How Chipotle and Panera are leveraging technology to create unparalleled omnichannel experiences
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Key Takeaways
Meet the Speakers
These brands ‘meet customers where they are’
Mobile ordering is a top digital priority
Digital technologies are a key to effective loyalty programs
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Technology is helping improve operational efficiency
Technology priorities focus on adding value throughout the customer journey
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In the past year, Panera Bread’s technology investments have been guest facing to build up the company’s new subscription capabilities, have focused on personalization across all touchpoints on the customer’s journey—including the web app and kiosks in Panera’s cafes—and have included the digitally enabled café, which includes drive thru. Technology supports personalization at Panera by making it faster and easier to order, making the experience more frictionless, serving up recommendations, and putting the customer in control.
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“We have 52 company restaurants, making us the largest operator of the restaurant brand. So, we are right there next to the franchisee. We know exactly what it takes to run them and what it takes to build them and what the challenges are, be they labor or food or whatever.”
- Scott Deviney, CEO, Chicken Salad Chick
Priorities include mobile ordering, personalization, and enabling drive thru
“I think in the past, restaurants have been perceived as behind retail [in using technology]. I really believe that restaurants can be a leading vertical with digital and technology, in service of our guests.”
George Hanson, Panera Bread
Chipotle has also invested in technology to create a strong, scalable digital system. At Chipotle, digital sales represent 40% of revenues. Chipotle keeps its customer at the center as it explores solutions and new capabilities to extend its digital ecosystem.
“We don’t add technology for the sake of adding technology and adding bells and whistles. We look to do that in ways that really add value to our customers.”
Nicole West, Chipotle Mexican Grill
For Chipotle, meeting customers where they are means “enabling customers to access Chipotle in ways that make sense for them.” That can be using the mobile app for speed and convenience when using features like “save favorites” or “rapid reorder.” It can mean having pickup times as fast as 10 minutes and delivery within an hour in most parts of the country. Meeting customers where they are can mean engaging customers with gamification on the app, with personalized extras and rewards.
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Give customers options to have experiences they prefer
Panera thinks similarly by asking, where is the customer? How do they want to access us, and what type of experience do they want? This means providing customers with multiple access options and tailoring the experience to each customer’s preferences. For a customer who want a very human experience, have a person who can fulfill their order. Or, for a person who prefers a completely digital experience, make that experience easy, fast, seamless, and frictionless.
“When we say that we work to meet our customers where they are, it’s important to note that we’ve built this digital system to enable customers to access Chipotle in ways that make sense for them.”
“Part of meeting guests where they are is really another way of saying how do they want to interact with you?”
Nicole West, Chipotle
George Hanson sees consumers adopting digital and doing more on their phones in all business categories—retail, travel, financial services, and more. Being able to order on their phones puts customers in charge and gives them control.
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Mobile ordering is a top digital priority for Chipotle and Panera
The keys are ease, speed, personalization, and control
“It’s a fairly reasonable way to get new guests in your restaurant, partly because third-party delivery is bringing them there.”
Today, Chipotle is primarily focused on ordering through the mobile app, through the web, and via delivery marketplaces. The vast majority of Chipotle’s customers access the brand and place orders via mobile devices, including both the mobile app and the mobile web.
“Consumers have voted. They like to be in control. Being enabled to do more on their phones puts them in control of their experience to the degree they want.”
“Our digital business in Q1 was about 40% of all company sales . . . and most of our customers who are placing digital orders are doing so on a mobile device
Chipotle Mobile App
When asked what technologies are used by major chains that have not yet been adopted or embraced by smaller restaurants, Mr. Hanson emphasized technologies related to the ordering process. He advised operators to be very self-aware and critical of their ordering process, especially their online or mobile ordering process. How many steps is it taking? Is it intuitive? Is it serving all guests and is it easy?
Panera Mobile App
Currently, mobile order pickup is available at all 3,000 Chipotle locations and Chipotle is piloting the “drive thru of the future” at 400 locations. This drive thru is solely for pickup of orders place on the mobile app or on the web.
Panera has data on the 45 million MyPanera members. It is harnessing and leveraging this data across all touchpoints. This includes using email to communicate with members to highlight Panera’s loyalty program. These efforts are working as over 50% of Panera’s transactions involve the loyalty program. As part of its loyalty program, Panera is using gamification and is personalizing the loyalty program by giving guests more choice about the rewards that they earn.
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Rewards is also an important part of Chipotle’s digital strategy and experience. Chipotle’s Rewards program, which is now three years old, has 28 million members. Among the features of the Rewards program that engage members is “Guac Mode,” where members are surprised with free guacamole. Promoting this feature drove a 35% increase in Rewards program enrollment in one week.
Loyalty programs leverage data to personalize the experience . . . and boost loyalty
“One of the things we’re excited about is giving the guests more choice around the rewards versus ‘here’s the reward, take it or leave it.’ It’s empowering guests to self-direct their experience.”
Chipotle leverages the data is collects about Rewards members for predictive modeling and personalized marketing. For example, if a customer regularly orders vegetarian or vegan options, Chipotle won’t market to them a new steak offering. Instead, Chipotle would market its new plant-based offering. This is just one example of the type of personalized engagement Chipotle is focused on through its digital experience.
“Our Rewards members are amazing and are incredibly loyal. Rewards continues to be a key enabler of our digital flywheel and is core to our digital experience.”
45 Million
MyPanera members
28 Million
Chipotle Rewards members
Use of technology in restaurants goes beyond just guest-facing applications; technology is also being used to boost operational efficiency.
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At Chipotle, other uses of technology include:
A labor scheduling tool. This tool uses AI to put the right person in the right position in the restaurant at the right time—creating a more efficient, consistent, compliant work environment.
Panera is also exploring automation, such as an automated coffee brewing system to support the company’s new beverage subscription model: the Unlimited SIP Club. In adopting automation, Panera’s goal is not cost savings or labor elimination; it is to free up associates to spend higher-value time with guests.
Innovative
Digital kitchens. Chipotle has created a secondary make line it calls its “digital kitchen.” This line is built to enable crew members to support the digital business, to deliver digital orders efficiency and accurately. Chipotle obsesses over all of the details to remove friction in how the order is created and how handoffs occur, and to optimize the customer pick-up experience.
Chippy—an automated tortilla chip maker. When asking workers what tasks are least enjoyable, “frying chips” consistently ranks as one of the least enjoyable tasks. So, Chipotle has explored automation to perform this task, as well as cutting and coring avocados.
“Be replacing some tasks like checking on coffee, we can automate that. That would free up our teams to spend more time with high-value interactions with guests.”
Chippy – Chipotle’s Robotic Kitchen Assistant
Nicole West
VP of Digital Strategy and Product Chipotle Mexican Grill
Nicole West is the Vice President of Digital Strategy and Product at Chipotle Mexican Grill. As a proven leader with close to 20 years of experience in the restaurant industry, Nicole is responsible for the products that bring Chipotle’s digital ecosystem to life including Chipotle.com, award-winning Chipotle App and Digital Kitchens located inside Chipotle restaurants. Nicole oversees UI/UX design as well as the development and execution of Chipotle’s integrated ‘customer-first’ digital roadmap.
George Hanson
SVP & Chief Digital Officer Panera Bread
George Hanson joined Panera in December 2019 as Senior Vice President, Chief Digital Officer, bringing his extensive digital, e-commerce, and direct consumer marketing experience to the company. Before joining Panera, George served as Vice President, North America E-Commerce and Retail Stores for Under Armour, holding full P&L responsibility for the North America Direct to Consumer business. Previously, he led the digital business for Lane Bryant, and held various leadership U.S. and Global positions at Lands’ End, including leading the Lands’ End Japan business based in Tokyo.
Joanna Fantozzi - Moderator
Associate Editor Nation's Restaurant News/Restaurant Hospitality
Patrick Quirk
Vice President & General Manager, Vertiv
Patrick Quirk directs strategy for our global embedded firmware operations and now leads converged systems business. Prior to Vertiv, he served in leadership roles for telecommunications and semiconductor technology companies in the US and Europe.
Speakers
Joanna Fantozzi is an Associate Editor with Nation’s Restaurant News and Restaurant Hospitality. She covers political/cultural issues and news for both publications and has more than seven years of experience writing about the restaurant industry. Her editorial coverage ranges from independent restaurants around the country to some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s. Joanna’s work has also appeared in Business Insider, The Daily Meal, Forbes, and Vice.
Watch the WEbinar
New Frontiers in Restaurant Tech
Watch Webinar
George Hanson, SVP and chief digital officer for Panera, joins CREATE for a keynote discussion on how restaurant companies can leverage the latest technologies to create unparalleled omnichannel experiences and offer next-level personalization for customers. Plus, learn how Panera and other leading restaurants are planning to unlock new opportunities in the metaverse.
WEbinars
Nicole West, VP of Digital Strategy and Product for Chipotle Mexican Grill, joins CREATE for an in-depth discussion on how to engage customers whenever and wherever they interact with the brand. West, a member of the 2022 Nation’s Restaurant News Power List, shares how her team is driving Chipotle’s multibillion dollar mobile and digital sales with a relentless focus on customer experience. Learn how the brand is investing in artificial intelligence, automation and the metaverse — and why you should expect to see Chipotle “show up in unexpected ways.”
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