Business

You’ll Never Believe What Chipotle Was Caught Doing to Food Bills

Chipotle Caught Rounding Up Customer Bills

AP

Chipotle restaurants in New York, New Jersey, and Massachusetts have been caught nickel-and-diming customers by rounding up bills to the nearest nickel, according to a recent report from the Star-Ledger.

The discovery was made by an astute customer who noticed his bills just weren’t adding up.

“The receipts at the Chipotle in West Caldwell don’t add up when there are odd amounts involved,” Jayson Greenberg of New Jersey told the Star Ledger.

And to prove his point, Greenberg saved his receipts and documented the oddity:

  • July 13: Purchased nine items totaling $32.93. Tax was $2.31. Total should have been $35.24, but was $35.25 instead.
  • July 13: Total purchase was $8.64. Tax was $0.60. Total should have been $9.24, but was $9.25 instead.
  • July 17:  Total purchase was $17.75. Tax was $1.24. Total should have been 18.99 but was $19.00 instead.

So what’s the deal?

“Greenberg figured this was a company policy that had to do with getting people in and out as fast as possible. Makes sense,” Karin Price Mueller writes for the Ledger.

“But at this store, when transactions are completed, the change is automatically distributed from registers that spit out the coins, rather than by a cashier counting coins by hand. With a cashier, the time-saving theory would make sense. Not so much with the machines,” she adds.

Plus, there were no signs notifying customers of the practice. And sure, some may say it’s just a penny — but it’s the principle, right? Greenberg decided to ask one of the chain’s managers about the company’s accounting practices.

“Oh, it’s a computer program. It is just rounding numbers. It takes a little from certain receipts and gives a little to others. What do you want? A few pennies?” one manager apparently told Greenberg.

Understandably unimpressed with this response, Greenberg contacted Bamboozled to see if they would help him expose the practice. They took him up on his offer.

“Bamboozled made two purchases at the Freehold location, and our purchases were added correctly, with totals of $8.00 and $7.50. We noticed the prices in that store were odd, but we figured that was so that when the tax was added, the final bill would end in a zero or a five to avoid the dreaded pennies,” the Ledger reports.

When asked about the policy, a Chipotle spokesman responded:

It’s something we do in some high volume markets, including New Jersey. The way it works is that prices auto-round to the nearest quarter and that’s indicated on the receipt. The idea is simply to limit the possible combinations of change on cash transactions to keep the lines moving quickly in high volume areas.

After the rounding policy was reported by Bamboozled, Consumer Affairs got involved and, as of this month, its now Chipotle policy to round down.

“Instead of rounding up, the chain now rounds down, which means sometimes putting a few extra pennies in customers’ pockets rather than taking one out,” Business Insider reports. “There’s something new about receipts as far as we can tell — a rounding line, which tells customers exactly how much the register rounded down their total.”

See?

Chipotle Caught Rounding Up Customer Bills

Courtesy Business Insider

Read the full report here!

Follow Becket Adams (@BecketAdams) on Twitter

(H/T: The Daily Mail)

Comments (123)

1 2 3
  • Larry E
    Posted on August 30, 2012 at 4:48pm

    A penny or nickel here and there and pretty soon you’re talking dollars, and likely lots of them in a busy franchise. I’ll have to remember to avoid Chipotle everywhere. They’ve shot themselves in the foot on this one I think.

    Report Post »  
    • Anadara
      Posted on August 30, 2012 at 5:37pm

      I’m thinking that the local Internal Revenue people would be very interested. That’s extra income that should be taxed..

      Report Post » Anadara  
    • The-Monk
      Posted on August 30, 2012 at 6:47pm

      I’d be more worried about what they were doing to the food.

      But, this just looks like a prelude to getting rid of “the Penny”.

      Report Post » The-Monk  
    • hidden_lion
      Posted on August 30, 2012 at 7:06pm

      they should get rid of the penny. It is waste of time, money, and metal to produce.

      Report Post » hidden_lion  
    • MsMonsoon
      Posted on August 30, 2012 at 7:49pm

      There’s even more reason to go to Chick Fil A!

      Report Post » MsMonsoon  
    • DIR
      Posted on August 30, 2012 at 9:11pm

      The penny should be the least of customers worries, not to minimize the rip off. Watch when they prepare your burrito or taco. The amount of meat/chicken you get as compared to the other ingrediants (lettuce, rice and beans) in consideration of the price, in my openion, is a rip off. Ask for a bowl or burrito or taco as all beef or chicken. You‘ll be lucky if it’s the size of a twinky, that someone ran over with a car. It evokes the modern day food court question: “where’s the beef?”

      Report Post »  
    • 226crimsontrace
      Posted on August 30, 2012 at 9:15pm

      Oh my God, was he really cheated out of three cents over three visits. The world is now crashing down upon me. Say it isn’t so

      Report Post »  
    • SmartK
      Posted on August 30, 2012 at 9:43pm

      They changed the practice to rounding down, so now they are getting less $$$. So why boycott this delicious restaurant for that? Seriously.

      And of course they are being “taxed for it”. Rounding up or down has nothing to do with weather they are being “ taxed for it” or not. LOL!

      Report Post »  
    • kmltmpx6
      Posted on August 31, 2012 at 4:36am

      Did anyone not see “the Bathroom code?” What if someone needed to use the bathroom be fore they got the check???

      Report Post »  
    • THX-1138
      Posted on August 31, 2012 at 9:10am

      When pennies are outlawed only outlaws will have pennies…

      Report Post » THX-1138  
    • midwesthippie
      Posted on August 31, 2012 at 9:40am

      …what is really shocking is the $11.25 for a carnitas bowl and some guac…and any good mexican restaurant does not make you pay for chips and salsa…

      Report Post » midwesthippie  
    • brezzeone
      Posted on August 31, 2012 at 2:44pm

      What is the big deal here. A penny one way or the other. Get a life

      Report Post »  
    • Bayoublazer
      Posted on August 31, 2012 at 4:36pm

      This is called…stealing.

      Report Post »  
  • Wrabbit2000
    Posted on August 30, 2012 at 4:47pm

    I have to observe here that pennies to an individual becomes very big money to the corporation perpetrating it upon the public. Sheer scale and numbers do all the work to turn a few cents into enough to really choke on for the larger effect. This would be called something far more inline with criminal prosecution if, say, hackers set up a system to skim a few pennies per transaction then collected the proceeds. Funny how it’s a rounding error when others do it to us?

    Report Post »  
    • grayling646
      Posted on August 30, 2012 at 5:09pm

      Exactly. Let’s do a little math. If you have a store and have enough customers/volume to skim $10 a day that’s $300 a month. If you can skim $100 a day that’s $3000 a month. If you’re a franchise with multiple, high volume stores like this one….
      Y‘all know the saying ’pennies make dollars’. In this case I think we can safely say ‘pennies make tens of thousands of dollars’.

      Report Post »  
    • The-Monk
      Posted on August 30, 2012 at 6:59pm

      With the randomness of “rounding” it looks like the will lose about the same that they overcharge.

      The photo of the receipt shown shows a -0.01, a loss of one cent to the business and a gain of one cent to the customer.

      Still looks like a prelude to the demise of the Penny.

      The Government has been talking about this for many years.

      Report Post » The-Monk  
  • grayling646
    Posted on August 30, 2012 at 4:39pm

    This has been years ago. An old man owned a little country store just ‘up the road’ from here and he had a new broom leaning against the counter at the register on the customer side. Any time a stranger came in and purchased multiple items he would include the cost of the broom as well. When the customer left the broom was still there and the money was in the register. After he sold the store and retired he would brag, “I sold that broom a million times”.

    Report Post »  
  • semihardrock
    Posted on August 30, 2012 at 4:37pm

    I figure it’s those pennies that have been keeping them in business and a TRUE Stimulas. As soon as there is a new President…..it’s over!

    Obama will cost us SOOO much more! For all those concerned, write it off as a loss on your taxes…All are waiting for DOJ to go after Chipolte….I dare them! The pot calling the kettle…….

    Report Post » semihardrock  
  • JUSTANOTHEROPINION
    Posted on August 30, 2012 at 4:35pm

    This “Bathroom code” subject could be a nice addition to this story if THEBLAZE was to choose to add it for there readers. So, I am officially asking THEBLAZE to look into this for us and satisfy our curiosity.

    Report Post »  
  • WhiteFang
    Posted on August 30, 2012 at 4:28pm

    Everyone should get rid of penny’s. All prices and taxes should be to the nickel. Problem solved.

    Report Post » WhiteFang  
    • WhiteFang
      Posted on August 30, 2012 at 4:39pm

      Most people I see actually refuse to get a couple of penny’s as change. If we see a penny on the ground, do we pick it up?
      In the past you could actually buy something with nine cents. Today we deal in dollars, not penny‘s because a couple of penny’s are worthless.

      Report Post » WhiteFang  
    • Exrepublisheep
      Posted on August 30, 2012 at 4:41pm

      I agree.

      Report Post » Exrepublisheep  
    • v15
      Posted on August 30, 2012 at 5:20pm

      keep any pennies printed in 1982 and older.

      Report Post » v15  
    • Toltepeceno
      Posted on August 30, 2012 at 5:27pm

      WhiteFang I pick up ANY penny I see…..or any other coin.

      Report Post » Toltepeceno  
    • garylee123
      Posted on August 30, 2012 at 6:06pm

      If you don’t want your pennies, send them to me.

      Report Post »  
    • Shadow5618
      Posted on August 30, 2012 at 7:09pm

      Not the point, WhiteFang. It’s the principle of the thing. They are stealing from you a penny at a time. If you want to donate your pennies to them and say “keep the change”, that’s great – but rounding up doesn’t give YOU the option to choose. The restaurant chooses for you. I am VERY DISAPPOINTED in Chipotle and very glad this was exposed for what it is- theft.

      Report Post »  
    • Tresse
      Posted on August 30, 2012 at 10:54pm

      How long will it be before you want to eliminate the nickel and just have amounts with 0′s on the end?

      Report Post »  
    • california_red
      Posted on August 31, 2012 at 12:18am

      Your comment instantly made me think that The government will start to add the rounding to the tax owed.

      Report Post »  
  • riseandshine
    Posted on August 30, 2012 at 4:27pm

    I‘m glad the government doesn’t rip us off.

    Report Post » riseandshine  
    • the_zazzy
      Posted on August 30, 2012 at 4:31pm

      Are we really complaining about this? So, if I go to Chipotle 100 times, I’ve spent $1.00 more than I should have? That’s it, I’m switching to Qdoba!!!! C’mon folks, let‘s focus our attention on the government who’s ripping us off BLIND!!!!

      Report Post » the_zazzy  
    • Toltepeceno
      Posted on August 30, 2012 at 5:31pm

      the_zazzy If you feel that way then save a penny every time you eat out and mail me a check at the end of the year. I’m poor enough to think about this. Who says they were only doing it to a penny? If they were rounding up to the nearest nickel then 10.41 would be 10,45. How much can that add up to in a year? Not much if you are well off I guess.

      Report Post » Toltepeceno  
    • TEXASGRANNY73
      Posted on August 30, 2012 at 7:25pm

      @The-Zazzy Haven’t read too many comments but up to this one different folks have different thoughts. So, let‘s all vote on that penny and then let’s all vote on Obamacare. Same difference. Obama cheats one person and gives to another.. Coins in reality have no value. Same with a paper dollar. You can dot the i and cross the t but cheating is cheating on any level. Ever wondered why a “sale” on something costs 1.99 instead of 2.00? I have heard it was a penny for tax. I dunno but why can‘t they just say it’s 2.00? If a nation wide chain takes an extra penny when it comes tax time lotsa bucks involved. I am the least smartest person about money but….I wouldn’t give up good food if the restaurant is doing the right thing and even turned it around. Glad people notice these things.

      Report Post »  
  • reconmarine
    Posted on August 30, 2012 at 4:21pm

    Why all of the complaining? Apparently the extra penny is for the bathroom code at the bottom of the receipt. That could come in handy!

    Report Post »  
    • Jaycen
      Posted on August 30, 2012 at 4:28pm

      In Missouri, Quick Trip always rounds in your favor. If your change is $0.03, they hand you a nickel.

      It’s been that way for at least the last two years. That’s a company that “gets it right”.

      Report Post » Jaycen  
    • The Sergeant Major
      Posted on August 30, 2012 at 4:43pm

      “Bathroom code” is that not a raciest statement? Once again BHO has his hands in your pockets or in your burrito

      Report Post » The Sergeant Major  
  • youshuthehellup
    Posted on August 30, 2012 at 4:19pm

    If you all pay attention – the 7-11 stores do that a lot!!!!

    Report Post »  
  • RJJinGadsden
    Posted on August 30, 2012 at 4:16pm

    Makes me think about purchasing gasoline. Check you pumps price. It always ends with a “.9″. Do you think that once you are finished pumping that any amount less than one cent is rounded up or down? One time and one time only I came across two gas stations in our town having their very own little gas war. One was across a highway from the other and had actually marked their gas down to ten cents a gallon, and in 1969 I had been paying 29.9 cents per gallon on the norm. This was back when they pumped the gas and you had to buy in even gallons. I filled my ‘64 Chevy’s near empty 22 gallon tank for two bucks. I think that is the only time my gas price was never rounded up.

    Report Post » RJJinGadsden  
    • grayling646
      Posted on August 30, 2012 at 5:00pm

      RJ

      I used to own a gas station. The pumps actually calculate on 0.9. The Dept of Agriculture ( as you know, the government regulates everything) would come by about twice a year and check. He would pump exactly 5 gallons into a container and the math had better add up. I can’t remember the margin of error but it was minuscule, less than (then, for Paul supporters) an ounce I think. The guy’s name with Ag was Bill. He was one of the few bureaucrats I dealt with who was a decent, down to earth guy. The rest of them were so arrogant you could smell them coming.
      Before anyone asks, he would pour the gas back into the UST (underground storage tank).

      Report Post »  
  • Chromo200
    Posted on August 30, 2012 at 4:09pm

    Income redistribution …

    Report Post »  
  • mamatango
    Posted on August 30, 2012 at 4:08pm

    OK, now I want to know—–What is “Bathroom Code 6481”?????????????? ROFL

    Report Post »  
    • Fedpro
      Posted on August 30, 2012 at 4:16pm

      “OK, now I want to know—–What is “Bathroom Code 6481”?????????????? ROFL”

      Well, I’m not positive about this, but my guess would be that they provide the combination to the bathroom for customers so that walk-ins, who only want to use the facilities, are excluded.

      Report Post »  
    • Elena2010
      Posted on August 30, 2012 at 4:16pm

      Ditto — I noticed that, too!

      I have friends who travel in Europe, and they hate the fee toilets they find all over there. In countries that do not take Euros, it’s a real pickle if you need one NOW!

      Report Post » Elena2010  
    • Darmok and Jalad at Tanagra
      Posted on August 30, 2012 at 4:21pm

      That is the PSI your meal will be exiting your body.

      Report Post » Darmok and Jalad at Tanagra  
    • 13th Imam
      Posted on August 30, 2012 at 4:35pm

      Dar
      your joke was explosive

      Report Post » 13th Imam  
  • hauschild
    Posted on August 30, 2012 at 4:05pm

    Like my old Company Commander used to say, “If ya ain‘t cheatin’, ya ain‘t tryin’!”

    Report Post »  
  • TexasArmadillo
    Posted on August 30, 2012 at 4:05pm

    Wow, I have never seen a bathroom code on a receipt. At least they can get a free kids meal.

    Report Post » TexasArmadillo  
  • watersRpeople
    Posted on August 30, 2012 at 4:03pm

    Oh gee what a big shocker. I remember 10 years ago when I was going to college a particular gas station’s pumps would roll over to 1 or 2 cents after prepaying and turning on the pump. Or how about in many places the number of prepay pumps that slow down the meter when it’s still 60 or 70 cents away from the total prepaid amount? No, they aren’t trying to take advantage of people in a hurry.

    Report Post »  
    • watersRpeople
      Posted on August 30, 2012 at 4:16pm

      And then (like Chipotle) there was that big grocery chain a dozen or so years back who got in trouble for skimming pennies from customers with the cash register programming.

      Report Post »  
    • watersRpeople
      Posted on August 30, 2012 at 4:18pm

      Almost all the time we are surrounded by constant corruption but most people choose not to see it because they are dead inside.

      Report Post »  
  • chips1
    Posted on August 30, 2012 at 4:03pm

    A hammer is $24.95 and add 7% tax= $26.70 and the bill to the Millitary is $845.93. They must have rounded up. What’s good for the government is good for America!!!!

    Report Post »  
    • reconmarine
      Posted on August 30, 2012 at 4:22pm

      That’s the military discount added.

      Report Post »  
    • Lt_Scrounge
      Posted on August 30, 2012 at 6:14pm

      Honestly, the reason why the military is paying an outrageous amount for everything is that everything has to be inspected to the nth degree. If they simply said “Claw hammer with a 16 oz forged steel head and a wooden handle”, they could simply get the ones from the nearest Ace Hardware. But, they don’t. They insist on dozens of pages of specifications, huge performance bonds and extensive testing. Then they buy the top of the line tools and if a soldier loses one, they try to take it out of their pay. We used to solve the problem by going to the local low cost tool store and issuing the mechanics a $5 dollar socket set to use and locking their $200 one in a cabinet. Same thing for most of their other non specific tools. On occasion we even went down to Sears to replace the Craftsman ones that were lost or stolen. Since the property logs never showed what brand a tool was, we could slip in a commercially purchased one to avoid the soldier getting charged for a lost tool. We even had IIRC a Blue Point brand tap and dice set that was over $200. We kept that thing locked in the tool room except when it was actually in use. Of course a Craftsman set from Sears would’ve cost under $100 and work just as well.

      Report Post »  
  • Wildblue3
    Posted on August 30, 2012 at 4:02pm

    Now I’m really glad I eat at Freebirds. Not only are the ingrediants fresher, food better, and personell nicer, they won’t steal from you!!!

    Report Post »  
  • Smoke Ranch
    Posted on August 30, 2012 at 4:02pm

    It isn’t very good food anyway.

    Report Post » Smoke Ranch  
    • txblaze
      Posted on August 30, 2012 at 4:17pm

      I agree. We have one close to us and I can’t even remember the last time I ate there. Chipotle is not the only game in town here in SE Texas. We have LOTS of choices when craving Mexican food.

      Report Post »  
  • starman70
    Posted on August 30, 2012 at 4:00pm

    Rounding up 1cent on every order across the USA would bring in millions of dollars in a year.

    What is wrong with just charging the real price and not rounding eithe up or down.

    Report Post »  
    • Brad Wesselmann
      Posted on August 30, 2012 at 4:30pm

      I want to know how accounting filed that revenue when reconciling their balance sheets with receipts and taxes paid….what column did the millions of pennies collected go into?

      I personally don’t care if they made more money, I care whether they stole it or not and if they didn’t not notify the customer of the practice then it was stealing.

      Report Post » Brad Wesselmann  
  • CaptRory
    Posted on August 30, 2012 at 3:58pm

    Most discoveries aren’t heralded by shouts of “Eureka!“ but by someone stating ”Huh. That’s weird.”

    Report Post » CaptRory  
  • billrow
    Posted on August 30, 2012 at 3:56pm

    I guess they were trying to pull a Superman III

    Report Post »  
  • zoro51
    Posted on August 30, 2012 at 3:55pm

    sue the restruant for PRICE FIXING GOUGING AND THEFT

    Report Post » zoro51  
  • SREGN
    Posted on August 30, 2012 at 3:53pm

    Office Space and Superman #3, I think it was. The one with Richard Prior.

    Report Post »  
  • KangarooJack
    Posted on August 30, 2012 at 3:51pm

    Whoa! Major MAJOR big NO NO! It’s called STEALING!

    Report Post » KangarooJack  
  • NSDQ
    Posted on August 30, 2012 at 3:49pm

    So many worthwhile causes to pursue and champion poverty, sickness, woman’s rights, and pennies rounded at Chipoltle is championed …Well Done Sir!!! Well Done!!

    Report Post » NSDQ  
    • RightUnite
      Posted on August 30, 2012 at 3:58pm

      Yeah… That’s right…. Just because it‘s not your cause it’s not worthy, right??

      Report Post »  
    • Stacey
      Posted on August 30, 2012 at 4:12pm

      well..NSDQ….it’s not your money…so don’t worry about it…right?!…………gee…where have I heard that before??

      Report Post » Stacey  
    • KangarooJack
      Posted on August 30, 2012 at 4:46pm

      So true!
      Let‘s examine ’worthwhile’ causes.
      Poverty. Poverty {been there…still doing that according to gov’t statistics. Yet, I am rich beyond belief according to myself.} Poverty can be overcome by NOT spending more than you take in. Make life choices that do not bring MORE costs, and get off your a** and work!
      Sickness. Sickness {again, been there done that. 1st name basis for a local collection agency regarding medical bills. Took me a few yrs. but they got paid PLUS interest/fees. Sent Christmas cards to Hank at Adrian Collection Bureau because he was decent} Sickness happens and is often unexpected…so is everything else in life.
      Women’s Rights. I AM a woman. I happen to think it is WRONG for a different set of criteria to be in the military/police/ and ESPECIALLY Firefighting. If my kids are in a burning room, I want the firefighter who can SAVE them to have the job vs. a woman who got the job just because she is a woman. {Same applies regarding Affirmative Action}. So, as a woman, what “Rights” am I not experiencing at the moment???? Seriously, WHAT RIGHTS don’t I already HAVE?

      This may be a surprise to you, but Doing Good/Changing things for the Better…it ALL starts at home. It ALL starts out small.

      Report Post » KangarooJack  
    • Toltepeceno
      Posted on August 30, 2012 at 5:32pm

      If you are on welfare it’s not your money anyway.

      Report Post » Toltepeceno  
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