Chipotle raises prices after promising bigger portions
Chipotle is raising its prices in the United States to offset inflation and its promise to increase portion sizes.
Chipotle’s director of corporate affairs, Laurie Schalow, confirmed Friday that the Mexican restaurant chain is implementing a 2% price increase nationwide. Schalow said it was the first time the California-based company had raised prices in more than a year.
Chipotle revealed the price increase after an analyst report released earlier this week by investment bank Truist Securities noted a 2% price increase in about 20% of the chain’s 3,500 U.S. stores .
Truist, which raised its price target for Chipotle shares, also reported that traffic at the chain’s restaurants accelerated in November.
Chipotle said in October that its food, beverage and packaging costs all increased in the third quarter. He cited lawyers as an example.
Avocado shipments from Mexico to the United States have been briefly suspended in June, after two U.S. Department of Agriculture employees were assaulted and temporarily detained by attackers in the Mexican state of Michoacan.
Chipotle also cited the cost needed to ensure it provides “consistent and generous portions” to its customers. Former President and CEO Brian Nicol declared in July that Chipotle retrained workers in about 10% of Chipotle stores after customers complained on social media that they were receiving smaller portions.
Nicholas left Chipotle in September to become president and CEO of Starbuckswho said he would not raise prices until September 2025.
Restaurant price inflation has annoyed American consumers. The price of food consumed away from home increased by 30% between October 2019 and October 2024, according to government figures. The price of food consumed at home increased by 27% during the same period.
Earlier this year, McDonald’s said he’s seeing more customers eating at home instead of going for fast food due to rising prices. The company responded with a $5 Meal Package and other discounts.
