Yes, heard it right, Chipotle raise prices again! The Chipotle Mexican Grill has implemented a nationwide price increase, making its burrito bowls and other menu items slightly more expensive. The Chipotle menu prices have once again increased, as the company confirmed a modest 2% hike to address rising ingredient costs and inflationary pressures.
“This is our first price adjustment in over a year, with a modest 2% increase nationally to offset inflation,” stated Laurie Schalow, Chipotle’s chief corporate affairs officer. The adjustment comes as the fast-casual chain manages higher costs for key ingredients like avocados and dairy.
More Reasons Why Chipotle Raise Prices
According to Chipotle’s third-quarter financial report, food, beverage, and packaging costs accounted for 30.6% of revenue, compared to 29.7% in the same period last year. The surge was attributed to inflation on essential ingredients and efforts to maintain consistent portion sizes.
The popularity of limited-time menu items, such as smoked brisket, also played a role in increasing costs, as the demand for premium proteins grew. Data from the Consumer Price Index reveals that prices for beef, dairy, and fresh produce rose by 1.9%, 1.3%, and 1.4% respectively over the past year, further impacting Chipotle’s bottom line.
The last time when Chipotle raise prices occurred in October 2023. Previous hikes in June 2021 and August 2022 were implemented to support employee wage increases and offset inflation, with some entrees rising by over $1.
Despite these challenges, Chipotle reported strong growth, with total revenue increasing 13% year-over-year to $2.8 billion. The chain also announced plans for expansion, aiming to open up to 345 new locations in 2025, over 80% of which will include drive-thrus.
As Chipotle balances rising costs and continued expansion, customers may notice small changes in pricing while the company works to manage inflationary pressures.
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What did you think? Is the little hike in price going to affect the fast food company positively? Let’s have your comments in the box provided below.
