Chipotle Launches Loyalty Program

Chipotle Mexican Grill (NYSE: CMG), announced on Tuesday the national launch of its highly anticipated loyalty program, Chipotle Rewards. For launch week they are partnering with Venmo payouts to give away up to USD 250,000 to Chipotle fans.

The nationwide launch of the permanent rewards program, Chipotle Rewards, is the latest advancement in Chipotle’s efforts to make the brand more accessible and to strengthen the relationship with its community.

A rewards program has been highly requested amongst Chipotle customers. A interactive loyalty program like Chipotle Rewards is exactly what the Company needs to engage with customers. Digital innovation is becoming a priority for Chipotle and the loyalty program initiative is expected to add major growth to its digital platform. About 13 percent of sales in the fourth quarter of 2018 were generated from Chipotles digital business. Chipotle Rewards is predicted to multiply that number.

To earn free Chipotle with Chipotle Rewards, people can sign up in the Chipotle app or or on the website. Customer will earn 10 points for every one dollar  spent in the restaurant, online, or in the app, with 1,250 points resulting in a free entrée. It will also offer Bonuses, like extra point days, and birthday rewards.

Chipotle is also using Venmo payouts to give away up to a quarter of a million dollars, to approximately 25,000 Chipotle fans per day, from now through March 15, 2019.

“Chipotle is one of the first brands to utilize Venmo’s technology to engage with customers through this pay-out feature on the Venmo app,” said Chris Brandt, chief marketing officer at Chipotle. “Our customers have been asking for a loyalty program for a long time and we’re excited to partner with Venmo to reach their highly engaged network of digital-first customers to launch Chipotle Rewards, where the more you Chipotle, the more you can get free Chipotle!”

4 Comments
  1. Ben Watson 2 months ago
    Reply

    Some technical traders may wait for a retest of broken resistance before diving in. $CMG broke out and retested possible support, but no guarantee of moving higher.

  2. Steve Patterson 2 months ago
    Reply

    Chipotle hit a new 52-week high today, which also means it has hit a new post-food-safety-crisis high ($635.60) thanks to the introduction of its new loyalty program.

    • Will Cedar 2 months ago
      Reply

      I sold my position in $CMG at $326… slightly regretting it right now. Only slightly, because I did get salmonella from Chipotle in 2011, and was hospitalized for two nights at NYU Medical.

  3. Carl Engleking 2 months ago
    Reply

    Getting stubborn in $cmg The valuation just makes no sense. It’s brick and mortar retail…wage inflation, competition, they’re out of pricing power after taking 7% in the last year. Compare it to any resty and it makes no sense beyond being a squeeze, which I can fight through.

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