Written by AP Business Writer DEE-ANN DURBIN
In order to counteract inflation and make up for its pledge to increase portion sizes, Chipotlei is increasing its prices in the United States.
Laurie Schalow, the chief corporate affairs officer for Chipotle, announced on Friday that the Mexican restaurant chain was raising prices nationwide by 2%. According to Schalow, this is the first price increase the California-based business has made in over a year.
Following an analyst report earlier this week by investment firm Truist Securities that indicated a 2% price rise at around 20% of the chain’s 3,500 U.S. locations, Chipotle announced the price increase.
In addition to raising its price estimate for Chipotle’s stock, Truist noted that the number of patrons visiting the chain’s eateries increased in November.
In October, Chipotle announced that the third quarter saw increases in the costs of its food, beverages, and packaging. It gave the example of avocados.
After two U.S. Department of Agriculture employees were attacked and briefly detained by attackers in the Mexican state of Michoacan, avocado exports from Mexico to the United States were temporarily halted in June.
Chipotle also mentioned the expense of making sure its patrons were receiving regular and substantial servings. Following social media complaints from patrons over receiving lesser amounts, former Chairman and CEO Brian Niccol announced in July that Chipotle was retraining employees at about 10% of its locations.
In September, Niccol departed Chipotle to take over as chairman and CEO of Starbucks, which has stated that it will not raise prices until September 2025.
Inflation in restaurant prices has irritated American customers. According to government data, the cost of eating out increased by 30% between October 2019 and October 2024. During the same time period, the cost of food consumed at home increased by 27%.
McDonald’s said earlier this year that pricing increases were causing more customers to eat at home rather than buy fast food. In response, the business offered a $5 dinner bargain along with further savings.
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