Chipotle adds a really popular item to its menus nationwide

Taco Bell seems to fiddle with its menu on a weekly basis. It only rarely does something bold like adding a new protein, but it finds new ways to modify its core menu items that make them new.

That could mean a new cheese, a novel sauce, or some other minor addition that can then be used in multiple ways. It’s an innovative way to keep things fresh so customers never know exactly what to expect when they enter a store.

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In addition, the Yum Brands  (YUM)  chain has some recurring favorites that cycle on and off the menu. You might want its chicken nuggets, only to find that they are not available, which actually builds anticipation for when they get brought back.

It’s a process of endless change that keeps customers guessing while driving return visitors when old favorites make their returns. This system of near-endless innovation also drives media coverage and keeps the company visible on social media.

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Rival Chipotle  (CMG)  takes a very different approach. It very rarely changes its menu partly because its make line system has very limited room for new items.

The popular Mexican chain adds a new seasonal protein three of four times a year and generally that’s the extent of its changes. Now, however, Chipotle has a big surprise for its customers.

Chipotle has a very efficient system to hand-make every order. 

Image source: Joe Raedle/Getty Images

Chipotle adds a new sauce    

Chipotle has added Adobo Ranch, a smoky, spicy twist on America’s beloved dipping sauce to its menu nationwide.

“Made fresh in Chipotle restaurants, Adobo Ranch features adobo pepper, sour cream and a unique blend of herbs and spices, bringing a craveable kick to the brand’s signature burritos, bowls, salads, tacos and quesadillas,” the company shared in a press release.

Adobo Ranch will be available at Chipotle locations across the U.S. and Canada starting Tuesday, June 17 and Chipotle Rewards members can try it for free on launch day.

Chipotle noted that ranch has passed ketchup to become the most popular condiment in the U.S. 

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“Ranch has become a cultural phenomenon, especially among Gen Z, who are finding creative ways to enjoy it beyond the traditional salad,” said Chipotle Preisdent Chris Brandt. “Our new Adobo Ranch taps into this passion, giving fans a craveworthy way to customize their Chipotle order with a completely new flavor.”

The new Chipotle take on ranch, features only what the company describes as real ingredients and no artificial colors, flavors or preservatives.

Chipotle saw its sales slow down

While its overall results were mixed, Chipotle saw sales slow down at restaurants that have been open for over a year.

“Turning to our first quarter results. Sales grew over 6% to reach $2.9 billion, including a comparable sales decline of 0.4%. Digital sales represented 35.4% of sales. Restaurant-level margin was 26.2%, a decrease of 130 basis points year-over-year. Adjusted diluted earnings per share was $0.29, representing 7% growth over last year, and we opened 57 new restaurants, including 48 Chipotlanes,” CEO Scott Boatwright shared during an earnings call with analysts.

The CEO blamed the economy and overall negative consumer sentiment.

“In February, we began to see that the elevated level of uncertainty felt by consumers starting to impact their spending habits. We could see this in our visitation study where saving money because of concerns around the economy was the overwhelming reason consumers were reducing the frequency of restaurant visits. This drove a slowdown in our underlying transaction trends. This trend has continued into April,” he said.

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Boatwright expects these conditions to continue.

“While we can’t predict how long these consumer headwinds will last, what I do know is that the Chipotle brand has never been stronger, that we have an extraordinary value proposition that is more important than ever to focus on being guest obsessed to earn every transaction,” he added.