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Chipotle gift card program to support health-care workers through the coronavirus epidemic

Chipotle CEO on efforts to support health-care workers through pandemic
VIDEO2:0802:08
Chipotle CEO on efforts to support health-care workers through pandemic

Chipotle Mexican Grill is developing a gift card program to help customers show their appreciation for those on the front lines of the war with the coronavirus.

CEO Brian Niccol told CNBC's Jim Cramer on Thursday that a portion of what patrons spend on gift cards can go to supporting "health-care heroes" who are working in hospitals to care for COVID-19 patients.

"People that purchase these gift cards will be able to give 10% of those proceeds, roughly, to health-care organizations that are supporting these individuals," he said in a "Mad Money" interview. "So that's in the works, and I think that'll probably be the easiest way where all of us can come together to continue to support the folks that really are just doing heroic things right now."

Niccol did not say when the donation drive will be made available or any further details regarding the initiative. The suggestion came on the same day that global cases of COVID-19 surpassed the 1 million mark. More than 242,000 have been diagnosed with the infection in the United States.

The restaurant chain announced earlier this week, in honor of National Burrito Day April 2, that it would deliver free burrito boxes to hospitals to thank health-care workers for their critical efforts during the coronavirus outbreak. Starting Monday, Chipotle will distribute 100,000 burritos during World Health Worker Week, according to a press release. DoorDash will handle delivery services.

On top of a shortage of supplies, including personal protective equipment, hospital staff are dealing with an influx of coronavirus patients. Government officials have ordered social distancing measures and businesses to close during the pandemic to stop the spread of the deadly virus, hoping to reduce pressure on overwhelmed hospitals.

Health officials have called for hospital systems to expand their bed counts and put elective surgeries on hold. Nurses are also now in short supply.

In New York, the epicenter of the epidemic in the U.S., Gov. Andrew Cuomo requested that health-care workers across the nation descend on the state to help in the fight against coronavirus. New York state has more than 92,500 cases as of Thursday evening, including more than 51,800 cases in New York City, according to data from Johns Hopkins University.

Outside of the hospitals, the restaurant industry is feeling pain from stay-at-home orders by multiple states, which have shifted consumer spending from eating out to eating in. Eateries have been allowed to continue delivery and take-out services, but the mandates have weighed on their bottom lines.

Clarification: This story was updated to clarify that Chipotle will be delivering the free burrito boxes to health-care workers during the week beginning April 6.

Chipotle CEO talks sourcing, delivery, bonuses and supporting hospitals amid coronavirus outbreak
VIDEO8:5108:51
Chipotle CEO talks sourcing, delivery, bonuses and supporting hospitals during COVID

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