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Chipotle CEO Scott Boatwright suggested in leaked audio that the company would start focusing on customers who earn more than $100,000 a year, indicating more price hikes.
During a recent earnings call, Boatwright said 60% of customers make more than $100,000 a year, and he wants to “lean into that group in a more meaningful way.”
“We learned that 60% of our core users have more than $100,000 in annual revenue, in median household income. That gives us confidence that we can lean on that group in a more meaningful way, to really drive meaningful transaction performance for the year,” he said in leaked audio of the call, according to Yahoo Finance.
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Chipotle CEO Scott Boatwright suggested the company would start focusing on customers who earn more than $100,000 a year. (REUTERS/Andrew Kelly/Reuters)
“What we’ve learned is that the guest is younger, a little higher income, typically a digital native, and their grounded purpose aligns with our North Star as a brand, around clean food, clean ingredients, and high protein,” Boatwright also said, according to Business Insider. “We’re the way they want to eat, and we’re going to approach that in the most meaningful way.”
Chipotle has also launched a new protein-rich menu to meet the demand for “clean” foods and ingredients, as well as high protein.
Chief Financial Officer Adam Rymer said on the call that consumers can expect menu prices to rise 1 to 2 percent amid rising food and labor costs.
Chief financial officer Adam Rymer said consumers can expect menu prices to rise by 1 to 2 percent amid rising food and labor costs. (REUTERS/Andrew Kelly/Reuters)
Boatwright later tried to clear up the “misinformation” surrounding the chain price dispute.
He told Yahoo Finance that “60% of our consumers’ median household income is over $100,000 a year, and they’re still spending in this tough economy.”
The executive added that the company plans to “lean into those consumers with brand innovation, menu innovation and really give them more compelling reasons to come in.”
Chipotle spokeswoman Laurie Schalow also said there was “never any mention of price” regarding the $100,000 or more cohort.
Chipotle has launched a new protein-rich menu to meet demand for “clean” as well as high-protein foods and ingredients. (iStock/iStock)
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“CEO Scott Boatwright stated on Chipotle’s earnings call last week that 60% of its customers have an average household income of more than $100,000, so the company sees an opportunity to reach out to these customers with new occasions like group or solo dining experiences,” he said in a statement to Complex. “As this consumer demographic spends more actively in stores and restaurants today, Chipotle is giving them additional reasons to visit through new marketing and menu innovations, and by enhancing the digital experience for all guests.”
“Price was never mentioned for this cohort of consumers, and Chipotle has taken a slow and measured approach by only raising prices this quarter by about 0.7% compared to the industry average of 4%,” he added.
