Chipotle Tells Workers To "Preserve" Chicken Supply As Demand Soars

A surge in restaurant traffic boosted Chipotle Mexican Grill's first-quarter earnings and revenue, topping the average estimate of Wall Street analysts tracked by Bloomberg on Wednesday.

Shares are higher by more than 5% in the cash session on Thursday. However, this note will not expand on earnings. Instead, we will focus on a letter from the company to employees stating: Stop eating chicken during lunch and dinner meals because soaring demand has collided with dwindling poultry supply—and the need to preserve supply urgently. 

Bloomberg obtained the letter Chief Restaurant Officer Scott Boatwright sent employees last week. He told them:

"Due to its sustained strong sales we need your help to keep up with our guests' demand for this popular protein option." 

Boatwright told store managers and hot-side and cold-side kitchen employees not to order chicken or chicken al pastor with their free or discounted employee meals. Even white-collar Chipotle workers were told not to order chicken. 

The message read, "Let's Conserve Our Fan-Favorite Chicken." Execs did not give a timeline for boosting the chicken supply. The letter aimed to "preserve our supply of Adobo Chicken for our guests." 

Chief Corporate Affairs and Food Safety Officer Laurie Schalow told Bloomberg in an emailed statement:

"Due to the high demand for chicken in our restaurants and sustained success of our limited-time offer chicken al pastor, we temporarily asked all of our employees at corporate and in-restaurants to select another protein option for their meals to preserve our supply." 

The Chipotle mobile app shows no disruptions to any protein option on the menu. 

Harper McNamara, an employee in Michigan at the only unionized Chipotle US store, was quoted by Bloomberg as saying the company's move was a slap in the face to its workforce: "It's disrespectful, just on a personal level."