The Mexican food chain, Chipotle, has raised its prices for the first time in over a year. The company is experiencing more same-store sales and revenue despite being more expensive. This article analyzes how the popular restaurant is beating inflation.
Why Did Chipotle Prices Rise?
As most people are aware, the cost of everything is steadily increasing. However, two commodities in particular forced Chipotle to raise prices…
MEAT AND CHEESE.
The U.S. Department of Agriculture stated that the cost of beef reached an all-time high in April 2023. Another report from the USDA shows how cheese is also becoming more expensive.
Because the pair of foods is so prevalent in Mexican cuisine, the burrito brand had to adjust.
And although Chipotle has received criticism in the past for hiking prices, it thrived in the third quarter of 2023…
Consumers REALLY Liked Burritos in Q3
Chipotle’s higher menu prices made a significant difference to their bottom line. The corporation exceeded its expectations in Q3.
Shares in the Mexican eatery were up 2%. Additionally, its net income was $313.2 million as opposed to $257.1 million at the same time last year.
You may want to claim that this is superficial due to higher costs per order. Yet, Chipotle CFO, Jack Hartung, commented customers are returning more often…
“I think the Chipotle value, when we haven’t raised prices in over a year until this latest action, is coming through, and people are choosing to dine at Chipotle because we are very affordable.”
It appears that the restaurant chain has its inflation survival blueprint locked and loaded. Nonetheless, does the brand plan to charge an arm and a leg for our Mexican food fix?
Will Chipotle Prices Go Up AGAIN?
Currently, Chipotle doesn’t have plans to raise their prices again nationwide…
HOWEVER, CALIFORNIA IS A DIFFERENT STORY.
Specifically, the company released a statement they had to swell prices in the Golden State. It attributes this decision to California’s decision to increase the state’s minimum wage.
That aside, the chain seems to have struck a balance between cost and customer satisfaction.
So, the question is, with Chipotle raising their prices, are you still willing to pay extra for guac?
Be Great,
GCTV Staff
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