Chipotle increasing menu prices to cover cost of raising employee wages

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You're going to have to pay extra for more than just guac!

Chipotle is increasing menu prices to cover costs after recently raising the wages of its employees, reported CNBC.

In May, the chain announced that it plans to hire 20,000 more employees and raise the hourly wage to $15 by the end of June.

The popular burrito chain is one of many fast-food chains struggling to re-open inside dining as pandemic safety restrictions begin to ease and the nation faces a labor shortage.

The restaurant hopes that the higher wages will help attract more workers during the labor crunch.

To cover the additional cost of increasing the hourly wage, the company plans to hike the price of menu items, including burritos, tacos, salads, and bowls, by 4%.

“It feels like the right thing, at the right time, and it feels like the industry is now going to have to either do something similar or play some kind of catch-up,” CFO Jack Hartung said at the Baird Global Consumer, Technology & Services virtual conference. “Otherwise you’ll just lose the staffing gain.”

Chipotle is one of several fast-food companies, including Taco Bell and McDonald’s, adding benefits or running hiring events to lure in applicants.

Earlier this year, Subway said in a statement that it was looking to hire 40,000 new employees in the United States.

In May, an eagle-eyed Twitter user posted a pic of an unspecified McDonald’s with a sign in the window offering a free iPhone to new employees after six months of work.

Another McDonald’s location in Tampa, Florida was offering $50 to applicants who showed up for their interview.

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