Chipotle's Portion Policy Leads to Mixed Results – On Avocados and Generous Servings

Chipotle faced a fair amount of criticism this year as customers complained about inconsistent portion sizes. The response? A comprehensive review of all locations to ensure that every scoop of rice is filled uniformly in the future. However, these efforts came at a cost: The company's current financial figures present a mixed picture. Although restaurant visit numbers increased and sales in comparable locations rose, revenue fell short of analysts' expectations. The costs for food and beverages climbed significantly, partly due to the realignment of portion sizes following critical comments on social media. CFO Adam Rymer explained during the release of the financial results that last year's price increase was more than offset by inflation, especially in avocados and dairy products, as well as the increased consumption resulting from the now uniform portion sizes. These factors caused the cost of sales to rise by over a percentage point. Despite these challenges, interim CEO Scott Boatwright assured that Chipotle would continue to serve generous portions. This commitment was already introduced in July by then-CEO Brian Niccol, who moved to Starbucks in August. Boatwright emphasized the importance of uniform portion sizes as a key company value. The adjustments at Chipotle followed a Wells Fargo study in June, which revealed significant differences in the weight of 75 burritos at New York locations. Jack Hartung, former CFO of Chipotle and now President of Strategy, Finance, and Supply Chain, also promised that every customer would receive at least two generous scoops of rice and four ounces of meat. Chipotle plans to offset the investments in its portion policies through efficiency improvements and innovations in the supply chain over the coming quarters. Boatwright highlighted that consumer ratings on portion sizes have already increased, as reflected on social media.