Shrinkflation at Chipotle: Lessons from Domino's 2009 comeback
In the ever-competitive restaurant industry, brands are constantly under scrutiny. As an example, Chipotle recently has been accused of shrinkflation, with customers alleging portions are being reduced. This negative publicity has spread like wildfire, particularly on social media platforms like TikTok. However, this could be a golden opportunity for Chipotle to turn things around.
Remember Domino’s in 2009? The pizza chain faced severe criticism for its poor quality – complaints ranged from the pizza box tasting better than the pizza – to the sauce resembling ketchup. Instead of shying away from the negative press, Domino’s took it head-on. They publicly acknowledge the criticism through commercials and YouTube videos, showcasing their commitment to change.
According to a July 2024 article in Fast Company titled “Companies Can Apologize to Their Customers Better” Domino’s employed an extended apology. This approach goes beyond a simple apology by including long-term commitments to change and corrective action, often with some form of compensation. Domino’s not only revamped their core ingredients but also validated the improvements by having their harshest critics review the new products. They further incentivized customers with offer and coupons to try the new Domino’s.
This strategy paid off immensely, transforming Domino’s reputation and becoming a case study in MBA programs worldwide. The lesson here is clear: it’s not about the mistake but how you fix it. Chipotle’s shrinkflation scandal is now a unique opportunity to create their own “Domino’s moment.”
With everyone watching, Chipotle has the perfect stage to demonstrate their dedication to quality and customer satisfaction.