Chipotle raising prices to offset its $15 minimum wage hike
By Jordan Smith
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Customers can expect to see higher menu prices at Chipotle going forward.
The fast-casual Mexican food chain announced it would be raising menu prices by as much as 4% to offset the cost of the employee pay raises announced last month, FOX Business reported. By the end of June, the average hourly wage for Chipotle employees will be $15.
Chipotle executives on Tuesday said they raised menu prices by about 4 percent to make up for the company s recent decision to give its workers higher wages.
Company CFO Jack Hartung said at the virtual Baird Global Consumer, Technology & Services Conference that the restaurant chain would “lose the staffing gain” if it did not implement changes to cover the cost of raising workers’ wages to an average of $15 per hour.
“It feels like the right thing, at the right time, and it feels like the industry is now going to have to either do something similar or play some kind of catch-up,” he said, according to CNBC.
It s not your imagination. Your Chipotle burrito costs more.
The fast-casual chain raised menu prices 3.5 to 4% to help offset an increase in employee wages, Chipotle Chief Financial Officer Jack Hartung said at the Baird Global Consumer, Technology & Services Conference Tuesday.
Chipotle announced in May it was hiring 20,000 employees and raising its average hourly wage to $15 by the end of June. Starting pay will range from $11 to $18 an hour, the company said. We really prefer not to take pricing, but it made sense in this scenario to invest in our employees and get these restaurants staffed and make sure that we had the pipeline of people to support our growth, CEO Brian Niccol said at the Baird conference. We ve taken some pricing to cover some of that investment.