Chipotle is set to implement a price increase across its U.S. locations in response to ongoing inflation and its commitment to enhance portion sizes.
Laurie Schalow, the chief corporate affairs officer of Chipotle, announced on Friday that the Mexican fast-casual chain is raising prices by 2% nationwide, marking the first price increase from the California-headquartered company in over a year.
The announcement follows an analyst report from Truist Securities which indicated that roughly 20% of Chipotle’s 3,500 U.S. outlets had already experienced this 2% price hike. This report also mentioned a jump in customer visits to Chipotle restaurants during November.
Chipotle disclosed that in the third quarter, there were increases in costs for food, beverages, and packaging, highlighting the rising prices of avocados as a specific example.
The situation with avocado supply was affected earlier in June when shipments from Mexico to the U.S. were temporarily halted due to safety incidents involving U.S. Department of Agriculture personnel in Michoacan, Mexico.
Additionally, the company acknowledged the need to ensure that customers received what it describes as “consistent and generous portions.” Former Chairman and CEO Brian Niccol announced in July that approximately 10% of Chipotle locations would undergo staff retraining due to customer feedback regarding portion sizes being perceived as smaller.
Niccol departed from the company in September to take on the roles of chairman and CEO at Starbucks, which has stated it will not increase its prices until at least September 2025.
Restaurant price inflation has been a significant concern for consumers in the U.S. According to federal data, the cost of dining out increased by 30% from October 2019 to October 2024, while the price of groceries rose by 27% in the same time frame.
Earlier in the year, McDonald’s observed a trend of more customers choosing to eat at home rather than purchasing fast food due to higher prices. In response, the fast-food giant introduced a $5 meal deal along with various discounts to attract diners.
