The Value Of Drive-Thrus
Commercial real estate's next frontier: the car?
By Alexis Cortez
Published Apr 14, 2023
By Alexis Cortez
Published Apr 14, 2023
Experts across the industry have been attempting to predict the next big thing for years. It might be a while until we truly see the next “big thing” in commercial real estate, but one thing we can say for sure: Online shopping is here to stay. From clothing to groceries, or furniture to food, almost every brand has an app or website that enables shoppers to buy from the comfort of their homes. As the industry adjusts to these new shopping patterns, it's clear that some retailers are taking these new challenges head-on.
Chipotle has a little under 3,000 locations in the United States, with the most locations - 456 - in California, 280 locations in Texas, and 228 locations in Ohio. While those might be the biggest markets for the company, the next phase for the restaurants seems to be with their “Chipotlanes” concept, otherwise known as the drive-thru Chipotle. These new restaurants aren't Drive-thru only, or DTO, so you can still go into the store and order like normal.
Chipotle hasn't ventured into the DTO concept like so many others quite yet. These locations are still centrally located, but with less space dedicated to the dining and parking areas. These drive-thrus are digitally optimized, so customers can order through their app, or on the website, and pick up their meal all from the comfort of their car. So this brings up the question: Is the next frontier for commercial real estate… a car?
This beloved burrito brand has by far the most locations in California. In San Diego, the Chipotlanes location in La Mesa is bringing in about 61,000 visitors a year, compared to the next closest regular Chipotle location, which is bringing in about 42,000 visitors yearly. These two locations are close to San Diego State University, which has a population of about 33,00 students, as well as additional staff. The surrounding city - La Mesa - has a population of about 60,000 people and a median age of 35.8 years. The perfect audience for Chipotle, and an even better location for them, since this store is located right off the highway, near the university, and in a well-trafficked center.
The streets near each Chipotle location could not be more different, with the regular Chipotle averaging around 20,000 - 30,000 cars per day, while the Chipotlanes location averages anywhere from 10,000 to 90,000 cars per day. Of course, due to the highway, there are some inflated numbers that need to be accounted for in order to assess the difference properly, but this gives us a good understanding of the traffic flows in the market.
This is just the first of certainly many innovations from Chipotle, but it has already taken off. Frequent customers already use the app for benefits, rewards, and convenience. Why not help them out even more? Chipotle is not the only brand introducing this type of store functionality, with other brands taking advantage of loyal customers and viral videos. This is a trend we've already talked about here, and we expect to see much more of it in the hopefully very near future! •
Last Modified Apr 14, 2023
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