Chipotle is releasing its first new dip in five years
Chipotle is tapping into America's seemingly never-ending obsession with ranch dressing.
Beginning June 17, the chain is permanently adding Adobo Ranch to its menu. The dip, a variation on classic ranch, is seasoned with adobo pepper, sour cream and other herbs and spices that Chipotle says will give its food a 'craveable kick,' the company announced Monday.
The addition of Adobo Ranch is the first time Chipotle has added a new dip in five years. In 2020, the chain rolled out a reformulated queso, which immediately boosted sales. The company is likely hoping for the same success as it deals with a slowdown in consumer spending.
Sales fell during the first three months of the year, which Chipotle says is due to customers cutting back restaurant visits over concerns about the economy, echoing other chains' concerns. Chipotle (CMG) shares are down 12% for the year.
Ranch, in particular, is popular among younger eaters and has increasingly appeared on more menus in recent years. Taco Bell added a spicy ranch created with Hidden Valley to accompany its crispy chicken nuggets, KFC features five ranch flavors at its new Saucy concept restaurant and Burger King once offered an 8-ounce ranch dipping cup.
Chipotle acknowledges that ranch has 'become a cultural phenomenon, especially among Gen Z, who are finding creative ways to enjoy it beyond the traditional salad,' Chris Brand, the company's president and chief brand officer, said in a press release.
Ranch also is well-known to consumers, giving them 'permission to experiment,' according to Maeve Webster, president of consulting firm Menu Matters. She adds that it's a sauce everyone is familiar with so 'that fear of wasting money, wasting time, or just generally not enjoying an experience will be mitigated.'
Adobo Ranch will be available at Chipotle's US and Canada restaurants, and will be offered to members of its rewards program for free on launch day.
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