No matter our fast food of choice, we’ve all had the experience of feeling… under-served. Usually, we just begrudge fewer french fries and move on. But, the perception of a smaller Chipotle bowl or burrito has been so loud that the CEO had to address it with shareholders!
And, of course, it all started on TikTok…
Last Wednesday, Chipotle CEO, Brian Niccol, had to address more than profits and margins at the most recent investor call…
The CEO had to assure them there was no official company order to serve its customers less food.
“There was never a directive to provide less to our customers. 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.”
Via NPR
But, why did Brian Niccol even have to address something like this in an earnings report?
TikTok Puts the Heat on Chipotle…
A couple months ago, an onslaught of TikTok videos emerged where users showcased petite portions. And in response, Niccol made a response that failed to smooth things over with the internet…
In the viral clip, he said to simply “nod” for customers to receive more in their Chipotle bowl or burrito…
In short, the public outcry threatened its bottom line. As a result, the Mexican food chain went out of its way to clear its name.
Chipotle Bowl Controversy Sparked Company-Wide Assessment
Despite official statements, concerns were so rampant that Chipotle had to investigate all 3,500 locations to prove it. Brian Niccol elaborated on the details of the inquiry with the shareholders on the Q2 update.
According to the CEO, approximately 10% of staff needed to be “re-trained and re-coached.”
So, no. Your Chipotle bowls were not suffering from shrinkflation…
Not on a widescale basis, anyway.
Further, the performance report also showed the company’s sales were up 11% in spite of the bad publicity.
So it looks like Grant’s words ring true here…
No one thing can kill a deal.
Or, in this case, one less-than-overflowing burrito bowl.
Be Great,
GCTV Staff
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