After losing some of its momentum last year, Chipotle is trying a little bit of everything from crispy chicken to family meal deals, as it looks for ways to bring customers back.
Chipotle is testing five initiatives under its Recipe for Growth plan after several quarters of softer sales, with weaker demand, especially among younger and lower-income diners, seen as a major pressure point across the industry
The strategy is designed to reignite growth by focusing on menu innovation, restaurant expansion, loyalty programs and new revenue opportunities.
Some pieces of the plan are already underway. Chipotle recently relaunched its rewards program and brought back two fan-favorite limited-time menu items, Chicken Al Pastor and Chipotle Honey Chicken, both of which helped drive customer interest and traffic.
Now, the company is turning its attention to a new round of tests aimed at boosting sales and attracting diners. Beyond menu additions, Chipotle is experimenting with promotions, catering initiatives and operational changes that could open up new revenue streams and encourage customers to visit more often.
1. Testing a new crispy chicken protein
In May, Chipotle tested a limited-time crispy chicken offering in select locations, which will be available in burritos, bowls, tacos and salads. The chain described the chicken as “tender, light and crispy,” adding that it was made without gluten, antibiotics or artificial ingredients, according to USA Today.
The company is now evaluating customer response and operational performance to decide whether to expand the test further under its stage-gate development process, Chipotle officials told Restaurant Dive earlier this month.
Chipotle is prioritizing menu innovation this year by increasing its limited-time offerings to four per year, including recent returns of Chicken Al Pastor in the first quarter and Chipotle Honey Chicken in April, which helped drive additional customer visits, according to Restaurant Dive.
2. Experimenting with a 'Happy Hour'
Chipotle also recently tested a limited “happier hour” promotion featuring $2.50 tacos from 2 to 5 p.m. The “Power Up at Chipotle” trial ran in Kansas City, Orlando and Tampa and included extra charges for premium add-ons, like guacamole, queso and additional protein.
Although the test has ended, Chipotle is reviewing the results as it considers whether similar promotions could help drive incremental traffic from price-conscious consumers, company officials told Restaurant Dive.
3. Remodeling aging restaurants
Chipotle, which hasn’t had a remodel program in over 30 years, is also testing multiple upgrade packages at about 20 locations across three markets, CEO Scott Boatwright said during Bernstein’s 42nd Annual Strategic Decisions Conference in early June.
The chain is experimenting with packages priced at $200,000, $400,000 and $600,000 for covering improvements to interiors, exteriors and kitchen operations, he said.
“I think there’s probably 1,000 to 1,500 restaurants today that are just dated,” Boatwright said.
When he joined Chipotle in 2017, Boatwright focused on basic repairs and upkeep to improve struggling restaurant conditions, including fixing damaged fixtures, updating lighting and addressing deferred maintenance to make dining rooms brighter and more inviting.
“I think that worked well for about 10 years,” Boatwright said. “And I think we’ve gotten to a point now where some of our assets, no matter how much we reinvest in maintenance costs or maintenance capital, just need a facelift.”
4. Expanding its catering business
Chipotle began testing a third-party catering platform in 2025 in Chicago before expanding it to Boston and now Phoenix, with Boatwright saying it helps balance orders and reduce pressure on restaurants while boosting sales. The company hopes to scale the program systemwide next year if testing continues to go well.
Managers have long requested growth in the catering space because it gives a “a nice uplift in total sales for revenue for the business, but also is the most efficient labor utilization, and probably the most margin accretive platform that we have in the business,” he said.
However, scaling it has been a challenge for the company, especially since catering currently makes up only about 1.5 percent of sales, well below the 10 percent to 15 percent seen at many competitors, according to Restaurant Dive.
“I think our food travels better. I think people love the Chipotle experience when it’s right from a catering perspective,” Boatwright said. “And we need to make sure we can deliver on the expectations for the consumer, deliver on our brand promise and not fracture lunch and dinner in a Chipotle restaurant.”
5. Rebranding family and group meals
About a year after launching its Build-Your-Own-Chipotle family meal option, sales have risen roughly 1 percent, according to Restaurant Dive. However, Boatwright said awareness remains low, as the offering's name may be limiting its visibility at group occasions.
“I’ve contested from day 1; it should be called family meals, but we had to get really clever about it,” Boatwright said. “So we call it Build-Your-Own Chipotle.”
Testing a lower-priced “family meals” label in two markets lifted sales by about 10 percent, Boatwright said. Chipotle also found that discounting the initial $58 price point helped drive stronger early demand compared to the original launch price.
“$50 really moves the needle. It’s still margin accretive. It’s proven to be highly incremental. And so we feel comfortable getting a sharper price point, naming it correctly and really promoting it effectively through social channels and digitally that it will have a meaningful uplift on the business,” Boatwright said.
