Chipotle is weighing whether or not to boost its costs to maintain up with rising prices for elements like avocados, queso and bitter cream, in line with a report.
The Newport Seashore, Calif.-based firm’s new finance chief, Adam Rymer, instructed The Wall Avenue Journal he believes clients would proceed to flock to Chipotle regardless of the “modest” worth hikes as a result of the chain would nonetheless be a greater worth choice than its rivals.
Chipotle has not but determined when the worth hikes would take impact, or how massive the hikes could be, Rymer instructed the Journal.
Chipotle didn’t instantly reply to a request for remark.
Whereas fast-food giants like McDonald’s, which in July posted its first gross sales drop since 2020, have suffered as clients flip away from excessive costs, Chipotle has continued to shine.
Identical-store gross sales grew 6% within the three months ended Sept. 30 in comparison with the identical interval final 12 months. Income rose 13% to $2.8 billion from the 12 months earlier than.
Rymer, who mentioned he’s centered on sustaining Chipotle’s give attention to worth, grew to become the chief finance officer in October three months forward of schedule after Chipotle’s then-CEO Brian Niccol’s sudden departure to guide Starbucks. Rymer has labored in numerous roles, together with vice chairman of finance, at Chipotle over the previous 15 years.
The potential raised costs wouldn’t be the primary hikes to hit Chipotle’s menus. The Mexican chain’s costs have shot up six instances since 2021 – the newest taking impact in April via the corporate’s California eating places after Gov. Gavin Newsom raised the minimal wage to $20 an hour for fast-food employees.
However Chipotle’s worth adjustments are lagging opponents’ worth hikes, preserving its eating places a comparatively inexpensive choice.
Shifting ahead, Rymer is raring to spice up visitors and gross sales by chopping down wait instances for purchasers to obtain their orders.
To take action, Chipotle is taking the technological route – utilizing robotic methods just like the “Autocado” to swiftly minimize, core and peel avocados.
The corporate additionally expects to implement produce slicers throughout all of its places by subsequent summer time to chop down on time spent dicing peppers and onions, Rymer mentioned.
