Chipotle’s latest delivery push is a one-stop shop for customers. The fast casual announced August 28 that’s it’s launching direct delivery powered through DoorDash, which allows guests to access the service without ever leaving Chipotle’s app or website. And to celebrate the move, delivery orders of $10 or more placed on either platform are free for a limited time.
"Fans have long been requesting Chipotle delivery, and as part of our commitment to make it easy for our customers to get the delicious food they love when, where and how they want it, we're rolling out our own delivery service powered through DoorDash as the last mile delivery partner," said Curt Garner, chief digital and information officer, in a statement. "We're proud to be among the first fast casual chains to offer this delivery service and are excited to kick it off with this special offer for our customers."
One of the key features, Chipotle said, is the ability to customize delivery purchases similar to order-ahead ones. The brand said it evaluated numerous delivery partners before deciding to expand its relationship with DoorDash. The service is now available in all 70 markets at the more than 1,800 Chipotle locations DoorDash currently serves. Chipotle first announced it was expanding delivery through DoorDash in April, making the platform available at more than 1,500 restaurants. But this was in the typical DoorDash sense, not the direct model Chipotle just rolled out.
"We're excited to expand our momentous partnership by powering Chipotle's in-app and web delivery experience," added Christopher Payne, chief operating officer of DoorDash. "Our expanded partnership leverages our strong logistics platform, which enables Chipotle to further the brand's commitment to make its delicious food available to their customers wherever and however they want it."
Chipotle hinted at this service during a special investors call in June, saying it would install in-app delivery to 2,000 restaurants by the end of the year.
“Later this summer we will add delivery capabilities to our app so the fastest way to deliver Chipotle to your chair is a couple of clicks away,” CEO Brian Niccol said in the call.
Niccol has said on multiple occasions that Chipotle’s delivery opportunity is just getting underway. He’s estimated that 50 percent of guests still aren’t aware delivery is even available at the chain, despite the fact sales via the channel quadrupled this past quarter. Chipotle also continues to add second make-lines at a rapid rate into its restaurants, hoping to maintain throughput as it tacks on off-premises business. As of the second quarter, second make-lines were in about 500 restaurants, with 1,000 planned for year’s end, and systemwide rollout expected by the end of 2019.
Chipotle’s digital sales lifted 33 percent in Q2 and now account for 10.3 percent of sales, an impressive acceleration from 20 percent in the first quarter. Chipotle’s app and website now have 4 million active monthly users as well, which is a 65 percent increase since the end of last year.