With Chipotle CEO Brian Niccol departing to take the helm at Starbucks, a key question remains:
Who will lead the next era for Chipotle?
Scott Boatwright, Chipotle’s chief operating officer, will take the wheel as interim CEO when Niccol departs on August 31. He seems a likely candidate for the permanent job.
Chipotle’s announcement on Tuesday did not explicitly say the board was planning a search for Niccol’s replacement, but, when asked later, a spokesperson said the board is planning an external search “as a matter of good governance.”
Scott Boatwright. | Photo courtesy of Chipotle.
Boatwright joined the company in 2017 as chief restaurant officer and was the first outside executive hire since the chain went public in 2006. Before joining Chipotle, Boatwright had spent 18 years with Arby’s Restaurant Group in various leadership positions before becoming senior vice president of operations, where he was responsible for about 1,700 Arby’s units at the time.
When he joined Chipotle, Boatwright became part of a team focused on turnaround after the burrito chain suffered through two years of turmoil following a foodborne illness outbreak that began in 2015 and eventually led to the departure of founder Steve Ells from the CEO seat, though Ells remained executive chair of the board at the time.
Niccol was named CEO in 2018, and he became board chair in 2020. The former CEO of Taco Bell who had spent seven years with the thriving quick-service brand, Niccol proved to be the right pick.
Niccol moved the Denver-based chain to Newport Beach, California, and set Chipotle on a path that shook off any association with foodborne illness. Chipotle became a brand embraced by digital savvy and protein-hungry young men, in particular, from Gen Z to Millennials.
But where Niccol was a marketer to his core, Boatwright describes himself as an operator at heart. He is credited with leading the company’s integration of new technology, building a strong culture and achieving industry-leading retention and improvements in throughput.
Chipotle’s swift recovery after the pandemic can be credited in part to investments in digital technology before the COVID shutdown, which Boatwright championed, like installing separate makelines for digital orders in the back of the house. That allowed the burrito chain to expand its capacity and grow sales as consumers embraced third-party delivery.
Boatwright, who was named Chipotle’s chief operating officer last year, has also led the development of new formats, including Chipotlane drive-thrus. This year, Chipotle expects to open 285 to 315 new restaurants, about 80% of which will be drive-thrus.
The 3,500-unit chain is working toward a goal of reaching 7,000 restaurants across North America—while stepping up international growth—and pushing to reach an average unit volume of $4 million, up from $3.1 million in the second quarter.
And throughput has become an area of intense focus, especially at peak hours. Fundamentally, Niccol said, “It is the outcome of a strong operational engine that delivers a great experience for our teams and our guests.”
The drive for exceptional throughput has involved the adoption of technology that helps with scheduling, labor management and predicting demand, for example, but also what Niccol calls “shoulder-to-shoulder” training.
With 120,000 workers and plans to double in unit count, workforce management will play a vital role in Chipotle’s future.
Better training was also Chipotle’s response to months of withering criticism on social media about portion sizes. TikTok influencers cried shrinkflation, urging consumers to film Chipotle workers to shame them into bigger scoops of carne asada, steak and chicken.
Niccol has long insisted Chipotle’s portions are as big as ever—and overstuffed bowls and burritos are a key factor in consumer perceptions of value.
But after a systemwide review during the second quarter, Niccol said some restaurants were scoring poorly on portion sizes, and now Chipotle is investing in retraining at those “outlier” locations.
The portion issue didn’t seem to do much damage. Chipotle’s same-store sales were up 11.1% for the second quarter, which included an 8.7% increase in traffic.
But as Chipotle heads into a more challenging second half of the year, it is perhaps that deeper focus on operations that will determine how the chain transitions into a new era of leadership.
As Boatwright steps into the CEO seat, albeit as interim for now, he is uniquely positioned to continue that operational work.
Boatwright will be supported by Chipotle’s long-time CFO Jack Hartung, who earlier this year said he planned to retire, though a slow baton pass was planned as incoming CFO Adam Rymer steps into the role on Jan. 1. Now Hartung—who has been with Chipotle since it had 200 units— says he will stay on indefinitely as president of strategy, finance and supply chain to ensure a smooth transition.
Boatwright, meanwhile, reiterated his confidence in the five key strategies Niccol has put in place.
“I’m excited for the new opportunity to lead the business moving forward,” he said in a statement. “We have a world-class organization full of talented leaders who are passionate about our brand and purpose and excited for the long-term opportunity to grow to 7,000 restaurants in North America and expand internationally.”
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