Chipotle CEO pledges chain will serve "generous portions"
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An employee prepares a burrito bowl at a Chipotle Mexican Grill restaurant. Photo: Luke Sharrett/Bloomberg via Getty Images
Chipotle says it's reemphasizing "generous portions" across its restaurants after online backlash that some workers were skimping on serving size.
Why it matters: Consumers have been fighting back about "shrinkflation" where businesses raise the price of items and reduce sizes.
- Boxes of cereal have shrunk and there are fewer servings in bags of chips, for instance.
Driving the news: There have been a barrage of social media posts and TikTok videos about Chipotle's portion sizes for several months, which Chipotle CEO Brian Niccol addressed during an earnings call Wednesday.
- "First, there was never a directive to provide less to our customers," Niccol said. "Generous portion is a core brand equity of Chipotle. It always has been, and it always will be."
- "With that said, getting the feedback caused us to relook at our execution across our entire system with the intention to always serve our guests delicious, fresh, custom burritos and bowls with generous portions," Niccol said.
Between the lines: Niccol said the company is "reemphasizing training and coaching around ensuring we are consistently making bowls and burritos correctly" to be more consistent across its 3,500 restaurants.
- The changes should affect about 10% of the chain's restaurants, Niccol said, noting it was "business as usual" for 90% of restaurants.
- "We'll invest in it, and we'll figure out how to make sure we consistently do it every time," he said.
What's next: Jack Hartung, Chipotle's chief financial officer, said in an interview that the company found about 10% to 15% of its restaurants were getting a "disproportionate number of comments about portion sizes," Bloomberg reported.
- Doubling down on training to meet Chipotle standards such as including two generous scoops of rice and four ounces of meat will cost the company an extra $50 million, Hartung said.
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