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The Street
The Street
Business
Daniel Kline

Chipotle Has New Chicken (Why That's a Really Big Deal)

Chipotle (CMG) built its menu around stability. Sure, the chain has tried new meats and played with variations of its queso -- that move hasn't gone all that well -- but its core offerings haven't changed.

Think of it this way: You go to fast-food or, in this case, fast-casual restaurants at least partly because of familiarity. It might be fun to try a new limited-time offer, but when you visit a Chipotle, you want that burrito, taco, or bowl that makes you feel warm on the inside.

There's beauty and joy in knowing exactly what you're getting. And history has shown us (we're looking at you, New Coke (KO)) that making changes to beloved products comes with risks. That's a risk Chipotle seems willing to take as it's rolling out a huge change to one of its core menu items for the first time in its nearly 30-year history.

Chipotle

What Is Chipotle Doing? 

Chipotle has become more innovative since Brian Niccol took over as chief executive, but the company still moves very methodically. It has a tiered testing system that tries new items in a few stores before rolling them out more broadly.

That led to adding chorizo and brisket to its menu for a limited time and trying plant-based chorizo. It's not a foolproof system, as the chain struggles with the queso show, but it has been largely well-received and successful in varying the menu a bit.

Now, the company has used its testing process to do something more than simply bring on a new limited-time offer. Chipotle has decided to change its chicken. That sounds really scary, but it's important to note that its classic chicken isn't going anywhere. Its new take on poultry will be on the menu alongside its classic chicken.

"Chipotle's first chicken menu innovation in its 29-year history, Pollo asado's elevated flavor profile offers a new take on your go-to order," the company said in a news release.

"Grilled fresh and prepared daily in small batches, responsibly raised chicken is tumbled in a spice blend before being seared on the plancha. Pollo asado is then hand-chopped into tender, juicy bites and is brought to life with a bright marinade, fresh squeezed lime, and cilantro," 

Why a New Chipotle Chicken?

Chipotle sells a lot of chicken.

"Chicken is easily our most popular protein, with many of our most loyal Chipotle customers ordering it the majority of the time," Chief Marketing Officer Chris Brandt said in the company statement. 

"We're thrilled to introduce fans to another flavor of chicken that brings a whole new dimension to any Chipotle order and will certainly be a crowd-pleaser."

This move does not come without risks. But the company makes success much more likely with its testing process.

"Chipotle tested pollo asado in select restaurants in Sacramento and Cincinnati starting in November 2021 for a limited time," according to the company.

"Chipotle utilizes its stage-gate process to test, listen, learn, and iterate on guest feedback before deciding on a national launch strategy for new menu innovations.

"Customer feedback and sales from the pollo asado test were on par with the test market results of Smoked Brisket, Chipotle's bestselling menu innovation in the company's recent history."

That means the new chicken should be popular, but stage-gate testing can't tell Chipotle whether customers will embrace change. Better does not always override familiar and that's the risk the company has opted to take here. 

It's not that big a risk because while people may not embrace the new chicken, the classic version will still be on the menu. Realistically, that means that Chipotle customers might have one less-than-ideal experience rather than a potential New Coke experience.

To encourage customers to try the new chicken, Chipotle is offering $0 delivery fees on all pollo asado orders placed through the Chipotle app and Chipotle.com from March 14 through March 20 in the U.S.

 

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