Chipotle Says It Has Built a Profitable Delivery Business

Many restaurant operators are concerned about the negative impacts of working with third-party delivery services, from low profit margins to a sub-par customer experience with delivered food. Chipotle, however, wants to be clear: delivery is a growing and highly profitable business for the chain. Delivery sales increased roughly 13 times over in the fourth quarter of 2018 compared to sales generated in the channel for the fourth quarter of 2017. Chipotle CEO Brian Niccol connected the sales bump in large part to the free delivery bowl promotion that Chipotle ran from December 17 to January 7. Nearly half of Chipotle customers who cashed in on the deal were new or lapsed diners, according to the company, and there continued to be a lift in delivery sales after the promotion ended. Niccol credited the success of the promotion to the fact that the marketing team tied it to an event (college football championships) and followed