Customers' opinions of Chipotle have plunged to historic lows in a disturbing 'new normal' for the chain
Hollis Johnson
- Chipotle gets lower scores from customers today than it did during the 2015 E. coli outbreak that affected its restaurants in 14 states, according to an analysis by the UBS Evidence Lab.
- Customers cited concerns about food safety as the top reason why they are visiting Chipotle less often.
- Other reasons for avoiding Chipotle included: preference for other restaurant chains, family and friends aren't interested in going, it's too expensive, and restaurants aren't as clean as they once were.
Customers' opinion of Chipotle has dipped to historic lows, according to a UBS analysis of the restaurant chain's online reviews.
In fact, Chipotle gets lower scores from customers today than it did during the 2015 E. coli outbreak that affected its restaurants in 14 states, the analysis found.
The declining scores are a sign that Chipotle isn't in the midst of a recovery; instead, it's facing a "new normal" of sluggish growth, UBS analysts said.
"New product launches and increased marketing activity have not meaningfully accelerated growth, and we believe Chipotle is facing a new normal rather than an ongoing recovery," the analysts wrote.
UBS Evidence Lab
Customers cited concerns about food safety as the top reason why they are visiting Chipotle less often.
Other reasons for avoiding Chipotle included: preference for other restaurant chains, family and friends aren't interested in going, it's too expensive, and restaurants aren't as clean as they once were.
Employee satisfaction is also dipping at Chipotle, which could put further pressure on the restaurant chain in a tight labor market, analysts wrote.
UBS Evidence Lab
Chipotle has invested heavily in trying to improve its brand perception through a national marketing campaign and then getting customers to return by rolling out new menu items.
But many of Chipotle's new menu items have failed. Chorizo was pulled from the menu, and customers' reaction to the chain's new queso has been lackluster.
The company also recently revealed that it's ditching its first dessert, buñuelos.
The Future of Retail 2018 by the BI Intelligence Research Team.
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