Chipotle says customers can't get enough of its Chicken al Pastor – and it means it's having to spend less on pricier beef
- Chipotle says its limited-edition Chicken al Pastor is boosting sales and attracting new customers.
- Some diners are opting for this protein instead of beef, which is significantly more expensive for the chain.
Chipotle says customers can't get enough of its limited-edition protein option, Chicken al Pastor – and it's helping the chain save money because it doesn't have to order as much beef.
Chicken al Pastor was added to its menus in March, and according to CEO Brian Niccol, one in five customer orders at the chain now include the protein.
"We've got a benefit because Chicken al Pastor has really shifted some of our customers from the more expensive beef into the less expensive chicken," CFO Jack Hartung said in an earnings call on Wednesday.
Beef is significantly more expensive than chicken, and prices are rising. According to the Bureau for Labor Statistics' Producer Price Index, the price of beef rose 14.8% over the year to June 2023, compared to a 21.7% drop for what the BLS classifies as "processed young chickens."
Chicken al Pastor isn't just cheaper for Chipotle to make, it's also helping to attract new customers, the company said.
Plus, it was a fairly straightforward dish to launch because it's made using Chipotle's existing adobo chicken, which is then mixed in an al pastor marinade.
The Chicken al Pastor, which is flavored with adobo, morita peppers, ground achiote, pineapple, cilantro, and lime, will be on Chipotle's menu until late August, Niccol said, though he previously said that the chain could potentially consider making it a permanent item "down the road."
Chipotle said that the introduction of this dish marked the first time they rolled out a new menu item in global markets simultaneously. It is currently available in the US, Canada, UK, Germany, and France.
Chipotle's total revenue in the second quarter increased 13.6% year-over-year to $2.5 billion, while its comparable restaurant sales increased 7.4%. The chain said that it had benefitted from lower avocado prices and menu price increases in 2022. Digital sales made up 38% of its total food and beverage revenue, it said.
Insider reached out to Chipotle for further comment but did not immediately hear back.