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Chipotle CEO Scott Boatwright suggested in leaked audio that the company would start focusing on customers making more than $100,000 a year, pointing to further price increases.
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 incomes above $100,000 per year, a median household income. That gives us confidence that we can tap into that group in a more meaningful way – to drive really meaningful transaction performance in the year,” he said in the leaked audio of the call, according to Yahoo Finance.
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Chipotle CEO Scott Boatwright suggested the company would focus on customers making more than $100,000 a year. (REUTERS/Andrew Kelly/Reuters)
“What we learned is that the guest is younger, has a slightly higher income, tends to be a digital native, and their grounded purpose aligns with our North Star as a brand, around clean food, clean ingredients and lots of protein,” Boatwright also said, according to Business Insider. “We are the way they want to eat, and we’re going to respond to that in the most meaningful way.”
Chipotle has also launched a new high-protein menu to meet the demand for “clean” foods and ingredients, as well as protein-rich foods.
Chief Financial Officer Adam Rymer said on the call that consumers can expect menu prices to increase 1-2% due to rising food and labor costs.
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Chief Financial Officer Adam Rymer said consumers can expect menu prices to increase 1-2% due to rising food and labor costs. (REUTERS/Andrew Kelly/Reuters)
Boatwright later attempted to clear up the “misinformation” surrounding the chain’s pricing controversy.
He told Yahoo Finance that “60% of our consumers’ median household income is over $100,000 a year, and they are still spending in this tough economy.”
The executive added that the company plans to “target those consumers with brand innovation and menu innovation and really give them more compelling reasons to come in.”
Chipotle spokesperson Laurie Schalow also said that “prices were never mentioned” regarding the $100,000 and up cohort.
Chipotle has launched a new high-protein menu to meet the demand for “clean” foods and ingredients, as well as protein-rich foods. (iStock / iStock)
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“CEO Scott Boatwright stated during Chipotle’s earnings call last week that 60% of its customers have a median household income above $100,000, so the company sees an opportunity to attract these customers with new occasions such as group or solo dining experiences,” she said in a statement to Complex. “As this consumer population actively spends more at stores and restaurants today, Chipotle is giving them additional reasons to visit through new marketing and menu innovations and improving the digital experience for all guests.”
“Prices were never mentioned with respect to this consumer cohort, and Chipotle has taken a slow and measured approach, only increasing prices by about 0.7% in the quarter compared to the industry average of 4%,” she added.
