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Chipotle announces bonuses, new training programs, expanded parental leave for employees

February 7, 2018

Possibly taking its cue from Starbucks, which announced last week that it was giving its employees raises and more time off as a result of the Tax Cuts and Jobs Act, Chipotle has released its own enhancements to benefits. CFO Jack Hartung said during in an investor call Tuesday that the tax law change would result in Chipotle saving $40 to $50 million in 2018, which has allowed the chain to enhance the benefits of each of its 71,000 employees. 

Steve Ells, founder, chairman and CEO at Chipotle, said today in a company press release, that Chipotle is happy to give back to these "committed, motivated, and hardworking team members who have made Chipotle what it is today."

Chipotle will reinvest more than one-third of its anticipated savings from tax law changes into its employees. The remainder of the reinvestment will be dedicated to improvement of restaurant facilities and operations. New employee benefits include:

• Accelerated Training Programs. More training programs for employees, including a formalized classroom program with a dedicated faculty that will focus on a range of topics related to operational excellence and leadership.
• Cash & Stock Bonuses. Qualified hourly and salaried restaurant employees will receive a special one-time cash bonus of up to $1,000. Qualified staff employees will receive a one-time stock grant.
• Maternity/Paternity Coverage. Additional paid parental leave coverage for everyone from hourly managers to salaried employees.
• Life Insurance and Short-Term Disability. The company has added life insurance and short-term disability insurance coverage for hourly restaurant managers.

These new offerings are in addition to the set of benefits the company already offers to employees, including both hourly and salaried workers. Chipotle currently provides twice-annual merit increases for hourly employees, paid vacation and sick time and stock awards to the restaurant manager level, according to the release.

Additionally, the company has made a significant investment in educational benefits for employees. Chipotle offers up to $5,250 in tuition reimbursement, and through a partnership with Guild Education, the company offers reduced-cost courses and degree programs at a number of colleges and universities. The educational program includes more than 10,000 class and program options and since the inception of the program, nearly 6,000 Chipotle employees have taken advantage of the program.

"We have always been committed to making Chipotle a great place to work with excellent compensation and benefits," said Ells, who announced in November that he would be stepping away from the CEO role in order to "focus on his strength of bringing innovation to the way the chain sources and prepares food.

"With these expanded offerings, we're thanking our employees for their hard work and dedication to our company," Ells said.

Chipotle announced late Tuesday afternoon that its revenue increased 7.3 percent to $1.1 billion during its fourth quarter for the year ended Dec. 31, 2017.