Chipotle CEO Brian Niccol announced that the company will serve bigger portions at all its restaurants following complaints on social media about smaller servings. Niccol stated that there was never a directive to provide less to customers, but the company re-evaluated portion sizes after noticing concerns on social media. About 10% of restaurants were identified as outliers and will be retrained to meet the right standards. Niccol emphasized that generous portions are a core brand equity of Chipotle and the company is already seeing positive effects on consumer scores from these actions. Earlier this year, TikTok users posted videos complaining about portion sizes, but the backlash did not negatively impact Chipotle’s business. In fact, the company reported quarterly earnings and revenue that exceeded analysts’ expectations, with higher restaurant traffic despite industry-wide slowdown. Chipotle’s stock rose in extended trading after the announcement, though it had previously slid due to investor concerns about the restaurant industry. Niccol also mentioned that demand for Chipotle’s food peaked in April and same-store sales increased by 6% in June. Despite the complaints on social media, Chipotle’s traffic to its restaurants rose by 8.7%.
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