When you buy something through one of the links on our site, we may earn an affiliate commission.
Chipotle Mexican Grill, the popular fast-casual restaurant chain, is considering a price hike as the cost of raw materials goes up.
This move comes as the company grapples with rising costs, including higher wages and increased food prices.
Chipotle’s new finance chief, Adam Rymer, told The Wall Street Journal he, “believes customers would continue to flock to Chipotle despite the “modest” price hikes because the chain would still be a better value option than its rivals.”
The reasoning being that they celebrated record profits in 2023 despite several price increases.
Chipotle’s former CEO Brian Niccol’s left the company for Starbucks last month.
The price hike is expected to be modest, with Chipotle aiming to maintain its “great value” proposition while still charging a “fair price. The company has not yet disclosed the exact amount of the price increase or which menu items will be affected
This will be the sixth time Chipotle has raised prices in the past four years, the last being this past April.
Despite the price increases, Chipotle has continued to see strong sales and customer traffic.
Rymer says he is focusing on value and cutting down customer order wait times. The chain has been experimenting with the robot Autocado that slices avocados and reducing the time employees spend preparing ingredients.
Chipotle also faced heat in the past 6 months for skimping on ingredients as users took to social to call them out. Chipotle was forced to take steps and adjust portion guidelines – even retraining employees.
It will be a fine line because another price increase could make it even more difficult for some customers to afford their favorite Chipotle meals.
As costs continue to rise, it is likely that other restaurant chains will follow suit. This could lead to higher prices for consumers across the board.
Related Reads
