Chipotle Looks to a Restaurant Refresh with a $50 Million Investment
DENVER, CO - Chipotle is reportedly investing about $20,000 in every restaurant for a refresh and upgrade, totalling a $50 million investment. This would be in addition to its typical $24 million per year investment ($10,000 per location) set aside by Chipotle for regular upkeep, according to MarketWatch.
The news came from Chief Financial Officer John Hartung, who held an earnings call earlier this week.
Chipotle has already allotted about $300 million in capital expenses for 2018, up from 2017’s $217 million. While a number of analysts seemed skeptical in MarketWatch’s report of this being the spark the fast casual chain would need to turn itself around, the name is still widespread and upping its involvement in its staff, image, and beyond.
In addition to the investment twice-over its usual for each restaurant, it also announced bonuses, new training programs, and expanded parental leave for its employees.
"We have always been proud of our ability to attract and retain top talent who share our passion for cooking delicious food by hand and creating an extraordinary guest experience," said Steve Ells, Founder, Chairman, and CEO, in a statement. "We're giving back to these committed, motivated, and hardworking team members who have made Chipotle what it is today."
According to the press release, Chipotle will reinvest more than one-third of its anticipated savings from tax law changes into its employees, including:
- Accelerated Training Programs. More training programs for employees, including a formalized classroom program with a dedicated faculty that will focus on a range of topics related to operational excellence and leadership.
- Cash & Stock Bonuses. Qualified hourly and salaried restaurant employees will receive a special one-time cash bonus of up to $1,000. Qualified staff employees will receive a one-time stock grant.
- Maternity/Paternity Coverage. Additional paid parental leave coverage for everyone from hourly managers to salaried employees.
- Life Insurance and Short-Term Disability. The company has added life insurance and short-term disability insurance coverage for hourly restaurant managers.
The remainder of the reinvestment will be the amount dedicated to improvement of restaurant facilities and operations.
"We have always been committed to making Chipotle a great place to work with excellent compensation and benefits," said Ells. "With these expanded offerings we're thanking our employees for their hard work and dedication to our company."
Chipotle forecasts full-year same-store sales growth in the low-single digits. AndNowUKnow will report as we look to see if this is the catalyst to Chipotle’s bouncing back.