Chipotle Mexican Grill is serving up bigger portions in response to customer complaints, and Wall Street is eating it up.
At a Glance
- Chipotle is addressing portion size complaints after finding over 10% of restaurants scored poorly
- The company is retraining employees at “outlier” locations to ensure proper portions
- Despite the controversy, Chipotle’s Q2 performance remains strong with an 11.1% increase in same-store sales
- Chipotle’s stock rose over 4% in after-hours trading following the earnings call
- CEO Brian Niccol emphasized the company’s commitment to “generous portion sizes”
Chipotle Responds to Customer Feedback
Chipotle Mexican Grill, the popular fast-casual restaurant chain, has taken steps to address customer complaints about portion sizes. After a systemwide review revealed that over 10% of its restaurants were underperforming in this aspect, the company has begun retraining employees at these “outlier” locations to ensure proper portion sizes are served.
The controversy gained significant attention in May and June when social media posts and a review by influencer Keith Lee highlighted the issue. In response, Chipotle CEO Brian Niccol announced that all restaurants would serve larger portions.
Laurie Schalow, Chipotle’s chief corporate affairs and food safety officer, tells https://t.co/LaKO1WBr7r there have been no changes in the chain’s portion sizes, adding Chipotle has reinforced proper portioning with its employees. https://t.co/NfciPADs2M
— TODAY (@TODAYshow) May 29, 2024
Strong Performance Despite Controversy
Despite the portion-size debate, Chipotle’s performance remains robust. The company reported an 11.1% year-over-year increase in same-store sales for the second quarter. Additionally, Chipotle opened 52 company-owned restaurants and one franchised location overseas during this period.
“The quarter was really spectacular,” CEO Brian Niccol said.
This positive performance was reflected in the company’s stock price, which rose over 4% in after-hours trading following the earnings call. Investors seem to approve of Chipotle’s approach to addressing customer concerns while maintaining strong financial results.
Commitment to Generous Portions
Chipotle’s leadership has been clear about their commitment to providing generous portions. CEO Brian Niccol emphasized this point during a recent statement:
“We collectively said, look, we do not go back one inch on that equity of generous portion sizes,” Brian Niccol said.
This renewed focus on portion sizes has led to increased ingredient usage, despite higher costs for items like avocados and dairy. The company views this as an investment in customer satisfaction and brand loyalty.
Interim CEO Scott Boatwright noted a positive shift in customer sentiment, stating that social media interactions now boast of “big burritos” and “big bowls.” This change in narrative suggests that Chipotle’s efforts to address portion concerns are having a positive impact on customer perception.
Looking Ahead
As Chipotle continues to navigate this issue, the company remains focused on delivering value to consumers.
“We know we’re delivering value for the consumer, especially in this really tight environment, and we’ll continue to lean into that,” Interim CEO Scott Boatwright said.
