Chipotle has experienced significant success with its new product launches of late–a testament to the company’s rigid “stage-gate” testing process.
Just this year, for example, Chipotle has launched cilantro-lime cauliflower rice and a hand-crafted quesadilla–its first new customizable entrée in 17 years.
The latest product to come from its stage-gate process is the Smoked Brisket, available starting today for Rewards members in the U.S. and Canada for a limited time. It will be available in-store starting Sept. 23 and via delivery starting Sept. 27. The product includes hand-chopped beef smoked and grilled with Mexican spices and finished with a new brisket sauce made with smoky chili peppers.
“This isn’t your standard brisket experience,” CMO Chris Brandt said in a statement. “We’ve created a differentiated Smoked Brisket recipe that is authentic to our menu and pairs flawlessly with our real ingredients.”
According to the company, brisket has been among the top requested menu items from guests and this particular offering has been in development for two years.
During its most recent earnings call in July, CEO Brian Niccol said the Smoked Brisket has been “validated” by the stage-gate process and the timing of the launch would be based on the marketplace.
Of course, the chain has to contend with beef prices, which have challenged the entire industry. Last quarter for example, CFO Jack Hartung predicted higher commodity costs, along with staffing shortages, would cancel out the 3.5% to 4% menu price increase implemented by the chain to cover higher wages.
But beef is also a higher margin product, which could ease resistance to price increases, according to Wedbush analysts. Those analysts also point to Chipotle’s previous success in introducing another new protein–Carne Asada in 2020–which lifted average check at the chain.
The chain is aiming for $3 million in average unit volumes, up from its current $2.5-plus million, and beef brisket could be the tipping point it needs to get there.
To celebrate the launch, Chipotle is waiving the delivery fee on all smoked brisket orders via its native channels–the Chipotle app, Chipotle.com and Chipotle.ca –from Sept. 27 through Oct. 3. This, along with early access to the product for its 24 million loyalty members, should also provide a major digital boost for the company that is already experiencing quite a tailwind here. Earlier this month, Chipotle announced its digital sales have surpassed the $2 billion mark, for instance–no doubt an advantageous position given that digital customers tend to spend and visit more.