According to the fast-food chain Chipotle, the cost of your favorite burrito or taco will likely increase shortly.
According to reports, for the fourth time in less than two years, the restaurant has confirmed to Insider that it would be increasing prices across the board. According to the chain, the state of the economy is the reason for the decision.
A representative from Chipotle did not specify how much and when the prices would increase or what items on the menu would cost extra. According to Chipotle’s website, a burrito in New York is now over $11.
Inflation is on the rise again, coinciding with Chipotle’s upcoming price hikes.
According to the latest figures from the United States Bureau of Labor Statistics, consumer prices increased by 3.7% on an annual basis in August. Financial data provider FactSet reports that this tendency is expected to have persisted in September among economists.
Over the last several years, Chipotle has implemented a number of pricing increases. Some Chipotle customers saw an increase of more than $1 on some dishes in August 2022. That hike was the second one to happen that year.
Prior to that, in June 2021, the chain had increased its rates in response to a $15 per hour increase in employee compensation. Chipotle added another 4 percent to its pricing increases in the winter of 2021, making 2021’s menu items 10 percent more expensive than 2020’s.
Pricelisto, a service that tracks pricing, reports that in 2022, the average cost of a fast food meal increased by almost 13%, with increases at Chick-fil-A and Wendy’s being the greatest.
California Governor Gavin Newsom (D) approved a bill last month raising the fast restaurant minimum wage to $20 per hour in 2024. Despite claims that the bill benefits low-wage Californians, the truth is more convoluted.
States forcing big pay increases doesn’t mean the same number of workers would make more. Instead, rising minimum wages increase unemployment and costs.