This post has been updated since its initial 09/26/22 publish date to include more information regarding Chipotle price increases and Twitter user reactions.
According to its latest earnings call, Chipotle said that it expects its menu prices to increase by 4% and by the end of 2022, your favorite burrito bowl will be approximately 20% more expensive than it was in 2020, as reported by Restaurant Dive. The Tex-Mex chain’s revenue grew 17% in the most recent quarter thanks to dine-in sales, Eat This, Not That reports, which increased by almost 40% as dine-in customers returned to the restaurants in the most recent ‘post-pandemic’ era.
As for why the fast food joint is increasing their prices on menu items, CFO Jack Hartung said in a July 27 earnings call that this is due to the cost of Chipotle’s ingredients going up (including avocados, dairy, beef, chicken and the company’s packaging) and inflationary pressures related to them. Naturally, Twitter users were not delighted to hear the news, and headed to the app in recent weeks to air their grievances:
Your food does not justify the price increase @ChipotleTweets
— Billy (@billy_dono13) September 25, 2022
Chipotle gotta chill with the price increase
— Jose (@morales12317) August 12, 2022
Chipotle! What are you thinking with your price increases? chicken was $8.95 the start of 2022 and was increade to $9.10 then $9.15 then $9.35 and in the last five days, you increase your prices Again by 30 cents to $9.65. You are pricing me out of a being a loyal customer.
— Guy Johnson (@Mtgdp2021) September 8, 2022
I know I’m getting old because I’m over here trippin on the $2 price increase at chipotle. I just spent $15.00 on a chicken bowl with chips and a drink ( per usual ).like is there anyone who WONT switch up in this world
— zaycupcakes (@zaycupcakes) September 13, 2022
The price increase of standard chicken bowls far outpaces the national inflation rate so I’m owed some damn napkins tbh
— Sam Pallas (@Sam_Pallas) September 23, 2022
In 2021, Chipotle implemented an 8.1% price increase and at the beginning of 2022, they also attributed a 10.5% increase to offsetting wage pressures and growing food costs. While fans may not be happy with the increasing prices, Chipotle still remains one of the cheaper chains to buy a burrito, Eat This, Not That reports. According to the outlet, when compared to its rivals, Qdoba, Moe’s Southwest Grill, and Baja Fresh, Chipotle is still the cheapest option, “about 10% cheaper than Qdoba and Moe’s and 5% cheaper than Baja Fresh.”
On the call two months ago, Chipotle CEO Brian Niccol said that he believes the brand will maintain an edge over its competitors, even despite the price hikes. “I really believe the value proposition that we sell today is our strongest proposition. We looked really hard at this. When you look at a chicken burrito, steak burrito and you compare that to your alternatives, the value is there,” he said on the call.
