches.”
Carne Asada, then, could prove a tailwind for the chain, which is looking at a variety of operational and equipment changes to improve its fortunes. Chipotle is adding fresh equipment to stores and re-emphasizing catering as a sales channel. Late in August, the chain also added a value-oriented family meal package.
To promote the protein, Chipotle is offering a $0 delivery fee on online Carne Asada delivery orders placed between Sept. 8 and the end of the month. The brand is also offering a buy-one-get-one free deal for consumers who wear a college football jersey on Sept. 15, in an extension of its emphasis on college-aged or college-affiliated consumers, which saw the brand launch a university-themed rewards program last month.
Chipotle tied the LTO to football season in the press release. Many other chains have taken advantage of the start of the college football season and the impending start of the NFL season — on Sept. 4 — to launch LTOs or football-themed deals. Little Caesars, for instance, is running a series of marketing campaigns with major football stars.
