President Donald Trump’s plan to impose tariffs on America’s largest trading partners is causing a stir in the U.S. economy. Businesses and consumers are bracing themselves for potential price hikes. However, for patrons of Chipotle, there seems to be a silver lining at the checkout counter. In an exclusive interview with the Sunday edition of “NBC Nightly News,” Chipotle CEO Scott Boatwright revealed that, at least for now, the popular burrito chain is committed to maintaining consistent prices for its customers, even as some of its input costs rise.
Boatwright stated, “It is our intention, as of today, to absorb those costs,” although he did mention that adjustments to pricing could be on the horizon if heightened costs become a significant challenge. Fortunately, Chipotle is somewhat shielded from the potential impacts of the tariffs proposed by Trump, which include 25% duties on imports from Canada and Mexico, as well as an additional 10% on goods from China in addition to the 10% levy imposed last month.
Boatwright previously disclosed that Chipotle currently sources roughly 50% of its avocados from Mexico, with the remainder coming from Colombia, Peru, and the Dominican Republic. He estimated that the cost of goods could see a 0.6% increase due to the planned tariffs. “We are fortunate to have a robust economic model at Chipotle that can weather such inflationary pressures without passing the burden onto consumers,” Boatwright reassured.
He further explained, “Our goal for this year is to maintain pricing stability, considering the uncertainty around the tariffs – whether they are temporary or here to stay under the new administration.” Boatwright emphasized the company’s commitment to providing exceptional value to consumers by avoiding passing on increased costs permanently.
Despite facing some challenges, including a decline in share prices following the departure of longtime CEO Brian Niccol to Starbucks, Chipotle remains optimistic. Boatwright shared plans to open over 300 new locations, underscoring the company’s dedication to delivering abundant variety and fresh, wholesome ingredients unmatched by competitors to ensure consumer satisfaction in 2025.
Additionally, Boatwright discussed the introduction of a new AI tool called Ava Cado, aimed at streamlining the job application process. “Ava simplifies the screening of job applicants, alleviating the burden on managers,” he explained. “Candidates interact directly with Ava, who assesses their qualifications, uploads resumes or applications, and schedules interviews for managers, streamlining the recruitment process.”
