Irene Jiang / Business Insider
- Chipotle plans to raise prices in August "in the mid to high single digits."
- This amounts to between 50 cents and $1.10 per an entree in most markets.
- Chipotle sales continue to grow, and customers don't seem bothered by growing prices.
Chipotle just announced plans to raise prices again in August.
The fast-casual chain said in a second-quarter earnings call that the next price increase would be "in the mid to high-single digits" in terms of percentage. That means in New York City customers will be asked to pay an additional $.58 to $1.04 on the lowest-priced regular menu item: a chicken burrito or bowl priced at $11.55.
Chipotle has been open about raising prices over the last year. In the first quarter of 2022, Chipotle raised menu prices by 4%, CFO Jack Hartung told investors on an earlier call. Those were on top of earlier price hikes in part due to raising wages for employees in June 2021 when the fast-casual chain said that it raised prices about 4%.
The last time Chipotle raised prices, customers didn't seem to mind. Over a year after the highly publicized price increases last summer, Chipotle has seen "very little resistance to the pricing so far," Hartung previously told investors. In the most recent quarter, sales were up over 10% over the same period last year despite continued increases.
Continual price increases have become the norm across the industry thanks to rampant inflation at a 40-year-high. Chipotle noted "higher costs for avocados, packaging, dairy, beef, and chicken," all eating into any benefits it might have seen from price increases.
Food away from home, which includes restaurants, is up 7.7% over last year according to the Consumer Price Index, and food overall is up 10.4%. Other chains have also increased prices. McDonald's just said in a recent earnings call that it raised US prices in the high single digits in the most recent quarter, and Starbucks has also said it has several planned price increases for the year.
This is a developing story. Check back soon for updates.
Do you have a story to share about a retail or restaurant chain? Email this reporter at mmeisenzahl@businessinsider.com.
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