Chipotle To Shut Up To 65 Underperforming Restaurants
Chipotle is closing as many as 65 underperforming restaurants and will revamp its marketing, said chain executives this week.
Chipotle Mexican Grill’s new CEO, Brian Niccol, made the announcement in a conference call with investors, according to Fortune magazine.
Niccol, who became the chain’s executive this winter, said that between 55 and 65 stores would be closed out of 2,400 around the world.
“We will make the brand more culturally relevant,” Niccol told investors in the call.
He said that the chain will introduce more snack items as well as a “happy hour” deal between 2 p.m. and 5 p.m., selling $2 tacos, beer, and margaritas.
“I can easily see a future where Chipotle more than doubles the business to $10 billion in revenue. We will execute flawlessly in our existing restaurants, add more high-performing restaurants, build brand relevance and engagement, expand digital capabilities for team members and customers, and build an organization with top-tier talent that can win today and cultivate a better future,” he said, according to the 24/7 Wall St. website.
He also offered details of downsizing.
“The restructuring to execute on the strategy will require changes to the organization and to the culture, which will result in non-recurring charges during the second quarter, and over the next several quarters. These non-recurring costs primarily relate to the moving of offices, the restructuring of the organization, and closing underperforming restaurants. In aggregate, Chipotle expects these costs, together with a small amount of other unusual items, to be in the range of $115 million to $135 million,” he said.