Chipotle shutting up-to 65 underperforming restaurants, as the company intends a turnaround.
An American fast casual restaurants chain – Chipotle Mexican Grill, Inc. reported in the investor call on Wednesday that it is planning to close its 55 to 65 underperforming restaurants, along with half of the shut downs will fall in next month.
The company doesn’t only wants to shut down its locations, but also attempts to rebuild its marketing under Brian Niccol, Chief Executive Officer, according to the company’s executive statement on Wednesday investor call, while number of questions remained unanswered regarding what comes under the the new leadership.
During the Wednesday’s investor call, Chipotle CEO Brian Niccol said that, “Our vision at Chipotle is to win today and cultivate a better future. We were not sufficiently results focused which made us reactive and hampered execution. I found skills gaps in many areas and insufficient data for decision making that have held us back from reaching our potential.”
The recently announced closures have involved five among rest of seven locations of the fast casual pizza chain – Pizzeria Locale. The company has shut up the only location of its ‘better burger concept’ – Tasty Made, in May. However, it closed all the 15 locations of the Southeast Asian chain – ShopHouse Kitchen, in March 2017.
There was no validated menu innovation pipeline, a general lack of customer understanding, and no real process for scaling and commercializing innovation,” Niccol added. “More than half of Chipotle customers aren’t even aware that you can order ahead for pickup. While the app experience that was rolled out late last year is best-in class, in many of our restaurants, it is unclear to our customers where to pick up that order.”