Additional Coverage:
- Popular fast food chain is hiking prices again and still confident about customer loyalty (marketrealist.com)
Chipotle Confirms Another Price Hike, CEO Clarifies Stance on Customer Base
[City, State] – Fast-casual giant Chipotle Mexican Grill announced on February 3rd that it will be implementing another round of menu price increases, following several adjustments over the past few years. The move comes as the company navigates ongoing inflationary pressures, though officials remain optimistic about customer retention.
Chipotle’s Chief Financial Officer, Adam Rymer, indicated that the company’s profit margins would be “under pressure” due to their efforts to keep price increases below the current inflation rate. Rymer stated that menu prices are expected to rise by 1% to 2%, while inflation is projected to hover between 3% and 4%. He anticipates that margins will begin to stabilize by the end of 2026.
Despite the impending price adjustments, CEO Scott Boatwright expressed confidence in the loyalty of Chipotle’s core customer base. According to Fortune, Boatwright believes these patrons will continue to support the brand due to its commitment to “clean foods.”
During a recent earnings call, Boatwright elaborated on the company’s customer demographics, noting that 60% of Chipotle’s customers earn over $100,000 annually. He stated the company plans to “lean into that group in a more meaningful way.”
Boatwright described this segment as typically younger, higher-income, and “digital native,” with values aligning with Chipotle’s “North Star” around clean food, high protein, and quality ingredients. “We are the way they want to eat,” Boatwright remarked during the call, as reported by Yahoo Finance.
However, Boatwright’s comments sparked a swift backlash, with some customers interpreting them as an attempt to position Chipotle as an exclusive brand for high-income earners, potentially alienating everyday patrons.
In response to the criticism, Boatwright clarified his remarks in an interview with Yahoo Finance, attributing the controversy to “misinformation.” He reiterated that the 60% figure refers to the average household income of their consumers, emphasizing that these customers “are still spending in this tough economy.”
He added that Chipotle aims to engage these consumers further through “brand innovation, menu innovation, and really give them more compelling reasons to come in.” Furthermore, Boatwright expressed an expectation of increased spending from customers earning under $100,000, anticipating a “nice bump after tax season.”
Chipotle spokesperson Laurie Schalow echoed this sentiment, telling Complex that “pricing was never mentioned” in relation to the $100,000-plus income bracket. Schalow explained that since this demographic is actively spending more at restaurants, Chipotle is focused on providing them with “additional reasons to visit through new marketing and menu innovations, and enhancing the digital experience for all guests.”
This strategy appears to align with broader market trends. A 2025 International Food Information Council study revealed that 70% of Americans are looking to increase their protein intake.
Chipotle launched its “first-ever” high-protein menu in December, and Boatwright reported strong initial results to investors during the February earnings call. “We are the way they want to eat,” he reiterated.