Here’s Why Chipotle Appointed A “Chief Restaurant Officer”
As it works to improve its restaurant operations and regain the confidence lost due the E. coli virus, Chipotle Mexican Grill (NYSE: CMG) is hiring senior officials to augment its leadership team. Recently the company appointed Scott Boatwright as its Chief Restaurant Officer with the responsibility to supervise restaurant operations in its North American restaurants. This move comes after the company’s CFO mentioned in a recent interview that its staff was distracted and not serving customers as per expectations. Focusing on employee related initiatives to improve its services has been one of the key priorities for Chipotle and appointing a Chief Restaurant Officer appears to be a related initiative.
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Focus On Elevating Guest Experience
Improving customer experience at its restaurants is one of the key focus areas for Chipotle to drive revenues. Scott Boatwright’s experience at Arby’s, where he was responsible for the success and performance of nearly 2,000 restaurants, will be valuable to Chipotle, as the company looks at improving operational efficiency. Its new Chief Restaurant Officer has immense experience in delivering an excellent guest experience and strategic planning to support the overall operations plan. As customers demand better and faster service at fast casual dining restaurants, we believe Chipotle’s focus on improving its customer service will be a key growth driver in the long term. Restaurants which are struggling with operational efficiency are losing customers in a competitive environment and a challenging industry. Starbucks has reported a slower growth in comparable sales due to a congestion problem caused by the overwhelming orders placed via its mobile order and pay system. This indicates that customers are not willing to wait in longer queues or spend more than a reasonable time in a restaurant to get their orders. The millennial generation is looking for quicker service, better quality of food, and healthier ingredients.
While Chipotle has focused enough on its food quality and safety after the E. coli virus, ensuring that its customer service is better than competitors can drive traffic for the company. A senior executive who can oversee restaurant operations, build efficiencies, retain employees, and boost their morale, can become an asset for the company. Whether his appointment will drive traffic at Chipotle’s restaurants will be visible in the coming quarters.
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