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Chipotle’s chief corporate affairs officer, Laurie Schalow,
confirmed Friday that the Mexican restaurant chain was
implementing a 2% price increase nationally. Schalow said it's
the first time the California-based company has raised its
prices in more than a year.
Chipotle revealed the price increase after an analyst report
released earlier this week by investment bank Truist Securities
noted a 2% price increase at approximately 20% of the chain’s
3,500 U.S. stores.
Truist, which raised its price target for Chipotle’s shares,
also reported that customer traffic at the chain's restaurants
accelerated in November.
Chipotle said in October that its food, beverage and packaging
costs all increased in the third quarter. It cited avocados as
an example.
Avocado shipments from Mexico to the U.S. were briefly suspended
in June after two U.S. Department of Agriculture employees were
assaulted and temporarily held by assailants in the Mexican
state of Michoacan.
Chipotle also cited the cost of ensuring it was providing
“consistent and generous portions” to its customers. Former
Chairman and CEO Brian Niccol said in July that Chipotle was
retraining workers at approximately 10% of Chipotle's stores
after customers complained on social media that they were
getting smaller portions.
Niccol left Chipotle in September to become the chairman and CEO
of Starbucks, which has said it won't raise prices through
September 2025.
Restaurant price inflation has aggravated U.S. consumers. The
price of food eaten away from home rose 30% between October 2019
and October 2024, according to government figures. The price of
food eaten at home rose 27% in that same period.
Earlier this year, McDonald's said it was seeing more customers
eat at home instead of getting fast food because of price
increases. The company responded with a $5 meal deal and other
discounts.
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