Chipotle CEO Addresses Portion Size Criticism with Retraining Plans

Chipotle's CEO, Brian Niccol, has announced a strategy to "retrain" and "re-coach" restaurant operators in response to mounting criticism regarding inconsistent portion sizes. During a recent investor call, Niccol emphasized that providing generous portions is a fundamental aspect of Chipotle's brand identity. This announcement comes after a wave of social media complaints where customers documented smaller portion sizes in their orders, leading to increased scrutiny of the company's practices. In previous statements, Niccol had denied any reduction in portion sizes, asserting that they remain consistent. However, he has since acknowledged the existence of discrepancies, particularly highlighted by a Wells Fargo analyst who noted significant variations in burrito and bowl sizes across different New York City locations. Niccol indicated that approximately 10% of Chipotle's 3,500 restaurants would undergo retraining to align with the company's standards for portion sizes. To ensure consistency, Niccol mentioned that the company is focusing on restaurants identified as outliers based on consumer feedback. He expressed confidence that the retraining efforts would enhance the customer experience, stating that the best marketing would come from positive word-of-mouth rather than formal advertising campaigns. Despite the recent challenges, Chipotle reported strong financial performance in its latest quarterly report, revealing an 18.2% increase in total revenue compared to the same period last year, alongside an 8.7% rise in transactions and a 2.4% increase in average spending per transaction.