Addressing a social media debate, Chipotle CEO Brandon Niccol rejected claims this week that the fast-food chain has reduced portion sizes for customers, but confirmed that a handful seem to be skimping on the size of servings.
The debate started on social media, which apparently caught the eyes of executives in the company.
“There was never a directive to provide less to our customers, generous portions is a core brand equity of Chipotle, it always has been and it always will be,” Mr. Niccol told investors during a second-quarter earnings call July 24.
Based in Newport Beach, Chipotle has more than 3,500 restaurants nationwide. Mr. Niccol insisted that at least 90 percent of them are serving generous portions in every bowl or burrito.
Because of viral social media threads saying otherwise, the company evaluated its restaurants to see if the claims were true, and according to Mr. Niccol, some outliers were discovered.
“Getting the feedback caused us to relook at our execution,” Mr. Niccol said.
He said based on that the company will be focusing on restaurants that haven’t been living up to expectations, meaning the 10 percent that are falling short.
“We are committed to making this investment to reinforce that Chipotle stands for a generous amount of delicious, fresh food at fair prices for every customer every visit,” he said.
For stores not meeting expectations, the company is providing additional “training and coaching” on the correct way to make a Chipotle burrito or bowl, Mr. Niccol said.
“The thing I want to emphasize is for 90 percent of our restaurants, they’re doing business as usual,” Mr. Niccol said.
Despite the negative feedback, Chipotle’s restaurant sales are up by 11.1 percent in the second quarter of 2024 compared to the same time in 2023, according to executives.
Revenue is up by 18.2 percent to $3 billion, year over year. According to Chipotle officials, the company opened 52 company-operated restaurants between April and June of this year, including 46 with a drive-through or what the company calls a “Chipotlane.”
Beginning April 1, a new California law mandated fast food chains with 60 or more locations nationwide will have to pay workers at least $20 an hour.
