Chipotle Faces Sales Slump and Deepening Employee Crisis in 2025
Chipotle Faces Sales Slump and Deepening Employee Crisis in 2025
Chipotle is facing significant headwinds in 2025, with same-store sales declining for two consecutive quarters and its stock plummeting 37% since December last year. This financial downturn comes as the fast-casual giant grapples with mounting employee dissatisfaction and a perceived decline in its once-lauded workplace culture. During an April 2025 earnings call, CEO Scott Boatwright even acknowledged cleanliness issues in some restaurants and urged employees to be friendlier, highlighting internal concerns.
Current and former employees paint a grim picture of Chipotle’s operational shift under recent leadership, moving away from its original focus on quality training and employee value. Workers report chronic understaffing, leading to chaotic shifts, increased injuries, and compromised food safety. Training quality has reportedly deteriorated, leaving new hires unprepared, while erratic scheduling practices leave three-quarters of employees with less than two weeks’ notice. These issues have contributed to a high turnover rate, which, while slightly down to 131% last year, remains significant.
The company’s labor practices have drawn official scrutiny, including a record $20 million settlement in New York City in 2022 for worker protection violations and a $2.9 million settlement in Seattle last year. Chipotle also remains on New York City Comptroller’s ‘Employer Wall of Shame’ in 2024.
Amidst these challenges, unionization efforts have gained traction in some locations. While a Lansing, Michigan store successfully unionized in 2022, it has yet to secure a contract. Other attempts, like those in Augusta, Maine, and Lawrence, Kansas, faced strong company opposition, including the permanent closure of the Augusta store and allegations of retaliatory firings. Federal National Labor Relations Board charges against Chipotle for unfair labor practices are still open.
As Chipotle plans to open over 300 new locations this year, its ability to address these deep-seated employee grievances and reverse its recent financial slide will be critical for its future success and brand reputation.
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