Chipotle Can't Even Give The Stuff Away
Recovery will just take time.
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Despite blanketing the country with coupons for free burritos, Chipotle said Tuesday its sales continued to tank over the past two months. Now it expects to post a $1-per-share loss in the first quarter, instead of the break-even quarter it initially forecast. What gives?
For one, it turns out you don't make a lot of money by giving away stuff for free. But it's also an indication that millions of dollars of marketing isn't a compelling enough reason to bring back restaurant-goers who may have only come for the free meal, or those who moved on to Chipotle competitors in the wake of its food borne-illness scandal. Recovering those diners is going to take time.