Chipotle’s Price Increases Keeping Restaurant Steady
Even large franchises are not exempt from price increases, and Chipotle recently announced a 4% adjustment in their menu prices. The decision was made as “commodity inflation has stabilized, but is expected to remain high into 2023, Chipotle Mexican Grill Chief Financial Officer Jack Hartung” reported to Nation’s Restaurant News. “There is nothing we can see on the horizon that says things are going to retreat, that things are going to go down. But things have, at least for the time being, stabilized.”
NRN also wrote, “As prices have crept up at Chipotle, Niccol said the chain has seen little resistance from guests.” But even as a successful and recognizable change, the business is wary of further increases. “Gosh, I really hope we don’t have to take more pricing,” he said, but added, “If [inflation] moves and we can’t find efficiencies to offset it, the good news is we have pricing power to make a move.”
Richard Weil, owner of National Restaurant Consultants (NRC), says, “Realizing that the inflation on the consumer price index for food was recently reported as high as 18% year over year, your peak business seasons may be the best time to plan price increases.” National Restaurant Consultants uses cost-analysis to appropriately adjust menu prices and structure to maintain financial stability, helping owner-operators prepare for their fiscal year.