Viral Chipotle ‘Hack’ Unintentionally Sparks Lawsuit

Chipotle could be facing a new lawsuit stemming from fans’ growing frustration with the fast food company and the infamous trick customers believed proved it was skimping on portion sizes.

In a proposed class action filed in Santa Ana, Calif., federal court, shareholders said Chipotle “failed to disclose growing unhappiness among customers with inconsistent portion sizes for its burritos and rice bowls,” according to documents reviewed by Reuters.  

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The Nov. 11 report goes on to explain that after the chain stirred up controversy over a viral “hack” claiming Chipotle employees were told to beef up portion sizes for customers who appeared to be filming the assembly of meals—a tactic that was later dubbed the “phone method”—the money spent trying to course-correct the PR scandal hurt margins, causing Chipotle’s stock price to fall after the company reported second and third-quarter results, per the complaint.

Chipotle first denied the claims, telling Forbes at the time that the food chain “did not issue instructions regarding filming” and stated that there had not been any change in portion sizes. The company also poked fun at the idea in a video it shared to TikTok in May.

@chipotle

i’m working late, cuz i’m Chipotle

♬ original sound – Chipotle

The proposed suit comes some six months after the initial social media outrage peaked and follows Chipotle’s decision to promote interim CEO (and former Arby’s exec) Scott Boatwright to a permanent position. Last week, Boatwright also confirmed Chipotle has been serving “consistent and generous portions” in the months since the company first came under widespread scrutiny.

The familiar comment was first made by former Chipotle chairman and CEO Brian Niccol—who now holds a leadership position at Starbucks—this past July, when he said Chipotle would be re-emphasizing “training and coaching around ensuring we are consistently making bowls and burritos correctly” at its more than 3,600 restaurants in the immediate aftermath of the portion sizing debate.

Overall costs to repair the damage hurt margins, toyed with stock prices and come time for Chipotle to report its financials on Oct. 30, wiped out about $6.5 billion of market value, according to the filing.

In a statement shared with Parade, Chipotle’s chief corporate affairs officer Laurie Schalow said that while the company doesn’t “comment on litigation,” it “will vigorously defend our industry leading real food.”

The lawsuit seeks unspecified damages for purchasers of Chipotle stock and options from Feb. 8 to Oct. 29, 2024.

Next: The Chipotle Ordering Hack We Wish We’d Known About Sooner