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How Chipotle Became a Wall Street Star, and a ‘Wall of Shame’ Employer

by Priya Shah – Business Editor

Chipotle’s Promise Crumbles: From Culinary Haven to Burnout Factory

Worker Exodus and Union Busting Emerge as Financial Turnaround Masks Internal Decay

Once lauded for its commitment to quality and employee development, Chipotle now faces widespread accusations of a drastically degraded work environment. Former and current employees describe a rapid descent from a respected “fast casual” employer to a high-pressure, understaffed operation mirroring the industry’s least desirable chains.

A Shift in Standards

Starting his first job at a Lawrence, Kansas, Chipotle in 2017, then 16-year-old Jacob Schneider initially found the pay and training “decent.” However, he observed a steady decline. “A lot of corners were being cut over time,” Schneider recounted, noting broken equipment that remained unrepaired for a year and shrinking break times. This deterioration culminated in what he described as “terrible” store morale, with coworkers frequently discussing their desire to quit.

Founded by Steve Ells, Chipotle grew into a global powerhouse. Following significant foodborne illness outbreaks in 2015 and 2017, Ells stepped down as CEO. His successor, Brian Niccol, formerly of Taco Bell, initiated a dramatic overhaul focused on efficiency, introducing order screens, delivery options, and “Chipotlanes.” These changes reportedly boosted annual revenue from $4.9 billion in 2018 to $11.3 billion by mid-2024, with stock value soaring.

Steve Ells, founder of Chipotle, and his successor Brian Niccol, who led a significant expansion and shift in company strategy.

However, for Chipotle’s 130,000 employees, these financial gains translated into a significant cultural shift. Workers feel the company has embraced a “fast food ethos,” making its restaurants indistinguishable from lower-tier competitors in terms of employee experience.

Labor Violations and Burnout

Evidence of this shift has emerged nationwide. In 2022, Chipotle paid a $20 million settlement to New York City for nearly 600,000 violations of scheduling and paid leave laws. The company also appeared on New York City’s “Employer Wall of Shame” for labor practices. In Seattle, a $2.9 million settlement addressed allegations of failing to provide extra pay for schedule changes and retaliation against employees.

A 2024 study analyzing Glassdoor reviews found Chipotle had the second-highest rate of employee burnout among major U.S. employers. This contrasts with the company’s public statement: “Our employees are our greatest priority, and we are committed to providing a best-in-class work experience that includes robust training and development programs,” stated Laurie Schalow, Chipotle’s chief corporate affairs officer.

“Many of the qualities that made Chipotle stand out as an employer — offering a stellar working experience where they were well-trained and valued and able to offer customers a high-quality experience — have precipitously declined.”

Business Insider interviews with current and former employees

A Legacy of High Standards Undermined

Chipotle historically prided itself on fresh ingredients and a higher standard of employee treatment, distinguishing itself from typical fast-food chains. For instance, former employee Anna recalled starting at minimum wage in 2012 but quickly earning over $60,000 annually through raises and bonuses, complemented by excellent benefits. She described the initial work environment as having rigorous standards, akin to culinary school training, which fostered a “great environment.”

New hires initially underwent extensive training, watching videos, studying detailed booklets, and receiving hands-on guidance. “It was a really in-depth process,” recalled Brandi McNease, who began as a crew member in 2016. The company’s training included a clear career progression path, aiming to develop employees for advancement. “They wanted to grow people and bring them up,” McNease added.

How Chipotle Became a Wall Street Star, and a ‘Wall of Shame’ Employer
Chipotle’s commitment to high standards and employee growth was a hallmark of its early success.

However, employees report that this comprehensive training has diminished significantly. Leslie, who started in 2019, received minimal instruction, often learning tasks through self-teaching and observing colleagues. Similarly, Brandi McNease observed new hires being placed on the floor without adequate training, and at a Kansas location, employee Thomas found himself frequently correcting colleagues on food safety procedures due to insufficient training.

In a statement, Schalow asserted that current training covers food safety, workplace conduct, and operational roles. Yet, employees like Jacob Schneider noted a shift in focus towards strict portion control rather than food quality and safety training.

Scheduling Chaos and Understaffing

The company’s scheduling practices have also drawn criticism. Data from The Shift Project indicates that a significant majority of Chipotle employees receive their schedules less than two weeks in advance, with many getting less than a week’s notice. Frequent shift changes and cancellations are reportedly common, causing considerable disruption for staff. “Chipotle is really at the bottom of the heap” regarding scheduling predictability compared to similar restaurants, according to Daniel Schneider, a principal investigator at The Shift Project.

Workers describe chronic understaffing, forcing employees to juggle multiple roles and leading to increased risk of injury. Arrow Smith at the Augusta, Maine, store noted a rapid transition from being “awesome and well-staffed to a skeleton crew.” This environment, coupled with a surge in employee turnover rates—climbing from 130% in 2016 to 194% in 2021—has created a chaotic atmosphere. Chipotle asserts that staffing levels are improving and turnover rates are decreasing.

These internal issues have reportedly impacted customer experience, with longer wait times and occasional ingredient shortages. Concerns about portion consistency even led to a Wells Fargo analyst’s study, which found significant variations. While Chipotle maintains its portion sizes haven’t changed and reinforces proper training, customer complaints and filming of workers persist.

Unionization Efforts Face Resistance

In response to these challenges, numerous Chipotle workers have pursued unionization. In New York, efforts by SEIU 32BJ met resistance, with one organizer, Smiling Estrella, alleging wrongful termination after speaking out. Chipotle faced seven unfair labor practice charges in New York City in 2023, the highest for any employer, with four additional charges pending before the National Labor Relations Board.

In Lansing, Michigan, employees successfully formed a union with the International Brotherhood of Teamsters in 2022. However, the company allegedly engaged in anti-union tactics and was found by the NLRB to have violated labor law by withholding raises from unionized workers. They still await a contract.

The Augusta, Maine, location’s unionization drive in 2022 led to a two-day walkout and a subsequent NLRB filing for a union election. Following mandatory anti-union meetings and disciplinary actions against organizers, Chipotle permanently closed the store, citing “location-specific staffing challenges.” Employees received $240,000 in back pay through a settlement.

Chipotle workers march demanding fair wages and workplace practices.
Unionization efforts have faced significant opposition from Chipotle management across various locations.

At a Lawrence, Kansas, location, union organizing efforts also encountered pushback, resulting in disciplinary actions and firings, leading to a settlement requiring Chipotle to post notices about workers’ rights. These actions instilled fear, causing the union campaign to falter.

Despite these internal struggles, Chipotle continues to expand, planning over 300 new locations this year. However, same-store sales have declined for two consecutive quarters in 2025, marking the first such drop since the COVID-19 pandemic. Chipotle’s stock has also seen a notable decrease from its December high.

For Jacob Schneider, who left Chipotle after graduating college, the contrast is stark. Now employed as a graphic designer, he feels respected and valued. “I’ve never been happier, honestly,” he stated.

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