Latest news with #Boatwright
Yahoo
5 days ago
- Business
- Yahoo
From COO to CEO: The cold reality of climbing to No. 1
Scott Boatwright always aimed to be a CEO. Not just any CEO but the leader of a Fortune 500 company. That moment arrived in late 2024 when he was elevated to the top job at Chipotle after Brian Niccol left to lead Starbucks. But as Boatwright shared at the recent Fortune COO Summit, the jump from second-in-command to chief executive is less a step up and more a transformation. A CEO today has to run a great business, manage a great stock, and, ultimately, shape a lasting organizational legacy, Boatwright said. As COO, he and Niccol were a strong pairing, he said, because he focused on operations, while Niccol excelled at communicating the company's growth story to investors. One of the hardest adjustments as CEO, Boatwright admitted, is shifting from pulling the levers himself to managing outcomes through others—and doing so while building investor confidence and long-term vision. 'It's just a completely different job,' he said. Other newly minted CEOs echoed that learning curve. Howard Hochhauser, the CEO of and its former COO and CFO, stepped into the role earlier this year at the private equity-backed company. Although he'd previously served as interim chief executive, the weight of the job still caught him off guard once permanently in the role. 'Everybody wants a successful exit,' he said. 'To do that, you have to grow the company. And now I'm spending 110% of my time on growth.' At Xerox, Steve Bandrowczak stepped into the CEO role in 2023 following the sudden passing of John Visentin. He had spent five years as COO, was a seasoned CIO, and had attended numerous board and committee meetings. But once he became CEO, the stakes shifted. 'COOs drive change. COOs make cultural shifts, drive outputs,' Bandrowczak said at the Fortune COO Summit. 'The difference as a CEO is you're now the leader, the face of the company. So you've got to be able to drive the culture with shareholders, with employees, with partners, but more importantly, understanding things that you did not know, and the admission of the things that you did not know.' Bandrowczak encouraged aspiring CEOs to take governance and leadership courses to prepare for the transition to the corner office. And as a teacher of rising executives himself, he offered one consistent piece of advice: 'Get comfortable being uncomfortable.' Ruth Today's newsletter was curated by Lily Mae Lazarus. This story was originally featured on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
New York Post
10-06-2025
- Business
- New York Post
Chipotle is using AI to open new locations with astoundingly short time frame
Artificial intelligence is helping Chipotle rapidly grow its footprint, according to CEO Scott Boatwright. On Monday, Boatwright told Fortune at the outlet's COO summit that the company 'will open a new Chipotle restaurant this year almost every 24 hours' amid the chain growing at an 'exponential rate.' 'And if you think about the growth that's ahead of us and the need for highly capable, purpose-driven, value-oriented individuals is more critical today than it probably ever has been for our brand,' he said. The company's AI-powered Ava Cado hiring tool has helped shorten the time it takes Chipotle to hire new employees by roughly 75%, Boatwright said, according to the outlet. Ava Cado is part of the AI-infused hiring system that Chipotle unveiled in October 2024 through a partnership with Paradox. Ava Cado's capabilities include talking with candidates, answering their questions about Chipotle, collecting basic information, scheduling interviews for hiring managers and sending offers to candidates who are selected by managers, Chipotle has said. 3 A Chipotle restaurant is seen on March 5, 2014 in Miami, Florida. Getty Images Boatwright said faster hiring times 'not only helps us keep our restaurants staffed, but ensures we have the best talent that's available in the industry,' according to Fortune. During his summit appearance, he also said that when it came to AI, Chipotle looks to 'remove waste and expand or enhance the team member experience' rather than replacing humans, the outlet reported. At Chipotle, AI has also been deployed by the chain to entice customers back to restaurants through deals offered through its rewards program and to customize offers for customers, per Fortune. 3 Workers prepares meals at Chipotle Mexican Grill in West Bloomfield, Michigan on Thursday, January 26, 2006. BLOOMBERG NEWS There were nearly 3,800 Chipotle restaurants globally at the end of March, including nearly 3,700 across the United States, according to the company's first-quarter earnings report. The company aims to launch 315 to 345 new restaurants in 2025, Chipotle has said. During Chipotle's earnings call in April, Boatwright said 80% of those will include a Chipotlane drive thru pick-up lane. 3 Pedestrians walk past a Chipotle Mexican Grill Inc. location in New York, U.S., on Wednesday, Oct. 17, 2012. Bloomberg Chipotle generated nearly $2.9 billion in total revenue during the first-quarter, a 6.4% increase from the same three-month period last year. Its net income, meanwhile, widened to $386.6 million. Its second-quarter financial results are slated to be released in July.
Yahoo
03-06-2025
- Business
- Yahoo
Chipotle's new CEO is bringing back a missing ingredient to hit the chain's next goal—raising annual sales per store to $4 million
When Scott Boatwright joined Chipotle Mexican Grill as chief operating officer eight years ago, he worked closely with the burrito chain's founder, Steve Ells. Chipotle was laser-focused on operations at the time, as it looked to rebuild sales after a safety crisis a couple of years earlier. But Boatwright felt that there was one ingredient missing: an extra touch of hospitality. As Boatwright, CEO since last November, recalls it, Ells told him that Chipotle didn't need to be friendly, it just needed to be fast. That's changing now that Boatwright is in charge. And friendlier service is a key prong in his plan to leave his mark on a quick-service chain. 'Our team members got so focused on creating the experience efficiently that they can just forget to smile,' Boatwtright tells Fortune in a recent interview at Chipotle headquarters in Newport Beach, Calif. That doesn't mean an in-depth exchange about how your kids are doing in school, he hastens to add. But it does mean basic greetings and questions like 'What can I make fresh for you today?' or phrases like 'Thank you for spending your hard-earned money at Chipotle,' which Boatwright says do not slow employees down, but rather add a more welcoming vibe to what is after all a hospitality business. (His predecessor and former boss Brian Niccol, who decamped for Starbucks last year after a highly successful six-year stint at Chipotle, is doing something similar at the coffee-shop chain, instructing baristas to leave short personal notes on cups. But the trick, Boatwright cautions, for such touches to work is for them not to feel 'forced.') 'We're all fighting for market share, we're all fighting for dollars,' he says. And that means the right-brain skills of making customers feel welcome have to be deployed along with the left-brain skills needed for best-in-class operations. That's all the more important given that Chipotle's plan to grow includes more international expansion, notably its bold bet on Mexico, going deeper into smaller U.S. cities and trying to get more business from each of its 3,500 existing restaurants. In the 10 months since he took the reins, initially on an interim basis, Chipotle shares have barely budged, reflecint a 'wait-and-see' attitude on Wall Street. On the same day Boatwright told Wall Street investors about the smile-more campaign, Chipotle announced its plan to work with a partner to open restaurants in Mexico, the spiritual home of the burritos and quesadillas it sells. The news raised eyebrows, given that Taco Bell's attempts to conquer Mexico a few years ago flopped. Analyst Antonio Hernandez at Actinver Research wrote in a research note that 'familiarity with its ingredients does not necessarily predict success,' according to Reuters. But Chipotle's top executives insist there is place in the market for its Americanized Mexican food given its focus on freshness and high standards. 'We're not just another American fast-food place that's coming,' says chief brand and marketing officer Chris Brandt, using a term many in the industry find derogatory, preferring 'quick-service restaurant.' 'It seems a bit like a selling-ice-to-Eskimos type of thing,' he jokes. But, he says, the white space in the market for Chipotle is Mexican-esque food of a certain quality, and freshness of ingredients in a faster environment. What's more, the Mexican experiment, done in partnership with a restaurant operator, Alsea, that has extensive experience there, will tell Chipotle if and how fast it can go further afield in Latin America. Brandt and Boatwright both say they are not worried about any anti-American sentiment abroad that would affect Chipotle expansion, in light of the sparring between the U.S.'s and Mexico's governments in recent months. 'I don't know if that trickles down to brands,' says Boatwright. In addition, Chipotle plans to grow by generating more business at restaurants it already has and expanding to new markets Stateside. Last year, the average Chipotle had annual sales of $3.2 million, but chief financial officer Adam Rymer says that figure can hit $4 million in the not too distant future. (Rymer also sees the potential for Chipotle to hit 7,000 stores by expanding not only abroad but also domestically into smaller markets of say 30,000 people where restaurants like a Chili's or an Olive Garden might not go but where people might want more options than McDonald's or KFC.) As his colleague, brand chief Brandt, puts it: 'We are a real restaurant, and most places in our space are not.' This is where operations, Boatwright's area of expertise for years, comes in. Chipotle uses 53 ingredients to prepare its food and is working hard on equipment innovation to make cooking easier without affecting the final product. A produce slicer and a device to help workers cut onions quickly are just two of the changes being made to speed up production without, the executives insist, affecting quality. Boatwright would also like to see quicker food innovation and go from two limited-time-offer (LTOs in industry jargon) items a year, or a temporary additional menu item meant to stoke interest, to perhaps three. Data analytics more sophisticated than the ones it used just a few years ago have allowed Chipotle to avoid misfires with its LTOs, like the Garlic Guajillo Steak disappointment in 2022, giving Boatwright and his team more confidence to innovate. Currently, Chipotle has a hit on its hands with honey chicken bowls and burritos, a product inspired by a Nashville food trend. 'We're not adventurous at all,' says the CEO. 'We follow a very strict stage-gating process. We'll know long before its hits the market whether it's going to be successful or not.' But one thing no one should expect: lower priced items gumming up the menu. Chipotle tried that during the financial crash of 2008–2009, only to find customers yawning. 'We've seen in the past is that it really didn't lead to more visits,' says CFO Clymer. 'The market testing we've done found that people are really stuck on what it is they go to Chipotle for.' (The company was able to pass on much of the inflation in recent years to customers with little pushback, though executives say they are being careful regarding the impact of tariffs on items like avocados and Australian beef.) And so as Chipotle looks to build on its 2024 sales of $11.3 billion, and quickly reverse a same-restaurant sales decline last quarter, it has a number of levers at its disposal. But execs say they are mindful of the changes that can add to sales initially but that ultimately would damage a brand anchored in what it calls food integrity. 'When brands start trying to be everything to everyone, they lose their identity,' says Boatwright. This story was originally featured on Sign in to access your portfolio
Yahoo
14-05-2025
- Sport
- Yahoo
Annual Duck Race gets competitive for a good cause
PANAMA CITY BEACH, Fla. (WMBB) – This year's Duck Race will be one to remember, whether attendees were in the water or nice and dry outside watching. In addition to providing crucial community support, Beach Care Services also gives us an unforgettable event. 'We plan this every year. This is like my 13th year, 12th year, something like that. And we start planning this in January. So it takes from January to now. And we try to put on the best event, and a lot of bragging rights and a lot of community leaders come in, and we really enjoy having everybody help us out,' Duck Wrangler David Boatwright said. Although the best overall time wins, several of the races got personal as rivalries were tested, as you can imagine News 13's race got competitive. Although it was beak to beak, in the end, News 13's Ethan Logue took a final dive to victory. And just when you thought it couldn't get any more competitive, Panama City Beach Police Officers and Firefighters proved everyone wrong. It was a battle that audience members eagerly watched. With Panama City Beach Fire eventually extinguishing the boys and girls in blue. And while Tuesday's Duck Race was all fun and games, Beach Care Services outreach is very serious. 'It's one of my biggest loves about this, that it goes right into our own community, and everybody needs a little help sometimes. So you can apply for it at care services board and get some short-term emergency help,' Boatwright said. Anyone who missed this year's fun, don't make the same mistake next year. 'Especially if your new business is one of the best ways for you to spend some extra money and get some good local marketing for your business. So I would say, you know, this is kind of an early call to maybe get some of your business noticed next year,' Boatwright added. Referee Boatwright said they work to make the event bigger and better every year, even giving a hint that in the future they might create a designated trophy the police and firefighters can pass back and forth every year. For more information about Beach Care Services, click here. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Daily Mail
01-05-2025
- Business
- Daily Mail
Major food chain makes specific request to staff
Published: | Updated: Chipotle has made a very specific request of its staff, and bosses hope it will help the business in an economic downturn. The Mexican fast-casual has ordered its employees to smile at customers in an effort to boost its hospitality. 'The fact is smiles down the line don't slow us down,' CEO Scott Boatwright told investors during an earnings call on Wednesday. It comes as consumer sentiment is falling as fears of an imminent recession grow . Customers are keen to keep their spending in check and are therefore visiting less frequently, Boatwright told analysts. The brand is performing well on food quality and speed of service, and revenue is up 6.4 percent compared to the same time last year. However, internal analysis found 'deficiencies' in store's cleanliness, the friendliness of its staff and how restaurants follow up on customers' complaints. In response Boatwright wants Chipotle to create a 'guest obsessed' culture that keeps customers coming back. 'This includes a friendly smile at tortilla, a heartfelt thank you from our cashier, clean dining rooms and drink stations, and great guest on-site recovery for any issue,' he explained. Chipotle reported a strong start to the year with revenue reaching $2.9 billion in the first three months of the year. However, its same-restaurant sales fell 0.4 percent in the same period and transactions fell 2.3 percent, reflecting consumers cutting back on dining out. The chain plans to lure back repeat diners with a boost to customer experience rather than any cuts to its menu prices. In fact Boatwright has previously warned that if anything prices would rise following Trump's tariffs. Boatwright told analysts that the company is already making strides on elevating diners experience. Refunds as a percentage of sales and the cost of dealing with customer complaints are both down. The company is also planning to roll out more kitchen equipment to help make order fulfillment more efficient. The introduction of produce slicers, dual-sided planchas for cooking chicken and steak, three-pan rice cookers, and dual-vat fryers will begin in 100 locations in the coming months before being rolled out nationwide in the next few years. In August, Chipotle also introduced the 'autocado' a machine able to peel, stone and cut an avocado for guacamole in 26 seconds. Meanwhile, a 'digital makeline' portions up salads and bowls based on orders on the app. 'The end goal is to improve the experience for our teams by making tasks easier to execute, more efficient, faster and more consistent while maintaining our high culinary standards,' the CEO explained on Wednesday. Chipotle's plans are similar to the turnaround efforts at Starbucks. CEO Brian Niccol, who formerly held the top job at Chipotle, has asked staff to boost customer experience by writing messages on their coffee cups . However, the plans have already sparked a backlash among baristas who claim it slows down orders and feels 'forced.' Want more stories like this from the Daily Mail? Visit our profile page and hit the follow button above for more of the news you need.
