Food & Drink

This is how Chipotle plans to bring customers back

Chipotle Mexican Grill just wants people to come back again.

The beleaguered business has tried giving away food — 6.5 million burritos — earlier this year, but now it wants customers to earn their free food by stopping in regularly and spending money.

A new summer promotion starting on July 1 — Chiptopia — rewards customers for the frequency of their visits in a month. Customers get free chips and guacamole just for signing up in July.

Customers earn a free entrée if they visit at least four times a month and spend a minimum of $6 per visit, which is below Chipotle’s average check per person, according to Hedgeye Risk Management analyst Howard Penney.

“This is all about a short-term pickup,” Penney said, adding that “you don’t build loyalty by giving away food.” The program ends in September.

The Denver-based chain is still struggling to build back its sales after a series of E. coli and norovirus outbreaks last year scared away diners.

Same-store sales in the first quarter declined by 30 percent and revenues declined by 23.4 percent in the quarter ending March 31.

“We created Chiptopia to reward our most loyal customers,” Chipotle executive Mark Crumpacker said in a statement.

Diners get free food after four visits and can earn as much as $240 worth of free food — or a catered event for 20 people — for visiting 11 times each month for three months.

“The problem is that the program is only aimed at Chipotle’s customer base,” said restaurant consultant Arlene Spiegel. “This is not going to attract new people.”

Chipotle’s stock declined nearly 3 percent, to $388.78, Monday.