Chipotle could raise menu prices due to inflation again

Chipotle increased the price of its menu by 4% in June to increase the salary of its workers.

Chipotle increased the price of its menu by 4% in June to increase the salary of its workers.

Photo: Michael M. Santiago/Getty Images

Although Chipotle hasn’t reported an eventual menu price hike, it’s possible as inflation continues, CEO Brian Niccol told The Wall Street Journal.

According to Chipotle’s fourth quarter 2021 sales report, the fast food chain reported sales that beat expectations as revenue rose 22% year over year to $2 billion.

The brand’s financial director, John Hartung, indicated that Chipotle’s fourth quarter margin was affected by inflation, mainly in relation to the price of meat and its transfer, the executive added that the cost of avocados avocados also rose.

According to data from the United States Department of Agriculture, wholesale beef prices rose as much as 46% over the course of 2021. In addition, transportation fee costs increased considerably in October, according to Cass data. Information Systems.

On the other hand, Bloomberg pointed out that avocado costs recently represented an all-time high due to a increase in production costsa labor shortage and a bottleneck in the supply chain.

All these hikes in grocery prices prompted Chipotle to set menu cost adjustments by 4% in December, John Hartung said. The restaurant chain also raised prices on the entire menu last June.

Menu prices are now approx. 10% higher than in the first quarter of last yearBrian Niccol noted on the earnings call.

According to the Chipotle website, a chicken burrito costs $10.30 in New York City. That’s about 8% more expensive than its retail price of $9.50 last June, USA Today reported.

The Bureau of Labor Statistics recently noted that the entire fast-food industry is struggling with inflation, which hit a 40-year high of 7% year over year last December.

Restaurants are also grappling with rising labor costs in a tight job market amid a slew of resignations as many workers who remain in the workforce demand pay raises.

Experts have said that inflation will continue throughout this year, but until 2023 the prices of goods and services are expected to fall.

You might also be interested in: 14.5% of the private sector increased wages and gave bonuses to workers for Covid in 2021