How Chipotle's Online Business Achieved $1 Billion in Sales

Every day, the QSR landscape becomes increasingly digital. With digital ordering constantly growing and mobile pick-up orders becoming more popular than ever, Chipotle has been at the front of this movement for some time, developing new technologies from voice automated ordering to grab-and-go shelves as a way to digitalize its offering. 

This year, Chipotle has invested heavier than ever in its digital future, deploying digital order pickup lanes dubbed Chipotlanes. It also launched a new loyalty program—Chipotle Rewards—and revamped its online catering platform to create a more seamless experience for both customers and crew members.

The investment seems to be paying off. Digital has been growing exponentially for the restaurant, generating $256 million during the third quarter, an increase of 87.9% compared to the previous year’s quarter. 

In addition to streamlined online pick-up ordering, Chipotle has prioritized voice automation for phone orders, which rolled out across its system this year. The chain will join the emerging trend of using artificial intelligence to improve the ordering experience while boosting operational efficiency and freeing up employees from doing time-consuming tasks at the same time.

In 2017, Domino's began offering the ability ordering via emoji, while Wingstop and Dunkin' also offer voice ordering. Starbucks launched voice ordering in China earlier this year. The QSR burger chain Sonic also began testing a voice-automated menu in May through a partnership with Mastercard and kiosk vendor ZIVELO. 

AI technology also allows franchisors to collect data on customer preference, monitor sales activity to predict future supply chain needs and help with scheduling employees to maximize workflows. For example, TGI Fridays has been using machine learning for guest customization and employee scheduling. Earlier this year, McDonald’s began testing voice-activated drive-thrus and deep-frying robots.

When it comes to the digital world, Chipotle has just barely scratched the service and yet the first three quarters of the year have generated $725 million in digital sales, meaning the chain could close in on $1 billion by the end of 2019 if the fourth quarter proves to have $200 million or more in digital sales. Not too bad!

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