Fast-casual Mexican chain Chipotle has raised its menu prices by 2% to offset the impact of inflation on food costs, the company announced in a statement. The move comes after the company missed market expectations for same-store sales growth in October’s earnings report.
According to Laurie Schalow, Chief Corporate Affairs Officer at Chipotle, the price increase is due to rising ingredient costs, including avocados and dairy. The company has also seen higher usage of ingredients as it focuses on providing consistent and generous portions. Additionally, a shift in its protein mix from the success of its smoked brisket limited-time offer contributed to the price hike.
The rise in beef prices is particularly notable, with wholesale poultry prices dropping 4.5% compared to October last year, while beef prices rose 1.9%. This trend suggests that demand for beef remains strong, and prices are likely to increase further due to supply constraints.
This decision marks a shift in strategy for Chipotle, which has been navigating changes in leadership following the departure of former CEO Brian Niccol for Starbucks.
Source: https://eu.usatoday.com/story/money/food/2024/12/05/chipotle-menu-prices-increase/76797403007