As if finals weren’t causing college students around the country enough stress, now there is news that Chipotle is raising the prices of its burritos. In my small college town, Chipotle is one of the few things that bring me joy and comfort, but when the minimum wage in Pennsylvania is $7.25 and if prices are going to continue to rise, it makes the whole situation a little less joyful and a lot more stressful.
Is Chipotle raising burrito prices?
Depending on what you add into your burrito (meat, queso, guacamole, etc…), the current price of one can range somewhere between $4.55 and $8.00. However, recently, Chipotle has been toying with the idea of raising the cost of its meals due to increased prices of key ingredients such as sour cream, avocado, and queso. The new Chief Financial Officer, Adam Rymer, isn’t afraid of losing business. He believes that Chipotle’s loyal customers will continue to order and eat there as it will still be more affordable than any of its competitors. As of right now, Chipotle hasn’t given any specifics in terms of how much its prices will increase by and when this increase would begin.
While other major fast food chains, such as McDonald’s, shared the news in July of their first sales drop since 2020 because of inflation and increased prices, Chipotle has continued to be successful. So much so, in fact, that its same-store sales grew 6% and revenue rose 13%.
Rymer, who took up the position of CFO in October, is fairly new to the Chipotle team. He has 15 years of experience in various roles at Chipotle, including vice president of finance, and claims to want to focus on value at Chipotle’s across the country. Only time will tell how Rymer’s potential solutions affect the chain.
Hasn’t Chipotle raised prices in the past?
These proposed price hikes aren’t the first time Chipotle has needed to sell its food at a higher cost. In fact, the chain’s prices have increased six times over the past three years. The most recent hike occurred in April in Chipotle’s across California after Governor Gavin Newsom increased the minimum wage for fast food workers to $20. Price hikes are only one of Rymer’s potential ideas for growing Chipotle’s sales and clients even further. His hope will be to increase traffic and sales by cutting down on the time customers have to wait for its orders. To do this, Chipotle is implementing new technology, like the “Autocado” which will be used to cut, core, and peel avocados at a quicker pace. Additionally, Rymer plans to add produce slicers to all Chipotle chains to make the process of cutting peppers and onions faster and easier.