Chipotle, the California-based Mexican restaurant chain, is increasing its U.S. prices by 2% nationwide. The move aims to offset rising inflation and meet customer expectations for larger portions. This change comes after a report by investment bank Truist Securities noted a similar price hike at nearly 20% of Chipotle’s 3,500 US stores.
The price increase is partly due to increased costs, including avocados, which had their shipments suspended in June amid security concerns. Chipotle has also invested in retraining workers to provide consistent and generous portions, which may have contributed to the cost increase.
Restaurant industry experts warn of ongoing inflation pressures affecting consumers. Food prices eaten away from home rose 30% between October 2019 and October 2024, while food at home increased by 27% during the same period. McDonald’s recently adjusted its strategy in response to these price hikes, introducing a $5 meal deal and other discounts.
Chipotle’s decision to raise prices is part of broader efforts by restaurants to mitigate inflation’s impact on customer demand.
Source: https://apnews.com/article/chipotle-raising-prices-food-inflation-68c01a6b3b663bee97d00ca629427d8b