Chipotle's CEO Scott Boatwright emphasized the need to market the chain as a bargain option amidst declining sales and economic anxiety. The company reported a 4% same-store sales decline and cut its growth guidance. Despite a 3% total revenue increase to $3.1 billion, traffic fell by 4.9%. Boatwright noted improving sales in June and July but attributed past declines to poor consumer sentiment. He mentioned that Chipotle is 20% to 30% cheaper than competitors and stressed the importance of effectively communicating this value to consumers.
Boatwright attributed the rough quarter, Chipotle's second consecutive sales decline, in part to rocky economic conditions leading consumers to pull back.
Boatwright claimed in the earnings presentation Chipotle is 20% to 30% cheaper than comparable fast-casual restaurants.
Boatwright added consumers have seemingly forgotten that Chipotle, compared to its fast-casual rivals, is a bargain.
Boatwright said, 'I don't think we're getting credit with the consumer today,' discussing the need to communicate value effectively.
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