Is Chipotle’s Digital Restaurant the New Look of Retail?

Chipotle Mexican Grill opened its first-ever digital-only restaurant last weekend, but it doesn’t want customers to eat there.

The Chipotle Digital Kitchen in Highland Falls, NY, is open for pickup and delivery only. The concept isn’t new of course, Starbucks launched its Starbucks Pickup store in Manhattan in 2019, which allows customers to order their drinks through the Starbucks mobile app and then pick them up at the store. Starbucks announced in June it will close up to 400 company-operated traditional cafes in North America over the next 18 months and open a “greater number” of new stores in different locations with innovative store formats. The coffee retailer said at the time it has committed to the expansion of the Starbucks Pickup store format.

Also in 2019, Walmart piloted its first Pickup Point concept store. The 40,000-square-foot Walmart Pickup Point in Lincolnwood, IL, set out to fulfill online orders through pickup or delivery options, but shoppers could not shop inside the building.

“Chipotle’s first digital-only restaurant is being driven by the explosion of online orders in fast-casual and quick-service restaurants,” Will Eadie, chief revenue officer at WorkJam, tells RIS. “As online orders become a larger portion of chains’ sales, these digital-only locations will likely increase in the US. The concept of what a restaurant looks like is fundamentally transforming, and digital-only restaurants are set to play a major role.”

Chipotle says the Digital Kitchen concept is focused on accelerating its digital business in non-traditional locations or “more urban areas that wouldn’t support a full-size restaurant.”

“The Digital Kitchen incorporates innovative features that will complement our rapidly growing digital business, while delivering a convenient and frictionless experience for our guests,” said Curt Garner, chief technology officer of Chipotle. “With digital sales tripling year over year last quarter, consumers are demanding more digital access than ever before so we’re constantly exploring new ways to enhance the experience for our guests.”

The location does not include a dining room or front service line and customers must order in advance via Chipotle.com, the Chipotle app or third-party delivery partners. Orders are then picked up from a lobby that is designed to include all of the sounds, smells and kitchen views of a traditional Chipotle restaurant. The Digital Kitchen will also service large catering orders available for pickup in a separate lobby with its own dedicated entry.

“In order to adapt to this new business model, organizations need to develop a new set of frontline operations,” echoes Eadie. “The key will be to deploy digital workplace technology down to the frontlines on mobile devices or on-premise kiosks to enable real-time task management, cross-location scheduling, up-to-date communication, and access to secure documents.”

Chipotle said its new design concepts and menu innovation are envisioned at the retailer’s Cultivate Center in Irvine, CA. The new 22,000-square-foot facility center is located minutes from Chipotle’s corporate headquarters.

Read the full article here: RIS News

November, 16 2020 / RIS News

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2020-11-28T07:26:43-05:00