Chipotle brings back bigger portions after customer backlash

Chipotle said it has consistently offered “generous portions” in an effort to satisfy customers who complained on social media that they were skimping on their serving sizes.

Interim CEO Scott Boatwright told analysts Tuesday that the proof is on the company’s social media platforms, where he said people are “posting big burritos, big bowls and really excited about the share they’re getting in the Chipotle brand “.

Boatwright said it’s a “reverse of what we saw earlier in the year” when many TikTok users began sharing videos of workers assembling their Chipotle bowls, constantly asking for extra toppings.

“We know we’re delivering value to the consumer, especially in this really tight environment, and we’re going to continue to build on that,” he said.

CFO Adam Rymer also told analysts on Tuesday that the company had higher ingredient usage in the previous quarter due to its focus on “providing consistent and generous portions.”

However, the company also faced higher costs for some items, most notably avocados and dairy, according to Rymer.

However, Wall Street saw it as a smart play, with many firms raising their price targets on the stock.

CFRA Senior Vice President of Research Arun Sundaram said the company “basically had no choice [but] to increase portion sizes given the backlash it received across social media.”

Sundaram went on to say that larger portion sizes should increase store traffic, along with initiatives like new limited-time offers.

Former CEO Brian Niccol began addressing the issue in July, shortly after customers first aired frustrations on social media, saying there was “never a directive to under-deliver to our customers”.

He added that generous portions have always been a key brand equity of the fast-casual restaurant chain.

Amid the criticism, Wells Fargo analyst Zachary Fedam began logging data from various Chipotle orders.

Fedam, along with other finance professionals, ordered and weighed 75 similar burrito bowls at eight locations in New York City.

They also tested the difference between online and in-store orders.

Based on the data, the smallest bowl ordered weighed 13.8 ounces and the largest weighed 26.8 ounces.

That said, consistency varied greatly, with some locations serving bowls weighing ~33% more than other locations (with equivalent orders); and the heaviest digital/in-store bowls weighing 87%/47% more versus the lightest,” the report said.

FOX Business’ Sydney Borchers contributed to this report.