Kristen Scholer:

Welcome to another episode of the Inside the Ice House Podcast. Today we're joined by Scott Boatwright, he's the CEO of Chipotle Mexican Grill. Scott, thanks so much for joining us inside the Ice House.

Scott Boatwright:

Thank you, Kristen. Happy to be here today and happy to talk about our great brand.

Kristen Scholer:

When you look at Chipotle in the present day, opening its 4,000th restaurant in Manhattan, Kansas, it's hard not to think about the brand's evolution since its first location in Denver back in 1993. While your tenure with the company didn't start with the very first store, what does this milestone represent to you?

Scott Boatwright:

If you think about Chipotle over its 32, 33-year history, it is an impressive feat to really build something so unique and so special that had such extraordinary fandom from its origins to where it is today. When Steve Ells founded Chipotle, it was really an attempt to find a way to generate cash so he could open a fine dining restaurant. And so, what he found was lightning in a bottle and really started this category that we enjoy today known as Fast Casual and found a way that people wanted to eat before they knew that's how they wanted to enjoy their food.

And so, the delivery experience and then the food ethos was really born in that very day in 1993, and that's something we pay homage to and celebrate today. Our 4,000th restaurant on our way to 7,000 restaurants in North America is a huge milestone for us, but it's only a stepping stone in the journey that we're on today.

Kristen Scholer:

From a numerical standpoint, 4,000 is an incredible milestone to reach in terms of stores opened. As 2026 gets underway, the anticipation is that 350 to 370 new Chipotle restaurants will open their doors. What does this achievement represent in terms of market penetration, brand maturity, and Chipotle's competitive position?

Scott Boatwright:

We continue to accelerate development in the organization over the past seven years, and we lean into growth in this brand in probably a more meaningful way than most brands do today. We'll grow this year at about 9% new restaurant growth. Next year we'll be around the same benchmark, and that will include partner-operated restaurants in other countries, which we can get to in a moment. But if you think about the economic value that generates or creates for our organization, it is probably best in class, at least best in the industry. And the economic returns at 60% year two, same store return, I'm sorry, return on cash is just impressive.

Kristen Scholer:

Now, your tenure with Chipotle started in 2017 as chief operating officer before you were named CEO in 2024. And during that time, you've played an integral role in leading Chipotle, of course, through headwinds and at time tailwinds, I'm sure. Digital transformation, shifting consumer habits. And so, as you reflect on your tenure with the company so far, how do the experiences of success and of course the challenges impact the way that you lead the brand today?

Scott Boatwright:

Yeah, it's a great question. As you think about the people that we have in the organization today and how incredibly passionate we are about our brand, and it is almost palpable when you go into one of our restaurants and talk to one of our team members about their everyday life, and many of them will meet you with visible emotion in their eyes to tell you how Chipotle has changed their lives. And so, if you think about the past many years, as we've leaned into this idea of cultivating a better world, are really grounded in this north star called food with integrity.

We are changing people's lives in many unique ways and different ways as we grow, continue to grow the great brand. But I'll tell you, when you navigate turbulent economies or downturns that are cycles that you try to manage through, you become stronger as a team and you lean into those moments to try to accelerate performance. And we have the ability because of the strength of our economic model to really invest in down cycles. Even in what we're experiencing today in 2025 was a challenging year for the industry at large.

We continue to invest through that cycle and invest in people through their development, invest in their growth, invest in new restaurant growth and how we think about the brand long term. And we always exit those cycles, those down cycles, stronger than we entered. And so, I think it takes a strong team, a strong culture, and a north star and a purpose that is meaningful to navigate tough times.

Kristen Scholer:

Let's talk about your roots in the food service industry, if we can. You spent nearly two decades at Arby's in a range of leadership roles, and many leaders in this space start on the front line. And so, how did you first get your start and how did it help shape your understanding of the realities of running a restaurant?

Scott Boatwright:

I started this career in my early 20s, and I actually started in fine dining and then moved over to quick service restaurants, which is quite a leap and it's a pretty significant shift. What I learned is I was actually quite good at it. And so, when I say good at it, meaning I had a knack for building and developing great teams and then creating the right environment for those teams to be hyper successful. And I replicated that model as I continued to move up through the various hierarchy and operations leadership.

And that really culminated in the opportunity that came to me in 2017 when Steve Ells called me up and asked me could I could come help and support what he was trying to accomplish then and really get the brand back on its front foot. And so, I knew my skillsets were uniquely suited to solve the challenge then. And we navigated what I think was a really challenging time for the brand pretty successfully and we went on a really nice run from 2017 till today. And so, when I say a nice run, meaning the growth of the brand, both in organic same store restaurant sales, as well as new restaurant growth and people development.

Kristen Scholer:

Yeah. So, let's pivot to personalization and the importance in fast casual eating of making the consumer feel important beginning to end. How would you define personalization from Chipotle's perspective and what does it look like in practice?

Scott Boatwright:

So, we partnered with some outside firms a couple of years ago to really create bespoke experiences for our consumers, specifically in digital commerce. And so, we were lucky enough to have consumers join our loyalty program. We monitor their behaviors and their patterns and try to bring or offer them things that are unique and special that are tailored specifically for them through the mobile or loyalty app, which I think is unique to our brand. There's more work to be done there to really refine the algorithms.

To really create unique experience that are AI generated versus manually generated to really create, again, experiences that you don't traditionally get at other fast casual brands today and really continue to drive digital commerce.

Kristen Scholer:

I am a Chipotle loyalty program member. So, I want to talk about that, Scott, because I'm also a big Chipotle fan in general. So, Chipotle's loyalty program has become one of the largest in the industry with millions of members generating a wealth of insights. How do you leverage that scale to deliver truly meaningful personalization going beyond generic offers to create tailored experiences?

Scott Boatwright:

Yeah. It's something we obviously has evolved as the program has evolved over the last many years. We leaned into this summer of extras this past summer to understand how can we engage the consumer in a more meaningful way. And we put together a program that included tiering or badging or milestones that really drove outsized performance in the digital system for us this summer. So, we know that it's a pretty significant unlock if we can engage the consumer, create unique experiences for them.

And we also offer them access to new promoted items that we bring into the business early, and so they take advantage of those. We lean into ideas that we generated around Freepotle, which offers our loyalty program members free offerings that bring them in. We think what we do is probably best in class, but we also think we can be better.

Kristen Scholer:

How do you want to improve that?

Scott Boatwright:

There's more we can do as it relates to personalization. And we continue to, again, drive this AI generated content that is really unique for every user in the system because we have 45 million people that have joined the loyalty program. 20, 22 million are active today. I think there's an opportunity to recapture those that have joined the program that have maybe lapsed or potentially grabbed those that are at risk to bring them back into our funnel. And again, continue to celebrate why Chipotle is unique and special.

I think what we do at Chipotle is so unique to us in this idea that we bring in the best ingredients in the world with the best animal husbandry practices. And then we prepare our products in restaurants with pots, pans, knives, and cutting boards and stove tops, leveraging classic culinary techniques. And so, if you think about the core value proposition that is Chipotle, it is very unique, it is very special, and we can deliver that. The average price of a chicken burrito today across America is still under $10, and I don't think there's anyone in the space that can even compete or come close.

Kristen Scholer:

Scott, you're joining me after Time named its Person of the Year for 2025 as the Architects of AI. We talked to all sorts of leaders about artificial intelligence, and I want to turn the conversation to that technology now. The technology has shown the ability to streamline processes, transform day-to-day operations, and make things more efficient. How is AI being implemented across Chipotle?

Scott Boatwright:

We use it today, and we've been using it in various components of the business, whether it was machine learning or true AI, or talking about how we leverage generative AI in the future. Today we use it for forecasting, we use it for modeling. We are using an AI visioning system to help us get better at throughput at peak periods in our restaurants. Lots of conversation about how we use AI in the organization through our support functions, and then thinking through other use cases, potentially a restaurant manager co-pilot that'll help the restaurant manager be more efficient, be smarter, and able to put information at their hands or their fingertips in a much more efficient way.

Kristen Scholer:

Innovation on the minds of most consumers surrounds menu innovation. We've seen limited time offerings of carne asada, brisket, Chipotle honey chicken, red chimichurri, among a host of others. How do you decide which innovations make sense for the brand?

Scott Boatwright:

So, we leverage a stage gate process. You've probably heard us talk about it in the past, and everything has to move through that stage gate successfully, and we call the three greens as a successful LTO, meaning it's right for the consumer, it's right operationally, it doesn't add too much complexity, and it's right financially. And if it passes the three greens and it performs the way we want it to perform in the market test, then it makes it onto the national calendar at some point. Our culinary team back in Newport Beach are best in class, led by Nevielle Panthaky, who is a culinarian his entire life.

And so, we bring unique skews into our business that are on brand and that are on trend, I think is really important to meet a consumer need state. And once that gets through our stage gate process, it makes it onto a national calendar. We have historically done two LTOs in a given year, we are ramping innovation this year in 2026. We'll move to a four LTO cadence, so think of one about every quarter. And we'll also offer in throughout the year different sides and dips that'll create unique experiences for the consumer as well.

If you think about the brands that are winning in the space today, they're winning on innovation, they're winning on value as a price point, which is not something we do at Chipotle. And then they're winning on experiences and I think we can be very competitive in this environment with our core value offering, with our LTO strategy and innovation on menu, and how we think about our rewards consumers going forward.

Kristen Scholer:

What role does menu development play in your growth?

Scott Boatwright:

It's important. What it does is it gives the active consumer another reason to come in and it brings new users to our brand around exciting flavors that they may not have access to in their restaurant portfolios today. And so, we typically have a step change improvement in transaction performance when we launch an LTO and it's very sticky. Those consumers continue to repeat because they find the experience so unique and so special.

Kristen Scholer:

How do you strike the balance between introducing new flavors, throwing variables into the ordering process while maintaining that efficient order preparation that brings so many to your restaurants?

Scott Boatwright:

That's a critical component of what we do and throughput is very important to our business. And so, when we test products in the system today, if they're too operationally complex, no matter how great that product may be, we just can't launch it. A prime example of that is one of your favorites, Kristen, is the quesadilla. And we tried many different ways to create a quesadilla experience on the main line in our restaurants, and it was just too cumbersome or too operationally complex.

And so today you can only get the quesadilla through our digital channels. It is not available in restaurant unless you ask for it nicely and a team member has the opportunity to make it for you. But we always were very thoughtful about innovation that we bring into the system and we're thoughtful of how our team members will have to interact with the product and deliver the experience to maintain efficiency down the line.

Kristen Scholer:

Now, as we head into 2026, Chipotle has announced plans for significant international expansion, including partnerships in Asia, specifically South Korea and Singapore, as well as growth into Mexico. What makes now the right time to accelerate globally?

Scott Boatwright:

We've given a lot of consideration to our growth trajectory over the next 10 years. And at our growth rate today, Kristina, you can imagine at 9%, 10% new restaurant growth on top of 4,000 as a base, we have said publicly we can get to about 7,000 in North America. And so, you start to close in on that number at some point in the next 10 years. And so, with that said, we have to think through what's going to be the next layer of growth for our great brand in the out years. And so, we have company-owned restaurants in Western Europe today.

And so today we are in Paris and UK and Germany, and we think we can grow that footprint to hundreds of restaurants across Western Europe. And then partner-operated restaurants, we look at different geographies and we try to understand operational complexity, partner quality in the market, our access strategy, how we go into the market, what's the right entry from an economic perspective, whether that's full partner or joint venture. And we're making bets with big players that have a history of bringing American brands to those regions with a high degree of success.

And Alshaya was a natural fit in the Middle East and we have just opened this morning, our 11th restaurant in the region with a lot of success and a lot of fandom. I was just in Dubai and Kuwait and had the opportunity to do two grand openings while in the market. And the fanfare and the reception that we are met with in the Middle East is it would cause goosebumps to come up on your arms, Kristen. And it is really exciting to see and the volumes that we're seeing in that market today are outpacing our US markets, which is impressive.

And so, we think Latin America's a great opportunity. We'll open in Monterey this year, we'll open in South Korea and Singapore with our partner at SPC. And if you think about what's going on in South Korea today, they're really leading pop culture in Asia and there's a lot of pent-up demand for Chipotle, believe it or not, in South Korea. So, we're excited about that opportunity.

Kristen Scholer:

We look forward to watching. A fast casual looks very different in global markets as entrants encounter strong local players and different consumer habits, but obviously you're very optimistic, Scott. Talk to me more about your strategy for building brand awareness in markets where Chipotle might not be as mainstream as it is in North America.

Scott Boatwright:

Yeah. So, at present, we're just leveraging a local market strategy. And as we build scale within those geographies, we'll get to more of a regional platform as we think about how we market the brand. I think the name carries a lot of weight around the globe today and again, look no further than what's happening in the Middle East. And so, I was down in Monterey touring with our partner, the market, and where we're going to put Chipotle locations in Monterey, Mexico. And people would just come up to me on the street and tell me how excited they were to get their first Chipotle. That's in Monterey, Mexico.

And so, the brand's name has gravitas and it carries weight. And if you think about the core of our offering, it's rice, beans, and chicken, and that works in every geography around the world. And so, we have a lot of optimism, we have work to do to prove out that hypothesis, but we believe we're going to do quite well.

Kristen Scholer:

How do you see Chipotle's footprint evolving over the next five years?

Scott Boatwright:

We'll continue the rapid growth that we see today as we continue to penetrate the US markets. We have about 75 restaurants in Canada and we're growing at a pretty quick pace in Canada. This year, we'll close in around 20%, 25% new restaurant growth in Canada. We'll continue to accelerate development in Western Europe, probably extending our footprint to other countries and other geographies in Western Europe, whether that's Spain, Benelux, the Nordics. We think there's a lot of opportunity there. So, we'll continue to expand our global reach over the next five to 10 years and truly be what we talk about often is this global iconic brand.

Kristen Scholer:

How do you define success as Chipotle expands?

Scott Boatwright:

I define success very differently than probably most. I think I truly believe that what we are doing is changing the world. And so, what does that mean and what does that look like through my lens? When this brand was started, Steve Ells thought that food had the power to change the world, and he sought to change the way people thought about and ate fast food. And what we do is we bring wholesome, nutritious meals to oftentimes food deserts around the country or around the globe. And we're giving people access to wholesome, fresh ingredients prepared in restaurant fresh every day.

No microwaves, no can openers, no freezers, we're cooking real food and delivering that experience at a price point that is approachable. And I think that's important because oftentimes when people eat meals like that, it's at a fancy restaurant where you pay hundreds of dollars to have a chef-driven restaurant to have a great meal and we offer that at around $10. And I think that is very special and unique to our brand and we'll continue to lean into it. And it's all really in this idea of cultivating a better world.

Kristen Scholer:

Sticking on the conversation of partnerships and expansion, Chipotle in December introduced a collaboration with the travel at brand BEIS. How do you see this luggage partnership fitting within Chipotle's broader brand identity and goals in 2026?

Scott Boatwright:

It's a natural tie-in. We've done several collaborations throughout the past few years. We partnered with Elf Cosmetics, obviously with BEIS on luggage, and we just want to be culturally relevant. And so, what we endeavor to do with our marketing programs is to make the brand more visible, more relevant, and more loved. And we think those are strong connections with our core consumers to just show up in different places. And we want to show up in sports and pop culture and in all the places where we know that our fans are going to be to remain top of mind and create awareness for the brand.

Kristen Scholer:

Well, I'm a big fan of BEIS as well. So, you got two thumbs up on that one Scott.

Scott Boatwright:

I think we need to send you a piece of luggage.

Kristen Scholer:

Okay. Can we have some fun maybe with some rapid-fire questions?

Scott Boatwright:

Sure.

Kristen Scholer:

You're the CEO of Chipotle, so we got to ask you your order preference, walk in and order, or pre-order online and pick up. Which do you prefer?

Scott Boatwright:

I like the in-restaurant experience. I think it's the best way to Chipotle full stop is when you get to connect with a team member down the line and just have whatever you want. And that's what's most beautiful about our brand is we don't control portions, we give you as much food as you want. And so, if you want more rice, we hand it to you, if you want more beans, we'll give it to you. And I think controlling the experience and seeing the food, because I think we often eat with our eyes is probably the best way to Chipotle.

I'm often a bold person, but I think our best form factor still yet after 30 plus years is the burrito. If you can tolerate the calories, the extra couple of hundred calories, then the burrito's the way to go.

Kristen Scholer:

Okay. So, burrito's your top choice, but then next up, we've got bowl quesadilla or tacos. Which of those three do you prefer?

Scott Boatwright:

Oh my gosh, Kristen, you can't, it's like asking which of your kids that you love the most. And so, I eat all around our menu and I change it up quite often whether it's a quesadilla, a bowl, burrito, tacos, our soft tacos are amazing. Our food is just really, really good. And I've been a fan of our brand long before I joined the brand. And so, it's a labor of love for me to be supporting this brand.

Kristen Scholer:

Okay. So now, we got to talk about the support to the main course, which is the sides, right? Another rapid-fire question, guacamole, sour cream, or queso?

Scott Boatwright:

Guacamole for sure. Our guacamole hand mashed in restaurant with our unique recipe is best in class. There's nothing like it in the world. We prepare it fresh every single day in our restaurants across 4,000 restaurants today. As it relates to sides, a protein side, if I could make a pivot, Kristen, is a great way to really get your protein needs at Chipotle today and look no further than our protein menu that we've just launched. We're doing a side of protein, which is 32 grams of protein in a cup to really hit that consumer who's looking to boost their protein intake for the day.

And then our double protein bowls, our high protein, high fiber bowls. The great thing about Chipotle is no matter what your dietary restriction is, you can eat at Chipotle. We have a bowl for you, whether it's Whole 30 or paleo or high protein or high fiber, you can meet your dietary needs without worrying about allergens at Chipotle.

Kristen Scholer:

Perfect. All right, Scott, as we start to wrap up our conversation here, we've learned a lot, so thank you again for your time. The fast casual segment is becoming more crowded with competitors going after the same consumer base. What will be Chipotle's biggest differentiator in 2026?

Scott Boatwright:

I think it's the same differentiator that's always been omnipresent in our brand and this idea of high quality, great tasting food, prepared fresh, and restaurant with unique flavors that are on brand. I think that's what this competitive moat that we have built around this business is durable and sustainable.

Kristen Scholer:

Okay. And we started our conversation by talking about the 4,000th store milestone in Manhattan, Kansas, a tremendous achievement that does reflect Chipotle's growth and momentum. So, thinking long-term, what will truly define Chipotle's next chapter?

Scott Boatwright:

I think the next chapter of Chipotle is how we think about, I was looking back historically and how many CEOs have been in the brand. I'm the fourth in the company and thinking about what they all accomplished during their time at the helm, which was quite remarkable from Steve to Monty to Brian. As I think about where I'd like to take the brand in the future is really moving towards this idea of being a global iconic brand that is creating food experiences around the world, unique experiences that are at an approachable price point.

And so, I think that's it wrapped in a nutshell is how do we continue to expand access for the consumer? How do we think about leveraging technology and AI to really drive better team member and consumer experiences, whether that's in our digital properties or in our in restaurant experience, and then how we continue to grow and scale the brand globally.

Kristen Scholer:

Scott, thanks so much for joining us inside the Ice House.

Scott Boatwright:

Thank you, Kristen. Thanks for having us.

Kristen Scholer:

That's our conversation for this week. Remember to rate, review, and subscribe wherever you listen and follow us on X @icehousepodcast. From the New York Stock Exchange, we'll talk to you again next week inside The Ice House. Information contained in this podcast was obtained in part from publicly available sources and not independently verified. Neither Ice nor its affiliates make any representations or warranties expressed or implied as to the accuracy or completeness of the information and do not sponsor, approve, or endorse any of the content herein, all of which is presented solely for informational and educational purposes.

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