MONEY

Chipotle will start delivering to 40 college campuses this fall

Hadley Malcolm
USA TODAY

A perennial Millennial favorite food chain, Chipotle is endearing itself to its legion of young fans this fall by delivering burritos straight to college classrooms.

Chipotle will start delivering to 40 college campuses this fall in a move to keep itself top of mind with younger customers.

Chipotle has partnered with Tapingo, a food-delivery app specifically for the college market, to deliver its burritos, bowls and other menu items to 40 college campuses, the fast-casual chain said Tuesday. It will expand to more than 100 campuses by spring.

Chipotle started offering delivery to broader markets earlier this year as part of partnerships with the services Postmates and OrderUp, but this is its first college-specific initiative. Delivery is already available at six schools, including Arizona State University and the University of Southern California, with plans to expand throughout the fall.

Chipotle said the delivery option is about staying connected with younger consumers. "Chipotle has been popular with students going back to our very first restaurant near the University of Denver, and we are always looking for ways to better engage with them,” said Mark Crumpacker, chief creative and development officer at Chipotle, in a statement.

The move is also an extension of other technology Chipotle uses to make it easier for customers to order and circumvent long lines and wait times. The chain has offered the ability to order ahead online or through its app for in-store pickup since 2009. Other major food chains have also been experimenting with technology that makes menus more accessible as they face extreme competition for customer dollars. Earlier this year, Domino's started allowing customers to order pizza simply by tweeting a pizza emoji to the @dominos account. Customers can also text a pizza emoji to a specific number.

Even struggling fast-food chain McDonald's is trying to pick up business with a delivery test in New York City that started in May. Customers can order from 88 locations through the Postmates app or online. And Taco Bell started testing delivery from 200 locations in July with the service DoorDash, also available via an app or the delivery company's website.

Given the intense competition for customers, the expansion of delivery options "makes complete sense," says Jack Russo, an analyst with Edward Jones. "It will be available at all restaurant chains sooner rather than later."

The number of visits to restaurants has been flat or declining for several years, according to a report out in June from The NPD Group, a trend that's especially pronounced among younger consumers. Those ages 18 to 24 made 33 fewer visits per person per year in 2014 compared with 2007, before the recession, NPD said. And those 25-34 have cut down the most on eating out, making 50 fewer visits per person per year in the same time period.

"Right now it's a battle for marketshare," says Bonnie Riggs, restaurant industry analyst with The NPD Group.