It’s not going to be the E. coli outbreak that hurts Chipotle ultimately (although fallout there won’t be good for business either). It’s going to be fatigue, according to analysts at major investment house Deutsche Bank. To be specific, “menu fatigue” among its customers. Chipotle can probably beat back the perception that its food might be dangerous — big companies overcome these kinds of things all the time, look at Tylenol. But one mantra growing businesses need to pay attention to is “innovate or die.” Chipotle hasn’t been innovating in its kitchen, according to Deutsche Bank’s analysis.
An equally perceptive mantra is “if it ain’t broke, don’t fix it.” And that’s the mantra Chipotle seems to have been leaning on. But what if it is broke, analysts are now asking as the stock slides. The Chipotle menu is limited to four main products — burritos, bowls, tacos and salads — though each offering comes with multiple choices and pairings that lend variety. Still Chipotle’s competitors are currently seen as more innovative — and bored customers are a business’s worst enemy.
