NEW YORK (AP) – Chipotle is introducing a temporary loyalty program meant to get customers back into its stores following a series of food scares. Someone who achieves the Hot level in all three months can earn up to nine free entrées over the course of the rewards program, plus a $240 “Catering for 20” Bonus Reward.
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Under its three-month-long Chiptopia Summer Rewards, which runs from July through September, four visits with entree purchases – not just a drink or a side of beans – in one month confer “Mild”-level achievement, i.e. one free entree”.
There are three levels to the program: mild, medium and hot.
Chipotle’s complex-but-generous rewards program risks giving away a lot of free burritos and goodies for already-paying customers, but not attracting lapsed or new diners.
Four purchases of at least $6 in a month earns “mild” status and a free entrée. Instead it’s all about paid visits during a given month.
Customers will get free chips and guacamole with their first purchase with the card.
Generally, people can earn a free entree after their fourth, eighth and 11th visit within a month.
Any indication that Chipotle’s brand is regaining strength will be good news for Chipotle stock holders later in the year, but this will not have an effect on CMG’s July 21 earnings.
Chiptopia doesn’t seem to work like your typical fast food or coffee chain rewards programs.
The company saw a 29.7 percent drop in same-store sales in the first quarter of 2016, according to Eater.
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“… We will be carefully listening to our customers and using what we learn as we consider the design of an ongoing rewards program”, said Mark Crumpacker, chief creative and development officer at Chipotle in a release.
