Chipotle is testing happy hour pricing in three markets
The fast-casual Mexican chain is offering the $2.50 tacos in Kansas City, Orlando and Tampa through June 2.
Chipotle CEO Scott Boatwright teased of a “happier hour” test during the company’s first quarter earnings call in late April, noting that the objective is to understand its “pricing power elasticity.”
“We're going to test ideas like that to understand where we may have a challenged market from a pricing perspective, and what levers can we pull to get consumers in our restaurants and feel like they're not getting good value, they're getting extraordinary value,” he said.
Now we have a bit more clarity about what that test looks like. The “Power Up at Chipotle” promotion was recently tested in Kansas City, Orlando and Tampa from 2 to 5 p.m. Monday through Friday. It included $2.50 soft or crispy tacos with any protein, including Chipotle Honey Chicken.
The company said the test opens up a new opportunity in the afternoons for consumers seeking snacks. Chipotle cites Datassential research showing that 90% of consumers now eat outside of traditional mealtimes, with 52% of younger consumers identifying 2 to 5 p.m. as their peak snack window.
“As more guests turn to restaurants for snacks, we’re looking at how Chipotle can fit into those moments,” Senior Vice President, Brand Marketing Stephanie Perdue said in a statement. “When many snacks rely on artificial ingredients, Chipotle offers a different kind of boost — real food made without shortcuts. Power Up at Chipotle makes it easy to grab something quick and satisfying, whether you’re heading to practice, between classes, or meeting up with friends.”
The Power Up at Chipotle offer was good for in-restaurant orders only. There was an additional cost for guacamole, Queso Blanco, extra protein or other premium add-ons.
Chipotle will leverage its stage-gate process to listen, test and learn from customer feedback, and iterate before deciding on a broader launch strategy.
