Restaurant chain is paying more for beef, avocados and freight — and passing those costs on to consumers.
Chipotle Mexican Grill is jacking up its menu prices, citing higher costs linked to. The restaurant chain plans to raise prices a little more than 6% this year, CEO Brian Niccol told Wall Street analysts in an earnings call on Tuesday. Chipotle also hiked its prices by 4% in December, with its offerings now about 10% more costly than they were only a year ago. “It’s really the last thing we want to do, but we’re fortunate that we can pull it off,” the executive said of its pricing moves and customer behavior. “We see no resistance to date with the levels that we’re currently at.” Chipotle’s costs have increased in recent months, especially for labor, freight, beef and avocados, both Niccol and Chief Financial Officer John Hartung said during the call.
