The Garlic Guajillo Steak has already been off the market for a few weeks when Fortune visits the headquarters of Chipotle Mexican Grill in Newport Beach, Calif. But the so-so performance of the entrée is still nagging at CEO Brian Niccol. “It didn’t go off the way we had thought it would,” Niccol says with a slight shrug.
Chipotle rolls out “LTOs” (limited-time offers) like the steak two or three times a year, hoping they’ll bring in new customers and get existing ones to spend more. Niccol, the author of the burrito chain’s stunning turnaround since he became CEO in 2018, is an LTO mastermind—and until now, he’d had a long winning streak. Chipotle went all out promoting the steak (which gets its name from guajillo chili peppers). It partnered with gaming site Roblox to offer free coupons for the dish in the metaverse and gave early access to members of its huge loyalty program.
