Chipotle Taps Targeted Upselling as Restaurants Compete to Personalize the Experience

Core Insights - Chipotle Mexican Grill is utilizing digital data from its loyalty program to enhance customer engagement and personalize marketing efforts [1][4] - The company reported a slight decline in digital sales mix, with Q4 2023 digital sales accounting for 36.1% and full year 2023 at 37.4%, down from 37.4% and 39.4% respectively a year earlier [3][4] - Despite the decline in digital sales mix, consumer interest in digital ordering remains high, with significant opportunities for personalized messaging [4] Company Strategies - Chipotle has implemented suggestive upselling on its app based on insights from its Rewards members, including prior order history [1] - The company aims to commercialize customer data for targeted marketing campaigns and improve the overall digital experience to drive increased frequency and spending [1] - Competitors like Starbucks and McDonald's are also focusing on digital personalization, with Starbucks using AI tools to identify and incentivize loyalty program members [2] Industry Trends - A PYMNTS Intelligence report indicates that 71% of U.S. consumers have received personalized offers and are interested in them, with an additional 12% expressing interest despite not having received such offers [1] - Research shows that 1 in 4 U.S. restaurant customers exclusively orders food using internet-connected devices, while 36% use both traditional and digital channels [3]