Chipotle Mexican Grill Inc. (NYSE: CMG) is seeing real results from its recently unveiled “For Real” campaign. Or perhaps a change in scenery is already helping the burrito maker.
The fast-casual chain, which moved its headquarters from Denver to Newport Beach about a month ago, said on its third-quarter earnings call last month that its new marketing push contributed to increased sales.
Chief Executive Brian Niccol said it “made important progress during the quarter with the introduction of our For Real marketing strategy,” and that the campaign had a tangible impact on sales.
It reported same-store sales increased 4.4% at a time when industry peers have experienced flat to 2% increases in comps in recent months.
Chipotle revenue was up 9% to $1.2 billion, and net income was about $60 million, up 60% year-over-year.
The marketing effort, launched on Sept. 25, included television, radio, digital and print spots, as well as Chipotle’s social media channels and website. The slogan refers to the chain’s promotion of using “real food,” while pointing out that it uses only 51 ingredients.
National TV ads will appear through this month, and digital and social ads will continue until year-end, Niccol said during the call, adding that it will have a presence on national media only where and when it makes sense.
Niccol made it clear when he joined the chain in April, after serving as chief executive of Irvine-based Taco Bell Corp., that Chipotle “has been invisible” and needed to increase marketing and promotional spending. It projects marketing and promotional costs to represent about 3% of sales this year.
The company has about 2,450 restaurants and systemwide sales of $4.5 billion. It ranks 10th among large firms on the Business Journal’s list of the fastest-growing public companies based in Orange County.
Company shares have increased since Chipotle announced its latest earnings. Its market value is $13.1 billion.
Q & A
If you want a local’s suggestion on where to eat in Newport Beach—don’t ask Siri, ask Marina.
Newport Beach and Co., the city’s marketing arm, debuted website AskMarinaNB.com this month to help visitors and residents easily explore the city.
The site launched during the organization’s Annual Marketing Outlook dinner at The Resort at Pelican Hill.
The event honored commercial developer and Balboa Island resident Robert Olson—who built the Lido House hotel, the city’s first big new hotel since Pelican Hill—with the Dennis O’Neil Partner in Progress Award.
It also feted Balboa Bay Resort front-desk agent Rebecca Willis with the Rosalind Williams Service Excellence Award.
The Marina mobile tool works like a digital concierge and makes personalized recommendations on things to do, as well as dining and hotel options. It was developed by Reno, Nev.-based digital agency Noble Studios.
Users can either click to find activities and dining options near their locations or “find my perfect match.”
If they’d prefer Marina to play matchmaker, visitors can select what they’re in the mood for, such as “explore alluring history,” then click how they’re feeling, i.e., “adventurous,” followed by outlining who they are, such as “me, myself and I” or “co-workers.”
A list will pop up with various suggestions, including the option to “Ask a Local.”
Newport Beach Marriott Hotel & Spa General Manager and chair of Newport Beach and Co.’s executive committee Debbie Snavely said the mobile-friendly website helps visitors easily navigate the city.
“It’s sort of like Siri and Alexa, but only better because she actually understands you,” Donahue said during the annual dinner. “As an agency built on the foundation of entrepreneurship and innovation, this is a step towards harnessing the ever-growing power and utility of artificial intelligence in a way that expands destination knowledge and service.”
Ad Appointment
Gigasavvy President and founding partner Kyle Johnston gained a new title last month: president of the American Advertising Federation of Orange County, succeeding Rachel Svoboda.
The advertising executive, whose Irvine-based company ranks No. 18 among the area’s largest marketing firms by employee count, started his new post last month when the organization also unveiled a newly designed website.
Johnston said he’s excited about the new gig and is already working with other local organizations, such as the Orange County chapter of the Public Relations Society of America and the American Marketing Association of Orange County.
“We’re working on a co-led Christmas party to break the ice and get everybody excited,” he said. “Ideally, what we’re trying to do is have a number of co-hosted events over the next six months, like speaker panels and networking events to bring the communities together.”
But Johnston said he’s most excited about “elevating the Orange County creative community.”
