Chipotle has set the internet ablaze with its latest announcement. The Mexican fast-food chain announced on December 5, 2024, that it will be raising its prices by 2% across its 3,500 restaurants.
The company said that it was a necessary change to make due to the current economic situation, according to NBC News.
Chipotle’s chief corporate affairs officer, Laurie Schalow, stated that,
"For the first time in over a year, we have taken a modest price increase of approximately 2% nationally to offset inflation."
But, what is the reason behind the sudden change in prices? According to Schalow, the food, beverage, and packaging costs were calculated as 30.6% of its total revenue during the third quarter of 2024. This was relatively high compared to its 2023 revenue, which was 29.7% in a similar quarter.
The news has left Chipotle fans disappointed. Some believed that with the increase in prices, they have decreased their quality and portion sizes.
How have fans reacted to Chipotle’s sudden change in prices?
Fans have been complaining about Chipotle’s portion sizes and their prices. Some said that they have stopped ordering from Chipotle’s due to their reduced portion sizes. A handful of them also preferred other food chains over it like Quidoba and Cava.
“Chipotle raising their prices again. Man end of an era for me.” One fan commented.
“I will be taking my business to @qdoba” A user replied.
"That’s like a couple pennies lol." A user wrote.
"I stop eating at chipotle years ago when I noticed smaller portions." Another user tweeted.
"I remember when chipotle first opened and the bowls were 6.95 😭 and I couldn't believe how big and stuffed my bowl was for that price. Sighhhhhhh." Another user grieved about the sudden inflation.
"Just paid $19 for a basic burrito bowl that used to cost $8 three years ago while their CEO pocketed $17 million in compensation last year - this isn't inflation, it's corporate greed." Commented a user blaming it on the CEO of the company.
“They only reason they losing a lot of business is because of the prices. This ain’t gonna save them.” a user wrote.
Chipotle’s former CEO, Brian Niccol, who moved on to lead Starbucks explained in July, that the company never put out a directive to reduce the portion sizes.
"We have focused in on those outlier portion scores based on consumer surveys." He told NBC news. "We are re-emphasizing training and coaching round ensuring we are consistently making bowls and burritos correct. We have also leaned in and re-emphasized generous portions across all of our restaurants."
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In October, Reuters published a report mentioning that Chipotle has failed to meet the market expectations “for third-quarter same-store sales growth” as the high menu prices have affected the demand.
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