Chipotle is reportedly considering raising prices to cope with rising costs for ingredients such as avocados, queso and sour cream.
said Adam Reimer, the Newport Beach, Calif.-based company's new financial director. told the Wall Street Journal He believes customers will continue to flock to Chipotle despite the “modest” price increases. Because this chain is a better value option than its competitors.
Reimer told the magazine that Chipotle has not yet determined when the price increases will go into effect or how large they will be.
Chipotle did not respond to requests for comment.
While fast-food giants like McDonald's, which saw its sales decline in July for the first time since 2020, are struggling as customers move away from high prices, Chipotle continues to shine.
Same-store sales for the three months ended September 30 were up 6% from the same period last year. Sales increased 13% from the previous year to $2.8 billion.
Reimer, who said he is focused on keeping Chipotle focused on values, is moving ahead of schedule after Chipotle's then-CEO Brian Nicol abruptly resigned to lead Starbucks. He was appointed chief financial officer in October, three months early. Mr. Reimer has served in various roles at Chipotle for the past 15 years, including vice president of finance.
The potential price increase is not the first to impact Chipotle's menu. The Mexican restaurant chain's prices have soared sixfold since 2021, and the company's California sales in April came after Gov. Gavin Newsom raised the minimum wage for fast food workers to $20 an hour. It was carried out through restaurants.
But Chipotle's price changes have lagged behind competitors' price hikes, keeping its restaurants relatively affordable options.
Going forward, Reimer hopes to increase traffic and sales by reducing the wait time for customers to receive their orders.
To that end, Chipotle is taking a technological path. Robotic systems like Autocado are used to quickly cut, core, and peel avocados.
Reimer said the company plans to install produce slicers in all stores by next summer, reducing the time it takes to dice peppers and onions.
