Chipotle is considering raising prices as minimum wages rise, but the CEO says not to panic — they 'don't want to be like Whole Foods'

Business Insider | 1/15/2019 | Kate Taylor
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Chipotle is considering raising prices as minimum wages increase and the labor market tightens.

"We have a model that we can invest in our labor," CEO Brian Niccol told Business Insider. "And, we will use sales growth coupled with some pricing to handle it."

Niccol - Chipotle - Chain - Prices - Degree

Niccol said that Chipotle wants to remain accessible, and that the chain will be careful to avoid raising prices to a degree that could scare away customers.

ORLANDO, Florida — Your Chipotle burrito may get more expensive in 2019.

Chain - Consultant - Menu - Pricing - Item

The fast-casual chain hired an outside consultant to analyze the menu's pricing, item by item, executives said at the ICR Conference on Tuesday.

The analysis comes at a time when a number of chains are investigating ways to avoid having rising labor costs cut into profit margins.

Cost - Business - Challenge - CEO - Brian

"Every cost in the business is a challenge," CEO Brian Niccol told Business Insider. "The good news is we have a model that we can invest in our labor. And, we will use sales growth coupled with some pricing to handle it."

Chipotle executives have been hinting for months that changes in menu prices are in the works. The chain has held off on raising prices significantly in recent years. In January 2018, the chain finished implementing waves of price increases that began in April 2017.

"We're behind on...
(Excerpt) Read more at: Business Insider
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