Chipotle Raises US Prices by 2 Percent as Operating Costs Rise

A customer orders at a Chipotle restaurant in San Francisco on April 26, 2022. Justin Sullivan/Getty Images

Chipotle Mexican Grill has increased its U.S. prices by 2 percent nationally, citing inflation as well as increased operating costs after promising earlier this year to maintain portion sizes for customers.

“For the first time in over a year, we have taken a modest price increase of approximately 2 percent nationally to offset inflation,” Chief Corporate Affairs Officer Laurie Schalow said in a statement emailed to The Epoch Times on Dec. 6.

Chipotle said in third-quarter earnings results in October that part of the operating cost increase at the time was due to increases in food, beverage and packaging prices amid “higher usage of ingredients as [the company] focused on ensuring consistent and generous portions.”

The chain had previously faced criticism from customers on social media about portion sizes, prompting retraining efforts in certain stores to maintain the standards diners expect.

The California-based company’s decision followed an analyst report from Truist Securities that indicated roughly 20 percent of Chipotle’s 3,500 U.S. locations had implemented the new pricing.

Avocados have also been specifically cited as a contributor to higher expenses, and previous supply issues were highlighted earlier this year when avocado shipments from Mexico to the United States were briefly suspended.

Despite the price adjustment, some analysts have reported encouraging signs in customer traffic. Truist raised its price target on Chipotle’s shares after noting that the chain’s customer visits picked up in November.

Some chains have introduced deals or promotions in response to consumers becoming more cautious due to higher prices, such as McDonald’s saying last month that it would continue to offer a $5 Meal Deal introduced in June through next summer to draw back inflation-weary customers.

Larger macroeconomic shifts have more diners weighing whether to eat out or prepare meals at home.

Chipotle has also seen changes at the executive level this year. In November, Scott Boatwright became chief executive officer and a board member, following a period in which he served as chief operating officer after Chipotle’s CEO left for Starbucks in August.

According to the company’s press releases at the time, leadership will continue to focus on guest experience, operational improvements, and long-term growth strategies. The company will release its fourth-quarter and 2024 earnings results in February.

The Associated Press contributed to this report.