Chipotle CEO suggests targeting customers earning more than $100K, leaked audio shows

Chipotle CEO Scott Boatwright suggested in the leaked audio that the company will begin focusing on customers who make more than $100,000 a year, indicating more price increases.

During a recent earnings call, Boatwright said 60% of clients earn more than $100,000 a year and that he wants to “lean into that group in a meaningful way.”

“We’ve learned that 60% of our core users are over $100,000 a year in income, in household income. That gives us the confidence that we can lean on that group in a meaningful way – to really drive meaningful performance in annual purchases,” he said in leaked audio of the call, according to Yahoo Finance.

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“What we’ve learned is that the guest is younger, more income-driven, typically digital-native, and that their mission-based focus aligns with our North Star brand, clean food, clean ingredients, high protein,” Boatwright said, according to Business Insider. “We’re the way they want to eat, and we’re going to lean into that in a very meaningful way.”

Chipotle is also introducing a new high-protein menu to keep up with the demand for “cleaner” foods and ingredients, as well as more 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 costs.

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Chief Financial Officer Adam Rymer said consumers can expect menu prices to increase 1-2% amid rising food and labor costs. (REUTERS/Andrew Kelly/Reuters)

Boatwright later tried to clear up the “misinformation” surrounding the series’ price controversy.

He told Yahoo Finance that “60 percent of the average consumer’s 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 in on those consumers with innovation, menu innovation and give them compelling reasons to come in.”

Chipotle spokeswoman Laurie Schalow also said “prices have never been specified” for the $100,000 and up group.

Chipotle has introduced a new high protein menu to keep up with the demand for “cleaner” foods and ingredients, as well as more protein. (iStock / Stock)

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“CEO Scott Boatwright said on Chipotle’s earnings call last week that 60% of its customers have a median income of more than $100,000, so the company sees an opportunity to tap into these customers for new occasions as a group or solo diner,” he said in a statement to Complex. “As this number of consumers spend more in stores and restaurants today, Chipotle is giving them more reasons to visit by innovating menu items, as well as improving the digital experience for all guests.”

“Prices have never been the norm for this consumer group, and Chipotle has taken a slow and measured approach by raising prices this quarter by about .7% compared to the industry average of 4%,” he added.