Innovation and efficiency is a tough trade-off, but the company is making it work
Whether you think shrinkflation is real or not, its perception vs. reality and when a brand is tagged with that moniker, they either shrug it off or get up off the mat and come back swinging. Chipotle has opted for the latter.
During Chipotles recent Q2 2024 earnings call, the companys CEO Brian Niccol addressed the shrinkflation accusations that have built up speed on TikTok lately. And what a firestorm that was!
In some of those accusatory posts, TikTokers went further than most sensible consumers would by recording Chipotles order builders with their phones, daring them to try and put a smaller dollop of guacamole on their burrito than they expect.
'Ok, well show you!'
Unknowingly, those TikTokers may have actually done other Chipotle customers a favor not to mention given the chain a golden opportunity to look good against their allegations.
There was never a directive to provide less to our customers. Generous portions [are] a core brand equity of Chipotle. [They] always [have] been, and always will be, Niccol fired back. With that said, getting the feedback caused us to relook at our execution across the entire system with the intention to always serve our guests custom burritos and bowls with generous portions. And, apparently, at no extra cost. Take that, TikTok'ers!
He did note, however, that there were a few outliers the company needed to have a heart-to-heart with locations where portion scores took a hit on consumer surveys. Niccol quantified that statement, saying that approximately 10% of the chains 3,500 restaurants suffered from those lower scores.
'Reemphasizing training and coaching'
We are reemphasizing training and coaching around ensuring we are consistently making bowls and burritos correctly, he said. We have also reemphasized generous portions across all of our restaurants, as it is a core brand equity of Chipotle We really needed to train up roughly 10% of the system.
Niccol said that the company is wed to making this investment in portion control, but held back on exactly what that means. His CFO, Jack Hartung, tried to explain the trade-off, saying that the investments Chipotle makes to guarantee generous portions will be balanced by efficiencies and innovation.
Apparently, whatever their boardroom pondering is, its working some magic. Niccol said the initiatives and investments are already starting to pay off and customers are pivoting back towards trusting the brand with their choice of where to eat.
Were already beginning to see our actions positively reflected in consumer scores and our value proposition remains very strong, he said.
Im already seeing it in social media, people commenting on the burritos and bowls theyre getting. I think the best source of marketing is word of mouth as people have these experiences.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-07-26 15:25:29
