Chipotle CEO Scott Boatwright suggested in leaked audio that the company would begin focusing on customers who make more than $100,000 per year, indicating further price hikes.
During a recent earnings call, Boatwright said 60% of customers earn more than $100,000 a year and that he wants to “lean into that group in a more meaningful way.”
“We learned that 60% of our core users are over $100,000 a year in income, in average household income. That gives us confidence that we can lean into that group in a more meaningful way — to really drive meaningful transaction performance in the year,” he said in leaked audio of the call, according to Yahoo Finance.
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“What we’ve learned is the guest skews younger, a little higher income, is typically a digital native, and that their grounded purpose aligns with our North Star as a brand, around clean food, clean ingredients, high protein,” Boatwright also said, according to Business Insider. “We are the way they want to eat, and we’re going to lean into that in the most meaningful way.”
Chipotle has also launched a new high protein menu to match the demand for “clean” food and ingredients, as well as high protein.
Chief Financial Officer Adam Rymer said during the call that consumers can expect menu prices to increase 1-2% amid rising food and labor expenses.
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Boatwright later attempted to clarify the “misinformation” surrounding the chain’s pricing controversy.
He told Yahoo Finance that “60% of our consumers’ average 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 spokesperson Laurie Schalow also said “pricing was never mentioned” regarding the $100,000 and over cohort.
“CEO Scott Boatwright stated on Chipotle’s earnings call last week that 60% of its customers have an average household income over $100,000, so the company sees an opportunity to lean into these customers with new occasions like group or solo dining experiences,” she said in a statement to Complex. “Since this consumer population is actively spending more at shops and restaurants today, Chipotle is giving them additional reasons to visit through new marketing and menu innovations, and enhancing the digital experience for all guests.”
“Pricing was never mentioned regarding this consumer cohort, and Chipotle has taken a slow and measured approach by only increasing prices in this quarter by around .7% compared to the industry average of 4%,” she added.
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