Chipotle Getting Much More Expensive In August

According to the chain's most recent earnings call, it will stick to its higher price policy because customers keep coming back for more.

According to Restaurant Dive, your favourite burrito bowl will be 20% more costly by the end of 2022 than it was in 2020 if the fast-casual chain has its way. It expects menu prices to rise by 4% in August.

Dine-in sales, which surged by almost 40% as people returned to restaurants after the epidemic, helped the chain's revenue grow by 17% in the most recent quarter.

In order to counteract the rising cost of ingredients, this decision has been made. According to CFO Jack Hartung, on the company's earnings call on July 27, prices for everything from avocados to dairy to beef to poultry have gone up.

To counterbalance rising labour expenses and rising food prices, the chain raised prices by 10.5% at the start of this year, as well as by 8.1% in 2021.

The most costly location to get a burrito may be Chipotle, but that doesn't make it the most expensive in the world.

Qdoba, Moe's Southwest Grill, and Baja Fresh are all more expensive, but it's still the cheapest of the Tex-Mex chains, with a 10 percent price advantage over Qdoba and Moe's and a 5 percent price advantage over Baja Fresh.

Brian Niccol, the CEO of Chipotle, believes that despite the price increases, the brand would remain competitive.

"Our most compelling selling point, in my opinion, is the current value proposition that we offer. We examined this in great detail. When compared to other options, the value of a chicken or steak burrito is undeniable "He stated it over the phone, Niccol.

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