August 28, 2018 / 1:35 PM / 2 months ago

Chipotle launches delivery service with DoorDash

(Reuters) - Chipotle Mexican Grill Inc (CMG.N) said on Tuesday it would partner with delivery service DoorDash, as the restaurant chain looks to get more people to eat its burritos and tacos, at a time when traffic at its restaurants is falling.

The logo of Chipotle Mexican Grill is seen at the Chipotle Next Kitchen in Manhattan, New York, U.S., June 28, 2018. REUTERS/Shannon Stapleton

The service is part of new Chief Executive Officer Brian Niccol’s plan to turnaround the burrito chain that has had its reputation and stock price take a hit from a series of food safety lapses.

Chipotle said diners would get free delivery on any order of $10 or more for a limited time, with delivery available in at over 1,800 Chipotle restaurants that DoorDash currently serves.

Analysts say another recent food safety incident at a Chipotle outlet in Ohio could also keep diners away from the restaurants.

Chipotle said the delivery option would be made available nationwide through its app and website, with DoorDash as the last mile delivery partner.

Niccol has also begun testing a loyalty program and new menu items as part of his turnaround efforts.

The company’s shares rose marginally in early trading on the New York Stock Exchange.

Reporting by Uday Sampath in Bengaluru; Editing by Saumyadeb Chakrabarty and Shounak Dasgupta

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