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Chipotle Increases Menu Rates | The Daily Wobble
Chipotle, in terms of their menu pricing, fits what I would describe as a “B-Tier” establishment. Unlike a C-Tier franchise like McDonald’s, where you can obtain around two meals for under ten dollars, at Chipotle, that same amount will only cover one full meal (though likely of superior quality). This tier might need some adjustment now, as the Mexican eatery has decided to raise their menu rates across the spectrum.
Previously in May, Chipotle declared that all their hourly staff would receive at least $15 per hour by the conclusion of June. Numerous eateries and stores have been boosting employee salaries to attract new hires; many of these establishments have witnessed significant reductions in their workforce during the pandemic, as the risks associated with frontline jobs have led many to reassess their job priorities and aim for better remuneration. To cope with these increased wages, along with the escalating ingredient costs due to global food scarcities and logistical delays, Chipotle decided to hike their menu prices to maintain equilibrium.
Chipotle Mexican Grill has elevated menu prices by approximately 4% to offset the expense of increasing its workers’ pay. https://t.co/ba3L5Wkm8e
— NBC News (@NBCNews) June 9, 2021
“It appears to be the appropriate decision at the opportune moment, and it looks like it will be necessary for the entire industry to follow suit or find a way to catch up,” mentioned Chipotle CFO Jack Hartung in a virtual conference. “Otherwise, they risk losing the staffing progress that has been made.”
Hartung further stated that Chipotle, naturally, did not intend to heighten their menu prices, but it was deemed the most viable solution to maintain financial stability while also ensuring elevated wages for employees.
Employment within the hospitality and leisure sectors has shown a decline of 2.5 million compared to this time last year, according to data from the Department of Labor. If fast-food establishments wish to regain their workforce, they may need to step up their efforts.
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