The Scoop: Chipotle, Waffle House emphasize transparency about price fluctuations 

Also: Google lifts ban on AI use for weapons; Mavs’ messaging around Doncic deal doesn’t answer questions.

Waffle House and Chipotle are speaking plainly to customers about how economic factors may impact pricing.

Waffle House is confronting the effects of the bird flu, which has caused a sharp rise in egg prices. To mitigate the rising costs, the chain added a $0.50 surcharge for every egg it sells. It made the upcharge clear to customers by placing an explanation sticker on its in-store menus.

 

 

“While we hope these price fluctuations will be short-lived, we cannot predict how long this shortage will last,” Waffle House said in a statement. “We are continuously monitoring egg prices and will adjust or remove the surcharge as market conditions allow.”

On the other hand, Chipotle has worked to downplay concerns about prices and the availability of products if the White House imposes tariffs on Mexico and Canada. During an earnings call Tuesday, CFO Adam Rymer said that if the Mexican tariffs go through, the company’s cost would rise by about 0.6 percentage points. However, he noted that Chipotle sources only about 2% of its inputs from Mexico, including avocados, tomatoes, limes and peppers.

Why it matters: Waffle House’s public-facing statements – an insert on its menu and its comments to the media – are straightforward and direct. They’re not a sneaky charge added to a bill or something that pops up on a screen last-minute. It’s right there in bold print smack dab in the middle of the menu.

As part of its media statement, the chain also made it clear that it plans to keep eggs an important part of its breakfast-focused menu.

“As long as they are available, quality, fresh-cracked, Grade-A large eggs will remain a key ingredient in many of our customers’ favorite meals,” the company said.

Chipotle’s comments show that the comms team anticipated where the story was going so they armed their executives with information that would help them proactively address consumer and shareholder questions. On the call, both the CEO and CFO presented specific data about where they sourced their produce.

If things do change, it’ll be important for Chipotle to make that known as well.

With the threat of tariffs looming, brands in spaces such as fast fashion, tech and toys should consider taking similar approaches to Chipotle and Waffle House.

As with anything, transparency creates a straightforward narrative that customers can easily grasp, reinforcing the message every time they visit.

Editor’s Top Reads

  • Google’s parent company, Alphabet, has rewritten its guidelines on AI use, effectively lifting its self-imposed ban on developing weapons and surveillance tools. The BBC reported that the company removed a section from its 2018 AI rules that ruled out applications that were “likely to cause harm.” In a blog post, Google argued that “companies, governments and organisations sharing these values should work together to create AI that protects people, promotes global growth and supports national security.” The company also wrote that “democracies should lead in AI development, guided by core values like freedom, equality, and respect for human rights.” This shift reflects the complex challenge businesses face. However, removing a commitment to avoiding harm may not sit well with the public. While it’s understandable that tech companies must keep up in the modern “space race,” the defensive 1,200-word statement may disquiet the public – even as they interest weapons makers and world governments.
  • The Dallas Mavericks’ trade of 25-year-old Luka Doncic to the Los Angeles Lakers shocked the sports world. Even LeBron James, Doncic’s new teammate, initially thought it was a hoax. The trade was surprising not only because of its magnitude but also its suddenness. Doncic expressed confusion over the move. The Mavericks have allowed speculation about the reasons for the trade to run rampant. GM Nico Harrison passively acknowledged reluctance to pay Doncic a record-breaking contract, but the reasons for why weren’t clear, aside from a vague statement that the All-NBA player no longer fit the Mavs “culture” in his seventh year with the club. “There are levels to it, and there are people that fit the culture,” Harrison said, “and there are people that come in and add to the culture… those are two distinct things and I believe the people that are coming in are adding to the culture.” While culture concerns are valid, trading your best player without clear reasoning raises questions about the team’s decision-making. Dallas may avoid a public back-and-forth, but the ambiguity leaves fans devastated and players across the league questioning the Mavericks’ front office.
  • A group of scholars released a report card comparing American “well-being”on 37 metrics such as health, economic wealth, etc. – to other nations. While the nation’s economy is the world’s second largest, behind China, by measures of well-being, especially health and happiness, the U.S. lags behind many other countries and has fallen further behind since the 1990s. “We’re so wealthy but so unhappy,” said historian Bradley Birzer.  Marketers must recognize that the economy isn’t just about stock prices and company revenue. While these factors are important for brands in the short term, understanding the general sentiment about the economy is crucial, as it can predict future consumer spending habits. Therefore, social listening is key to understanding customers, not just shareholders.

Casey Weldon is a reporter for PR Daily. Follow him on LinkedIn.

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