Chipotle is raising US prices after promising bigger portions
Dec 6, 2024, 10:07 AM
FILE - The Chipotle Mexican Grill logo is seen on a storefront, Oct. 14, 2022, in Boston. (AP Photo/Michael Dwyer, File)
Credit: ASSOCIATED PRESS
(AP Photo/Michael Dwyer, File)
Chipotle is raising its U.S. prices to offset inflation and to compensate for a promise to increase portion sizes.
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.
