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Home » Chipotle CEO says the company will absorb increased costs from tariffs
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Chipotle CEO says the company will absorb increased costs from tariffs

Leslie StewartBy Leslie StewartMarch 2, 2025No Comments3 Mins Read
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President Donald Trump’s plan to impose tariffs on America’s biggest trading partner is to ripple the US economy as businesses and consumers prepare to pay in a similar way

However, for Chipotle customers, it seems for the moment that voyages at the checkout register will be smoother.

In an exclusive interview with NBC Sunday Nightly News, Chipotle CEO Scott Boatwright told Anchor Hallie Jackson that for now, Burrito providers intend to keep consumer costs constant even as some of the costs of the product rise.

“It’s our intention to sit here today to absorb these costs,” he said, but he warned that price changes could ultimately occur if pricing changes were to become “significant headwinds.”

In most cases, Chipotle is insulated from many costs implied by the types of tariffs proposed by Trump, and will set up a 25% mission in Canada, Mexico following next week, with an additional 10% duties from China, in addition to the 10% tax imposed earlier this month.

Boat Light previously shows that Chipotle has won about 50% of the avocado from Mexico, with the rest coming from Colombia, Peru and the Dominican Republic. Everything estimates that Boatwright estimates that on a rolling basis from planned tariffs, the cost of the goods will increase by 0.6% or 60 basis points.

“We are lucky to have such an extraordinary economic model at Chipotle, to withstand these types of inflationary pressures and not have to pass those costs on to consumers,” Boat Wright told Jackson.

“That’s what we’re trying to do this year. If the rates are temporary, and if they’re permanent, then we don’t know how sticky they’ll be to the new administration, so let’s keep the pricing constant.

He continued. And once again, go back to the idea of ​​providing exceptional value to consumers. Maintain the course. ”

I realized that Chipotle is like a transition period. In August, Starbucks led longtime Chipotle CEO Brian Nicole to the coffee giant. Since then, Chipotle’s stocks have collapsed, warning in February that the rest of 2025 would prove a volatile year. Sales growth is slower than analysts wanted.

However, Boatlight told Jackson that he remains bullish on the company’s property, noting that more than 300 new locations are planned.

“If we can keep prices constant regardless of what is happening with inflationary pressures, we will give consumers a wealth of what is happening with global economic uncertainty, and diversity with healthy, fresh ingredients that are nowhere else to be found. That’s how we can provide value to our consumers in 2025.”

Boat Light also discussed its new AI tool, Ava Cado, designed to screen job seekers.

“Ava now takes all the work from the manager’s hands,” he said. “Candidates respond directly to AVAs, and she qualifies them, loads resumes or applications, simply shows up in scheduled timeslots, interviews with candidates and schedules interviews with managers that will enter the workflow.”

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Leslie
Leslie Stewart

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