In a surprising revelation, fast-casual chain Chipotle acknowledged that some of its locations had been serving inadequately portioned meals. The admission came after rumors of shrunken servings circulated on social media platforms, including TikTok, where influential food reviewers shared images of small helpings. Chipotle's CEO Brian Niccol disclosed during an earnings call on Wednesday that an internal investigation found approximately 1 in 10 of the company's restaurants fell short in portion sizes, disappointing some customers.

The issue of smaller portions at Chipotle gained attention against the backdrop of two years of rising inflation, which has made consumers more cost-conscious, particularly when it comes to restaurant prices. For some, the reduced portions were difficult to accept after the chain had previously raised its prices. Frustrated customers took to social media to voice their concerns, with some claiming to have received larger meals when they filmed workers assembling their orders.

Initially, Chipotle denied changing its portion sizes, stating that there could be variability in size or weight. However, Niccol conceded that skimpy portions were indeed a problem at around 10% of the approximately 3,500 Chipotle locations. He emphasized the importance of consistent execution across the entire system, mentioning that these restaurants needed to be retrained and coached to meet the brand's standards.

Addressing the issue of portion sizes at these locations will have a financial impact on Chipotle. CFO John Hartung mentioned that the chain's higher cost of sales in the recent quarter was partly attributed to ensuring correct and generous portions at those restaurants. However, the company considers it an investment to preserve the brand's reputation for generous portions, which has been a positive aspect for years.

The situation prompted a Wall Street firm, Wells Fargo, to investigate further. Earlier this year, analysts ordered and weighed 75 identical burrito bowls from eight Chipotle locations in New York City, both online and in-store. The results revealed a significant variation in portions, with some restaurants selling bowls that weighed approximately 33% more than others.

Despite the challenge, Chipotle remains optimistic that rectifying the issue at the 10% of locations with skimpy portions will help regain customer trust. Niccol believes that positive word-of-mouth on social media can contribute to this effort. He assured investors that the majority of their restaurants, approximately 90%, continue to operate without issues, but the focus is on providing consistent portion sizes across the entire system.

Chipotle's admission of the portion size problem showcases their commitment to maintaining customer satisfaction and addressing concerns raised on social media platforms. As the chain takes steps to rectify the issue, it remains to be seen how customers will respond and whether their ongoing efforts will result in a positive impact on customer experience and brand perception.