It is not your imagination. Your Chipotle burrito costs more.
The fast-casual restaurant chain has raised menu prices 3.5% to 4% to help offset an increase in employee wages, Chipotle CFO Jack Hartung told the Baird Global Consumer conference, Technology & Services Tuesday.
Chipotle announced in May that it was hiring 20,000 employees and increasing its average hourly wage to $ 15 by the end of June. The starting salary will range from $ 11 to $ 18 an hour, the company said.
“We would really prefer not to take a price, but it made sense in this scenario to invest in our people and staff these restaurants and make sure we have the pipeline of people to support our growth,” said CEO Brian Niccol at the Baird Conference. . “We took prices to cover part of this investment.”
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Niccol said the percentage increase equates to “quarters and pennies that we are layering in”.
After the increase, he said, a chicken burrito was still “well under $ 8,” with the exception of higher-priced markets such as New York City. In New York City, a chicken burrito costs $ 9.50 compared to $ 7.65 in Fort Lauderdale, Florida, or $ 7.75 in a Chipotle in Topeka, Kansas.
Hartung said the industry is feeling inflationary pressures, which are focused on work.
“Our approach was to move forward and lead, first invest in our people, then do the right thing,” he said. “It feels like the industry is now going to have to do something similar or play some kind of catch-up.”
McDonald’s said in May it was increasing wages by an average of 10% at company-owned establishments.
Hiring resumed nationwide in May, with employers creating 559,000 jobs amid declining COVID-19 cases, easing business constraints and ramping up vaccinations, more than offsetting continuing shortages of workers.
Leisure and hospitality, the sector hardest hit by the pandemic, created 292,000 jobs in May as restaurants and bars rehired laid-off workers.
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