Chipotle’s decision to serve larger portions has boosted customer satisfaction and Wall Street approval, despite facing increased ingredient costs.
At a Glance
- Chipotle addressed complaints about portion sizes after a systemwide review found over 10% of restaurants scored poorly
- The company is retraining employees at “outlier” locations to ensure proper portion sizes
- Social media posts and influencer reviews highlighted the portion size issue, gaining attention in May and June
- Despite the controversy, Chipotle’s performance remains strong with an 11.1% year-over-year increase in same-store sales in Q2
- Chipotle’s stock rose over 4% in after-hours trading following the earnings call
Chipotle Responds to Customer Complaints
In a move that has garnered praise from customers and Wall Street alike, Chipotle has taken decisive action to address complaints about portion sizes.
Finally! Have you noticed that portions keep getting smaller? We have…
The fast-casual Mexican food chain initiated a practice of offering larger servings after a systemwide review revealed that over 10% of its restaurants were underperforming in this aspect.
Scott Boatwright, Chipotle’s interim CEO, noted the positive impact of this change, stating that customers are now “posting big burritos, big bowls and really excited about portioning they’re getting in the Chipotle brand.”
This shift in customer sentiment has been particularly evident on social media platforms, where Chipotle’s generous portions are being celebrated.
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
The company has taken steps to rectify the issue at its source. Chipotle is retraining employees at the “outlier” locations to ensure proper portion sizes are consistently provided. This move comes after social media posts and a review by influencer Keith Lee in May and June brought significant attention to the portion size issue.
“We are re-emphasizing training and coaching round ensuring we are consistently making bowls and burritos correct. We have also leaned in and re-emphasized generous portions across all of our restaurants,” Brian Niccol, Chipotle’s CEO, said.
Niccol emphasized that there was never a directive to provide less to customers, stating that generous portions have always been a core brand equity of Chipotle.
Despite the portion size controversy, Chipotle’s performance remains robust overall. The company reported an 11.1% year-over-year increase in same-store sales in Q2, along with an 18.2% revenue increase. Chipotle also continued its expansion, opening 52 company-owned restaurants and one franchised restaurant overseas during the same period.
“The quarter was really spectacular,” Niccol said.
This strong performance has not gone unnoticed by investors. Chipotle’s stock rose over 4% in after-hours trading following the earnings call, indicating Wall Street’s approval of the company’s handling of the situation and its overall business strategy.
Balancing Costs and Customer Satisfaction
Chipotle’s decision to offer larger portions comes at a time when the company is facing increased ingredient costs, particularly for items like avocados and dairy. However, the company views this as a necessary investment in customer satisfaction and brand loyalty.
“We know we’re delivering value for the consumer, especially in this really tight environment, and we’ll continue to lean into that,” Boatwright said.
This approach, coupled with the introduction of new menu offerings, is expected to increase customer visits and further strengthen Chipotle’s position in the competitive fast-casual dining market.
Suddenly I feel like Mexican food…
