Chipotle has responded to customer complaints about portion sizes by increasing the servings across its establishments. After social media food critic Kieth Lee shed light on this issue, the company hopes to boost customer satisfaction.
Company’s Strategy to Address Feedback
Chipotle, hailed for its substantial burritos and bowls, recently addressed customer dissatisfaction about portion sizes. A significant portion of their restaurants, over 10%, earned negative feedback for this aspect. Chipotle is responding with a systematic review, pledging to fix these inconsistencies. Steps are underway to retrain employees at underperforming locations to meet the company’s standards for generous servings.
Discussions about this issue gained momentum after social media influencers and users voiced their concerns. Notably, influencer Keith Lee created viral content highlighting Chipotle’s serving disparities, prompting significant online discussions.
Food reviewer Keith Lee says the taste of Chipotle has changed in the last year and he also complain that his food bowl had a very limited amount of chicken….A story many customers have all experienced. In 2023 Chipotle named a restaurant after Keith to announce their collab. pic.twitter.com/yjh3ulWMGH
— Black Millionaires ® (@Blackmillions_) May 20, 2024
Impact of Rising Ingredient Costs
Despite the pressures of rising ingredient costs, Chipotle chose to maintain its focus on customer satisfaction through sizeable portion offerings. CFO Adam Rymer acknowledged these financial challenges but emphasized the importance of fulfilling customer expectations for consistency and generous servings, even amidst higher expenses for items such as avocados and dairy.
This strategic move has been positively received by Wall Street analysts. Observers suggest that combining improved portion sizes with new menu items will significantly impact customer footfall, strengthening the brand’s market position.
Chipotle brings back bigger portions after criticism from customers https://t.co/t32IOammrY pic.twitter.com/U6ztBLPAKb
— New York Post (@nypost) November 1, 2024
Chipotle’s Financial Performance
Amidst the controversy, Chipotle demonstrated resilience as it recorded an 11.1% increase in same-store sales year-over-year in the second quarter. Furthermore, each of the 52 newly launched restaurants, including one overseas franchise, played a role in this uplift, contributing not just to U.S. market growth but expanding the company’s international footprint.
Chipotle’s stock responded positively to these developments, appreciating more than 4% in after-hours trading following the company’s earnings call. This upward momentum in the stock market reflects investors’ confidence in the company’s strategic changes.
