Chipotle warns more price hikes are coming

Chipotle meal
Photo credit Getty Images | Scott Olson/Staff

Citing inflation, the Chipotle Mexican Grill franchise is raising its prices for the second time in the last four months.

CEO Brian Nicoll made the announcement during an earnings call with Wall Street analysts on Tuesday, as reported by CBS News, saying prices at the chain will rise by a little over 6% in 2022. That follows a 4% increase in December 2021.

That’s a 10% hike since the calendar changed from autumn to winter.

“It's really the last thing we want to do, but we're fortunate that we can pull it off,” Nicoll said while projecting his opinion that customers won’t object. “We see no resistance to date with the levels that we're currently at.”

Prices for some of the chain’s most essential menu components like beef and avocados have risen recently, as have the prices of freight and labor, Nicoll said, an assessment backed by Chief Financial Officer John Hartung.

“We keep thinking that beef is going to level off and then go down. It just hasn't happened yet,” Nicoll said. Indeed, the price of beef has risen by more than 20% in the last year.

Chipotle is far from the only restaurant chain to indulge in price hikes in the last 12 months. McDonald’s, Starbucks and Little Caesars, among others, have also had to raise the cost to consumers of their various edible offerings.

Featured Image Photo Credit: Getty Images | Scott Olson/Staff