In addition to facing customers’ alleged reduced portion size scandal, Chipotle encounters another challenge.Ā
The burrito chain can’t seem to catch a break. It has now become a victim of the uncertain state of the economy, which has prompted consumers to be more cautious with their money.
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However, the fast food chain’s CEO has found a solution to this new challenge, claiming it can be fixed with a simple smile.
Related: Chipotle CEO sounds alarm on concerning customer behavior
Chipotle reported its earnings for the first quarter of 2025 on April 23, and the results were weaker than anticipated.
Restaurant transactions were down 2.3% year over year, and although total revenues were up by 6.4% to around $2.9 billion, it still didn’t meet analysts’ average expectations of $3.1 billion.
The results were so underwhelming that Chipotle’s stock fell 2% during extended trading hours on April 23 and has declined nearly 17% in a year.
A Chipotle worker smiles while serving a busy line of customers.
Image source: Joe Raedle/Getty Images
Chipotle unveils its new ‘guest-obsessed’ growth strategy
Chipotle has focused on food quality, value, efficiency, and innovation to boost the company’s growth over the last few quarters. However, its CEO, Scott Boatwright, believes delivering exceptional hospitality should be implemented further to bring the business back on track.
Last year, ChipotleĀ (CMG) Ā conducted a problem detection study across its restaurants, discovering that the in-restaurant staff is not as friendly as it should be and that consumer recovery is not handled well.
Related: Chipotle fans skeptical of its latest restaurant move
To address these customer-centered issues, Boatwright unveiled Chipotle’s new “guest-obsessed” growth strategy. This strategy aims to keep customers returning more often, despite the current slowdown in consumer spending.
“We laid out specific actions to be accomplished in our restaurants that will not interrupt our focus on throughput. This includes a friendly smile at Tortilla, a heartfelt thank you from our cashier, clean dining rooms and drink stations, and great guest on-site recovery for any issue,” said Boatwright in an earnings call. “The fact is, smiles down the line do not slow us down,” he added.Ā
These new training tools have been implemented across nearly all of its restaurants, ensuring guidelines are followed. Boatwright claims these changes have already improved the business as refunds and cost of care have dropped, and consumer perception has improved overall.
Customer-centric growth strategies trend among the top fast-food chainsĀ
This guest-focused strategy seems to be a trend among multiple fast-food chains, as they haveĀ implemented guidelines to make staff more personable when serving customers.Ā
Chick-fil-A is one of the first chains to pioneer the ‘friendly staff’ strategy. For decades, it has trained its employees to say “my pleasure” after taking orders and handing out meals to create a more hospitable experience.Ā
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However, Chipotle might have also adopted some ideas from its former CEO Brian Niccol.
Since taking over as the new CEO ofĀ StarbucksĀ (SBUX) ,Ā Niccol has emphasized the need to bring the company back to its roots by focusing on its core products and personalizing the coffee shop experience like it once did.Ā
Among many recent changes and improvements, the coffee chain reestablished the requirement that all its baristas write handwritten notes on to-go cups and bags and do personal food and beverage handoffs to foster better customer connections, which Niccol claims has already improved business.
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