Every Chipotle customer knows “Guacamole is an extra charge, is that okay?” Many customers say yes, others are annoyed by the whole process of getting the burrito the way they want. To lure back customers and satisfy current ones, guacamole will now be free with any burrito or bowl.
Chips and guacamole will still cost extra but customers are thrilled with free guacamole on their burritos. Suzy Thompson of Denver, Colorado is “super excited” and “definitely going back now.”
“I love guacamole but was always angry it cost an extra $1.80. I always get my bowl with guacamole and it was annoying to hear “it cost extra” from the employe. Like I can’t read the sign. They treat us like idiots.”
The company will lose a little money on every burrito with guacamole but with sales down 30%, the company is hoping to boost sales and this strategy has great potential to succeed.
“It will hurt our profit per burrito sold,” said Chipotle spokesman Joe Marrese. “But our overall sales should see a tremendous boost in volume and that will make up the loss in the extra cost of the free guac.”
The ‘free guac’ strategy will help get the struggling franchise back on track after months of declines sales and stock price after several foodborne illnesses devastated the company and some of its customers.
Several stores were accused of spreading e-coli and the noro virus and Chipotle has had trouble rebounding from the bad publicity. It’s noticeable by going to your local Chipotle.
“When people get sick from eating at your restaurants, it’s bound to have an impact. We have retrained our staff and increased our safety procedures. But the average consumer won’t notice that. They will notice a sign saying ‘Free Guacamole,’” said CEO Steve Ells. “We are back in business, baby.”
The company’s stock hopes to get back to $800 mark that it achieved before the food poisoning scandal nearly a year ago.