Chipotle Mexican Grill, the popular fast-casual restaurant chain, is set to raise its menu prices for the first time in over a year. The decision comes as the company aims to offset inflation, according to Laurie Schalow, Chipotle’s Chief Corporate Affairs Officer. However, the exact amount by which prices will increase has not been disclosed.
Inflation, which peaked in June, has since cooled down, with prices still rising but at a slower rate. The consumer price index rose by 3.7% in August compared to a year earlier, marking a significant decrease from the 8.3% increase seen previously.
Chipotle began raising prices in June 2021 due to rising employee wages and increased prices again in the first three months of 2022 and July of the same year. However, the chain temporarily paused its price hikes as some customers reduced their restaurant spending and ingredient costs stabilized.
In April, Chipotle’s CEO, Brian Niccol, announced that the chain would hold off on further price increases after demonstrating its pricing power. At that time, prices were already up by approximately 10% compared to the previous year. However, three months later, Niccol revealed that Chipotle would reconsider its pricing as the fourth quarter approached.
The news of Chipotle’s upcoming price increase was first reported by Insider. This announcement comes as the company’s stock has risen by an impressive 30% this year, resulting in a market value of $50.1 billion. Chipotle is expected to report its third-quarter earnings on October 26.
As Chipotle plans to raise prices once again, customers can expect some changes in their favorite dishes’ costs. The company’s decision to offset inflation reflects the ongoing economic challenges faced by many businesses across various industries.
