American companies are hostage to the whims of Tik Tok

Smothered in a special sauce, the “Keithadilla" was a breakout hit for Chipotle Mexican Grill in the first quarter. It also gave the company indigestion

- CHAVIE LIEBER

The twist on Chipotle’s traditional quesadilla was invented by a popular TikTok food influencer as an off-menu “hack." Soon, the Mexican fast-casual chain was overwhelmed by custom orders. The item took longer to make and its mix of ingredients flustered workers, especially when the sauce—a combination of sour cream and chipotle-honey vinaigrette—ran out. When some staffers refused to make the off-menu item, customers began posting angry reviews online. Chipotle faced a decision: Give in to the whims of TikTok or risk losing business. The Keithadilla is now a permanent menu item. “We want to be at the pulse of culture," said Chris Brandt, the chain’s chief marketing officer.

TikTok has become an unavoidable consideration for anyone running a consumer-facing business today. Owned by Beijing-based ByteDance, the social app has proved a force in marketing and media, and helped brands monitor consumer trends. According to CEO Shou Chew, five million businesses use the platform.

For all its mind-reading insights, the platform has also become a disruptive force in research and development, upending conventional wisdom about product cycles, testing, differentiation and manufacturing.

Companies scramble to mass-produce products, or fix existing ones, based on feedback that often has a very short shelf life. It’s a gamble—one that many executives say is necessary if they want to win over younger shoppers and keep up with the competition. Even though the app faces bans in the U.S., businesses are shaping their product decisions around it. “Every single merchant and designer is looking at TikTok," said Corey Robinson, chief product officer for fashion retailer Abercrombie & Fitch, who calls the platform “a billion-person focus group."