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Chipotle shareholder sues over skimpy portion sizes
  + stars: | 2024-11-13 | by ( Ramishah Maruf | ) edition.cnn.com   time to read: +3 min
New York CNN —A Chipotle shareholder is suing the fast-casual chain over viral social media complaints about skimpy portion sizes. The proposed class-action lawsuit filed Monday claims Chipotle understated customer dissatisfaction regarding its “highly inconsistent” portion sizes in official disclosures. “First, there was never a directive to provide less to our customers,” Niccol said during the earnings call. After that earnings call on October 30, Chipotle stock dipped 7.86%. The proposed class action would make eligible anyone who purchased or sold Chipotle stock from February 8 to October 29, 2024.
Persons: Keith Lee, Chipotle, ” Laurie Schalow, Chipotle’s “, Brian Niccol, ” Niccol, Niccol, Jack Hartung, Scott Boatwright, Boatwright Organizations: New, New York CNN, Starbucks Locations: New York, Wells, Chipotle’s, Chipotle
For years, customers have griped about their portion sizes at the fast-food chain, and Chipotle has vigorously defended itself. "There have been no changes in our portion sizes, and we have reinforced proper portioning with our employees," Laurie Schalow, Chipotle's chief corporate affairs and food safety officer, told Business Insider. "Yes, you can have the same customization with a digital makeline, but you are more constrained in what you can do." technically the robot but i've seen the robot referenced broadly as a "digital makeline." The analyst added that robots could be a solution for digital orders, which Chipotle has said it plans to do.
Persons: , Chipotle, Laurie Schalow, Wells, Danilo Gargiulo, Gargiulo, Daniel Fukuba, we're, Fukuba, Brian Niccol's, Chipotle's, Niccol, Fortune, de gallo, Niccol didn't Organizations: Service, Business, BI Locations: AllianceBernstein, Chipotle, San Jose , California, pico
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. In response, they're pulling out their smartphones as Chipotle employees add chicken al pastor, steak, or another one of their preferred proteins to their order. In the video, Lee samples multiple Chipotle items, including a bowl he ordered with chicken al pastor. "There have been no changes in our portion sizes, and we have reinforced proper portioning with our employees," Chipotle Chief Corporate Affairs and Food Safety Officer Laurie Schalow told Business Insider. Chipotle hasn't given employees instructions on what to do when customers start filming, a spokesperson added.
Persons: , guacamole isn't, influencer Keith Lee, Lee, fajita veggies, Chipotle, Laurie Schalow, Schalow Organizations: Service, Business, Corporate Affairs, Food Locations: Chipotle
Chipotle customers in California should brace themselves for higher menu prices this year. The law will put fast-food workers' wages up to $20 an hour from April. Minimum wages for California fast-food workers will increase to $20 an hour in April under a law signed by Gov. The new legislation, known as AB 1228, won't just bring a wage increase in April. Chipotle, which has roughly 115,000 workers, spent $2.44 billion on labor in 2023, up about 11% from the previous year.
Persons: Chipotle's, , Jack Hartung, Gavin Newsom, Hartung, Laurie Schalow, Chipotle, Chris Kempczinski, Brian Niccol Organizations: Service, Gov Locations: California,
Chipotle offered a Halloween deal for an entree for $6 online or in-app with promo code "Boorito." AdvertisementAdvertisementChipotle customers are booing the company's Halloween "Boorito" promotion after technical issues kept many of them from getting the deal. The Chipotle app also froze or crashed for many users. Chipotle has run into challenges before with its Halloween promotion, which has changed a few times over the years. Besides increasing prices over the years on its Halloween deal, which used to be free, Chipotle also recently raised its regular menu prices for the fourth time in two years.
Persons: Chipotle, , Laurie Schalow Organizations: Service
Customers order from a Chipotle restaurant at the King of Prussia Mall in King of Prussia, Pennsylvania. The company did not share how much menu prices will rise as a result of the decision. The burrito chain started hiking its menu prices in June 2021, citing the cost of rising wages for its employees. But Chipotle paused its price hikes as some customers pulled back on restaurant spending and ingredient costs stabilized. Three months later, Niccol said Chipotle would reconsider its pricing as the company's fourth quarter drew closer.
Persons: King, King of Prussia, Laurie Schalow, Chipotle, Brian Niccol, Niccol Organizations: Corporate, CNBC, of Labor Statistics Locations: Prussia, King, King of Prussia , Pennsylvania
Chipotle is raising prices again
  + stars: | 2023-10-11 | by ( Danielle Wiener-Bronner | ) edition.cnn.com   time to read: +2 min
Chipotle has been raising its prices over the past few years, citing higher costs. In June of 2021, Chipotle said it was raising prices about 3.5% to 4%. So far at Chipotle, the increased prices haven’t scared people off — clearing the way for more expensive burritos. Even companies that have seen customers pull back due to the higher prices reported higher sales, because those higher prices offset volume declines. The snack and beverage company said it increased prices globally by 11% on average, helping nudge revenue higher than analysts’ expectations.
Persons: Chipotle’s, ” Laurie Schalow, Chipotle, “ We’re, , Brian Niccol, “ We’ve, ” Niccol, — CNN’s Jordan Valinsky Organizations: New, New York CNN, CNN, PepsiCo, Bureau of Labor Statistics Locations: New York, Chipotle
It's the fourth time Chipotle has raised prices in the last two years. The increase meant some customers would pay more than $1 more for their entrees once the price increase took effect in August of the same year. Months before that, in the first quarter of 2022, Chipotle raised its prices by 4%. And Chipotle lovers sounded off in the comment section of a viral TikTok on "the downfall of Chipotle" in July. They recalled a time when their chicken burrito bowl only cost $7.99 — and longed for a taste of a Chipotle burrito from 2011.
Persons: It's, Chipotle, , Laurie Schalow Organizations: Service, US Bureau of Labor Statistics, Bell Locations: Brooklyn
A federal agency has sued the restaurant chain Chipotle, accusing it of religious harassment and retaliation after a manager at a Kansas location forcibly removed an employee's hijab, a headscarf worn by some Muslim women. After several weeks, the harassment culminated in him grabbing and partially removing her hijab, according to the complaint. Chipotle's chief corporate affairs officer, Laurie Schalow, said the company encourages employees to report concerns, including through an anonymous hotline. One night during closing in August 2021, the manager allegedly reached out and pulled her hijab partially off her head. The lawsuit claims that Chipotle violated federal civil rights law protecting employees and job applicants from discrimination based on religion, race, ethnicity, sex and national origin.
Persons: Laurie Schalow, , Chipotle Organizations: Commission Locations: Kansas, Lenexa , Kansas
Chipotle is paying more than $300,000 to settle allegations of child labor in Washington, D.C.D.C. alleges Chipotle let minors work over 48 hours a week and more than six straight days a week. Chipotle denies the allegations, but will adopt policies to comply with child labor laws as part of a settlement. Schwalb's office began the investigation in May 2022 after seeing reports alleging Chipotle violated child labor laws in other jurisdictions, according to the release. The investigation identified more than 800 potential violations of the district's child labor laws dating back to April 2020. Chipotle was previously accused of child labor law violations in Massachusetts and New Jersey.
Persons: Chipotle, Brian L, Schwalb, Laurie Schalow Organizations: Service, Washington , D.C, Washington, New Jersey Department of Labor, National Labor Relations Board Locations: Washington ,, Wall, Silicon, Massachusetts, New Jersey, Augusta , Maine
Composting has been a key part of that for Chipotle, and the fast-casual restaurant chain is expanding that focus this year. In 2023, Chipotle has set a goal to institute composting programs in at least 23% more restaurants, or approximately 234 additional locations. In certain jurisdictions, compostable products have to be fiber-based, while in others plant-based compostable products are accepted. Infrastructure is key for Chipotle, Shibata said, as there are many Chipotle restaurants in areas where there is no facility that can compost certain items. She sees more jurisdictions pushing in the direction of more composting, and said that a focus from companies like Chipotle on composting will help generate momentum.
Persons: Brandon Bell, Chipotle, Brian Niccol, Laurie Schalow, Lisa Shibata, Shibata, We've, Frank Franciosi, Franciosi, Schalow Organizations: Mexican Grill, Getty, composted, Companies, New, New York City, Seattle Locations: Mexican, Austin , Texas, Chipotle, U.S, New York, West Coast, San Francisco
Companies are increasingly linking ESG metrics to executive compensation packages. That percentage of Russell 1000 companies linking ESG goals to compensation has quickly grown in recent years, from 14% in 2020 to 18% in 2021 to 28% in 2022. In 2021, Mastercard changed its executive compensation model for its most senior executives, EVPs and above, to link their bonus structure to goals set around carbon neutrality, financial inclusion and gender pay parity. Papa John's took a similar step last year, introducing an ESG bonus incentive for eligible employees and executives for goals around enhancing diversity, equity and inclusion, environmental impact, and its broader mission around cleaner and better ingredients. "For example, if there is an ESG goal around emissions, does a director of finance have any direct oversight or responsibility for how that is achieved?"
Next year, more than 100 of the burrito chain's new locations will use all-electric equipment and some additional elements from the new design. Chipotle Mexican Grill on Tuesday unveiled a new all-electric restaurant design aimed at helping the company reach its goal of cutting greenhouse gas emissions in half by 2030. Chipotle isn't the only restaurant chain looking to its restaurants to cut down on greenhouse gas emissions. And a year earlier, its archrival, Restaurant Brands International's Burger King, revealed a new restaurant design that features solar panels. The company's goal to halve greenhouse gas emissions by 2030 is based on its 2019 baseline of 1.4 million tons of carbon dioxide equivalent across its supply chain and restaurants.
April 5 (Reuters) - Chipotle Mexican Grill Inc sued fast-casual dining rival Sweetgreen Inc in California federal court Tuesday, claiming the salad chain's new "Chipotle Chicken Burrito Bowl" violates its trademark rights. Chipotle's lawsuit said Sweetgreen's "very similar and directly competitive" bowl is an attempt to capitalize on the Chipotle brand and likely to confuse consumers. Chipotle said it suggested changing the name to something that uses "chipotle in lower-case, in a textual sentence, to accurately describe ingredients of its menu item," like a "chicken bowl with chipotle." Chipotle asked the court for an order blocking Sweetgreen from using the "Chipotle" name and an unspecified amount of money damages. The case is Chipotle Mexican Grill Inc v. Sweetgreen Inc, U.S. District Court for the Southern District of California, No.
Sweetgreen's chipotle chicken burrito bowl is the subject of a lawsuit filed Tuesday by Chipotle. The Mexican chain's complaint centers on the "chipotle-chicken burrito bowl," which Sweetgreen added to its menu last month. Chipotle's issue isn't that Sweetgreen used the word "chipotle" alone, the company said in a complaint filed Tuesday in U.S. District Court in Southern California. One example cited in the complaint shows a sign that Sweetgreen uses to promote the burrito bowl. A portion of Chipotle's complaint against Sweetgreen shows a Sweetgreen sign promoting the chipotle-chicken burrito bowl, with the word "chipotle" in all-caps and against a red background.
Sweetgreen 's stock fell 10% in morning trading Wednesday after Chipotle Mexican Grill filed a lawsuit against the salad chain alleging trademark infringement over its new "Chipotle Chicken Burrito Bowl." Chipotle filed the suit in California federal court Tuesday, less than a week after Sweetgreen launched the menu item. Chipotle said in its complaint that it sent Sweetgreen a cease and desist notice and asked the company to drop "chipotle" from the name when it heard about the Chipotle Chicken Burrito Bowl, but Sweetgreen never responded. Sweetgreen's website features the product name larger than any other identifying feature that ties it back to Sweetgreen, Chipotle argues in the complaint. In addition to asking the court for an injunction against Sweetgreen, Chipotle is also asking for the profits that Sweetgreen earns from the Chipotle Chicken Burrito Bowl.
The TikTok creator, known for reviewing fast-food staples, posted last summer about leveling up Chipotle's steak quesadilla with fajita veggies. Nathan Llorin, another popular TikToker, told Insider that it wasn't until he started eating and reviewing fast food that his videos took off. A climate message for menusIn January, research showed that labeling fast-food menus with their climate impacts swayed people away from red meat. But about 10% of customers now choose a meatless option, including Sofritas, the chain's plant-based mainstay made from tofu. Frost, the TikToker, told Insider that of all the things viewers attack her for on the platform, the environmental impact of fast food isn't among them.
The settlement is equivalent to the global revenue that Chipotle made in 15 minutes last year. The employees filed a petition to form a union last June — the first time Chipotle employees had taken that step. The payment will be split among the former location's employees, who will receive between $5,800 and $21,000 each based on their seniority, pay rate, and other factors, per the Journal. That math is based on Chipotle locations operating daily, and doesn't include locations closed on major holidays. Under the settlement, Chipotle will also offer the employees "preferential hiring" if they pursue jobs at the company's other locations in Maine.
Arizona Cardinals player J.J. Watt called out Chipotle for shrinking burrito sizes on Twitter. Some customers have been complaining about Chipotle's portion sizes for years. Pro-bowler and Arizona Cardinals defensive end J.J. Watt tweeted Sunday "Burritos have been getting smaller…," writing that he wanted to "open dialogue" with Chipotle. "We want big burritos back," he wrote, adding hashtags including "Burrito justice," "Still hungry," and "This is supposedly double meat." If its portion sizes are getting smaller, Chipotle wouldn't be the only retailer to do so.
The company, G&D Integrated, had closed the factory, saying it had suddenly lost its decade-old contract with a Japanese company, workers said. Starbucks closed multiple stores this year following union activity. Trader Joe’s, for example, abruptly closed a wine shop in the center of New York City where workers had been organizing. Demonstrators protest outside a closed Starbucks in Seattle on July 16. More than 40 percent of the stores had union campaigns, according to data from Starbucks Workers United, the union that has been organizing the workers.
Marissa Andrada is chief diversity, inclusion, and people officer at Chipotle. When Andrada, now the chief diversity, inclusion, and people officer at Chipotle, was growing up, her parents encouraged her to pursue a career in medicine. In 2020, Chipotle promoted nearly 11,000 employees, HR Dive reported, and more than 70% of the chain's general managers came up internally. In a statement provided to Insider, Chipotle Chief Corporate Affairs Officer Laurie Schalow said the lawsuit was a "dramatic overreach." Between March and September 2020, according to Chipotle, the number of employees using Chipotle's EAP and advocacy services increased fourfold.
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