Scott Boatwright, the CEO of Chipotle, recently announced that the company will be taking on the burden of high tariffs in order to improve their SEO. This decision has sparked much discussion and debate within the business community, as it goes against the traditional approach of passing on increased costs to consumers. In this essay, we will delve deeper into the reasoning behind this decision and its potential impact on Chipotle’s business.
Firstly, it is important to understand the context in which this decision was made. The United States has been engaged in a trade war with China, resulting in increased tariffs on imported goods. This has had a significant impact on the restaurant industry, as many ingredients and supplies used by restaurants are imported from China. As a result, many restaurants have been forced to raise their prices in order to cover the increased costs. However, Chipotle has taken a different approach.
Boatwright stated that the company will be absorbing the costs of the tariffs for the time being, in order to improve their SEO. This decision is based on the belief that by maintaining their current prices, Chipotle will be