Chipotle has already raised prices on this 2022, but is likely to do so again due to lingering inflation, according to company CEO Brian Niccol .
Niccol said he just doesn’t see inflation going away any time soon. He made these comments just as the fast food chain reported better-than-expected fourth-quarter sales for 2021. Their revenue increased by 22% to $2,000 million dollars.
Despite these good numbers, Chipotle’s fourth quarter margin was affected by inflation, mainly in the price of meat and transportation, said the company’s CFO, John Hartung. In addition, some foods, such as avocados, also cost more these days.
Furthermore, wholesale beef prices increased by up to 46% over the course of 50, US Department of Agriculture data shows. On the other hand, trucking rates in the US increased in October at a rapid pace.
avocado also recently reached an all-time high due to rising production costs, labor shortages and a bottleneck in the supply chain.
Rising ingredient costs have already forced Chipotle to raise prices by 4% in December. The Mexican food chain also increased prices on all menu items in June and they are now approximately 10% higher than in the first quarter from last year.
For example, a chicken burrito now costs $10.46 dollars in New York City. That’s about 8% more expensive than its $9.50 price last June.
Chipotle has also had to increase the minimum wage of employees at $15 dollars per hour, when before they paid $11 The time. This is to retain workers and prevent them from quitting in search of better jobs.
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