Dive Brief:
- Chipotle will relaunch its Chipotle Rewards loyalty program in the spring with plans to increase its reach and use AI to offer more personalized experiences, CEO Scott Boatwright said on a Q4 2025 earnings call Tuesday.
- The updated loyalty program will be designed to target in-restaurant customers and remove friction from the checkout experience, according to Boatwright. Chipotle Rewards will continue to leverage gamification as well.
- Chipotle’s loyalty program reached more than 21 million active members in 2025. The growth “gives us confidence that there remains a significant runway for growth by bringing more guests into the funnel, deepening engagement and driving sales throughout the year,” Boatwright said on the call.
Dive Insight:
Chipotle sees opportunities in growing the share of loyalty transactions conducted in-store while using personalized outreach to bring back lapsed customers.
AI will play a key role in its strategy, Boatwright said. The company is able to offer deals based on how they frequented the brand in the past, which represents a “meaningful” change in how the company drives demand.
About 30% of Chipotle’s sales are realized through its loyalty program, according to Boatwright. However, not all channels are equal — only about 20% of in-restaurant transactions use the rewards program, compared to nearly 90% of transactions made on the Chipotle app.
Part of Chipotle’s strategy is improving the in-restaurant experience with fresh equipment designed to improve speed and consistency, Boatwright said. The equipment can reduce time spent on preparation by two to three hours during peak periods, and Chipotle plans to reinvest that time into providing better hospitality.
The restaurant’s loyalty and CX plans come on the heels of a weak quarter. Comparable sales fell 2.5% year over year, though total revenue grew 4.9% year over year to $3 billion, according to a fourth quarter 2025 earnings release.
Chipotle expects its Recipe for Growth strategy, which includes menu innovation alongside its loyalty and experience improvements, to help the company fuel growth in the future.
“Our path for further success lies in leaning into what differentiates our brand, accelerating innovation into new offerings and occasions that are of growing importance to our guests and optimizing the in-restaurant and digital experience,” Boatwright said.
