Storyboard: Mex It Up

Chipotle targets a niche audience, while Qdoba goes after the mass market.

By Margaret Littman, Contributing Editor -- Chain Leader, 7/1/2005

Both are fresh-Mexican, fast-casual concepts based in Colorado, wned by QSR behemoths and banking on national expansion in the near future. But, as their new ad campaigns demonstrate, they see themselves very differently.

Qdoba Mexican Grill and Chipotle Mexican Grill both recently launched new television spots to introduce new diners to the brands.

The Chipotle spots are the inaugural TV effort for the concept and are technically not advertisements at all. Instead they demonstrate the chain’s underwriting of chef Mark Bittman’s PBS cooking show, How To Cook Everything: Bittman Takes on America’s Chefs.

“We were not anxious to get into traditional TV,” says Jim Adams, Chipotle’s marketing director. “We don’t think we need it right now. It’s expensive, and once you get into all that, it is hard to get out.” The concept has more than 20 radio spots.

Simply Simpatico
But Bill Niman, founder and CEO of Niman Ranch, the Oakland, Calif.-based supplier of much of Chipotle’s hormone- and antibiotic-free pork, knew Bittman was looking for a sponsor for his TV program who would appreciate the message of simplicity he conveys in his books and New York Times column. That minimalist approach was “simpatico” with Chipotle’s limited but high-quality product line, Adams says: “We thought this might be a good opportunity to get in front of people who care about the things we care about.”

For just $150,000, not including production costs, Chipotle was able to underwrite the show for one season. The 13 episodes started airing in April on some PBS stations and will air in other PBS markets this fall.

As would be expected with an iconoclastic brand like Chipotle, the three spots pushed the envelope for public television. The 15-second spots approvingly mock the stalwarts of PBS: BBC-style news broadcasts, Masterpiece Theatre and pledge drives. PBS approved the spots, which feature PBS employees distracted from work by Chipotle burritos.

“At first, it seemed like we were really limited,” says Jonathan Schoenberg, creative director and partner for TDA Advertising and Design, the Boulder, Colo., agency that developed the Chipotle campaign. PBS regulations prohibit an underwriter from having a direct call to action in its spots, which is usually the center of an ad campaign. In hindsight, though, Schoenberg says that PBS-style rules “would make all TV advertising better.”

“If we did not have those rules, we would not have created the same spots,” he says.

Consumer Education
Where Chipotle emphasizes Bittman-esque minimalism, Qdoba is all about choices, says Karen Guido, vice president of marketing. An evolution from the chain’s previous tagline, “Not just big burritos, big flavor,” the new campaign is built around the tagline “What are you going to love at Qdoba?”

Guido’s team called on Morey Evans Advertising, the chain’s Denver-based agency for the last four years, to create a campaign that differentiates 10-year-old Qdoba from traditional QSRs.

“Fast casual is an industry term,” Guido explains. “In many markets, we need to educate the consumer that they do not sit down for an hour and a half, but we also are not a Taco Bell, and you do not go through a drive-thru.”

With fast-paced music, the spots capture a varied, mass-market audience holding up cue cards. Interspersed with images of ingredients, the customers’ cards proclaim what they love about the chain, with terms including “steak burrito” and “fast.”

“We needed a great articulation of the notion of choice,” explains Glenn Morey, president of Morey Evans. “Choice can be executed poorly, and it can be executed well. We wanted to show that the power is in consumers’ hands.”

Because the majority of Qdoba restaurants are franchised, the franchise advisory board needed to approve the campaign and pay into an ad fund, although Guido won’t say whether that contribution is in line with industry standards of 3 percent to 5 percent of sales. New York-based TNS Media Intelligence reports that in the 12 months ending March 2005, Qdoba spent $1.8 million on advertising, not including production. That compares with $2.1 million for Chipotle for the same period. While not insignificant, these budgets are much smaller than the eight-figure budgets of many QSRs. So, Morey says it was crucial to have a straightforward campaign.

“Viewers need to understand the commercial completely within a single viewing. I think that is important when talking about a campaign not supported by a Super Bowl commercial,” Morey explains. The Qdoba spots began airing in its major markets earlier this summer.

National Interests
Both companies believe their approach will help them become the category leader. Qdoba predicts it will expand in markets as far as Anchorage, Alaska, and could reach 800 units, up from the current 215, within a few years. At almost double the size of Qdoba, Chipotle plans to open 100 units this year, and Adams sees Chipotle soon becoming a bona-fide national brand, one of the reasons the national PBS distribution was appealing.

Says Adams: “We did not necessarily do this to drive people to the restaurants. We’re a soon-to-be-national brand, and this was a good way to build brand awareness.”

“Pledge Drive” Length: 15 seconds
1. Man: Welcome back.	2. This program was made possible by a grant from Chipotle Mexican Grill.
3. We look forward to bringing you more outstanding shows like this one.	4. And remember, that you...[pledge phones drown out voice...]

“Signs” Length: 30 seconds
1. Voice-over: Want something to love? Come to Qdoba Mexican Grill.	2. No boring Spanish rice and refried beans.
3. Just hundreds of unique flavors all made fast, fresh and right in front of you.	4. Qdoba Mexican Grill. What are you going to love at Qdoba?