Why Your Chipotle Order Could Soon Be More Expensive
People were outraged in June 2021 when Chipotle raised its prices to accommodate higher wages for its employees, according to CNBC.
CFO Jack Hartung remarked at the time that passing on these costs to customers made sense, and the business had no plans to raise menu pricing further due to continually rising ingredient prices.
That changed in October of last year, when Chipotle boosted menu pricing to combat inflation (via Fox Business). “Higher food, labor, and freight costs” were cited as some of the reasons for the decision.
Chipotle appears to have other plans to raise its prices. According to The Wall Street Journal, the Tex-Mex restaurant business has made large profits from earlier price increases and intends to utilize the proceeds to open up to 250 new sites by 2022.
The chain’s goal to expand, as well as rising labor and ingredient expenses, may drive price increases in the coming months. “Unfortunately, I don’t see inflation going away anytime soon,” Chipotle CEO Brian Niccol told the outlet.
When considering affordable lunch options, Chipotle menu prices offer great value for your money.
Chipotle’s Rising Prices Don’t Seem To Be Deterring Sales
Customers have grumbled about higher Chipotle costs, but they do not appear to be ordering less food or visiting the company less frequently.
According to The Wall Street Journal, Chipotle’s menu pricing are currently 10% higher than in 2022, despite sales increasing by more than 15% in the last year. These figures encourage the corporation to open additional locations than previously planned.
What This Means for You
If Chipotle does raise its prices, it will likely mean that your favorite burrito bowl or taco will cost more.
While the exact amount of the price hike is unknown, it’s safe to assume that it will be enough to impact customers’ wallets. This is especially true for loyal customers who visit Chipotle frequently.
The Impact on Chipotle’s Business
It’s not just customers who will feel the impact of a price hike at Chipotle. The company itself may face some challenges as well. If prices increase too much, it could deter customers from visiting Chipotle altogether.
This, in turn, could lead to a decrease in revenue and profits for the company.
Chipotle’s Strategy Moving Forward
Despite the challenges facing the restaurant industry as a whole, Chipotle remains optimistic about its future.
In addition to potentially raising prices, the company is also focusing on expanding its digital capabilities and investing in new restaurant designs to better serve customers.
The potential price increase is due to the rising cost of ingredients, labor, and transportation.
It is unclear when the price increase will take effect, but it could be in the near future.
The amount of the price increase is also unclear, but it could be anywhere from a few cents to a few dollars per item.
It is possible that the price increase will affect all items on the menu, but it may vary depending on the item.
Yes, other fast-food restaurants are also raising prices due to similar cost increases.
Unfortunately, there is not much customers can do to avoid the price increase, as it is driven by market conditions.
Chipotle has stated that it is committed to maintaining the quality of its food, even with the potential price increase.
It is unlikely that the portion sizes will be affected by the price increase.
Chipotle typically raises prices once a year, but this can vary depending on market conditions.
The COVID-19 pandemic has had an impact on the cost of ingredients, labor, and transportation, which is a factor in the potential price increase.