Current Events > Chipotle raising prices to cover $15 minimum wage

(+) Yeah! (+)

https://www.cnn.com/2021/06/08/business/chipotle-menu-prices/index.html

Chipotle raised its menu prices by about 3.5% to 4% to cover the cost of higher wages for employees, the company's Chief Financial Officer John Hartung said Tuesday.

"You take about a 4% price increase to cover the dollar cost of the extra labor," he told an analyst during a conference. Chipotle (CMG) announced in May that it would increase restaurant worker pay to an average of $15 per hour. The company said at the time that it was looking to hire 20,000 new employees ahead of the summer.

As restaurants prepare for a bustling summer, many are finding it difficult to staff up. And Chipotle's not the only chain trying to attract labor with higher wages. McDonald's (MCD) said last month that it would hike pay for workers at its company-owned stores, and in March Darden Restaurants (DRI), which owns Olive Garden, said it would raise wages.

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ofc. but nobody would believe this. not progressive's ofc.

now imagine landlords and once chiptole finds out what its producers like sysco are gonna cahrge, itll go up even more a bit

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I had already stopped going as it's about $20 to get chips, burrito, and drink

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They never dole over enough meat smh

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Uber/Lyft/Taxi rides are also up about 40% from pre-pandemic rates

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The raise I got to keep me from jumping to an easier job will more than make up for that price difference. Even if I got Chipotle every week (which is absurd).

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They raise their prices every year. Every restaurant here does.

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Am I supposed to care about 4%. Raise it more and pay your people more Chipotle

Prices have risen even before minimum wage was raised.

how easily we forget history

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Axiom posted...

Am I supposed to care about 4%. Raise it more and pay your people more Chipotle

Not everyone lives off Daddys money

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hot take: im okay with paying 50 cents more for a burrito to improve thousands of lives

double take: theyll raise prices regardless of if minimum wage is increased or not

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They could afford to raise wages without raising prices. Thing is, that's not profitable. They'd raise the price regardless, but doing it like this means they can get customers pissed at employees rather than corporate.

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Bananana posted...

hot take: im okay with paying 50 cents more for a burrito to improve thousands of lives

double take: theyll raise prices regardless of if minimum wage is increased or not

Yup. The right are suckers though and believe what some CFO is saying when said CFO is actually banking on their ignorance and just using it as an excuse to raise prices like they always do

Axiom posted...

Am I supposed to care about 4%. Raise it more and pay your people more Chipotle

I remember when papa johns said if they gave health insurance to employees, it would raise the price of a pizza 25 cents. General concensus was people were fine with this idea. So the company showed their true colors by saying fuck you anyway and not helping out their employees.

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If a slight rise in minimum wage means your business would fail, maybe you shouldn't be in business.

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https://twitter.com/kenklippenstein/status/1402673021387673603

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ryudo500 posted...

ofc. but nobody would believe this. not progressive's ofc.

now imagine landlords and once chiptole finds out what its producers like sysco are gonna cahrge, itll go up even more a bit

progressive here.

not only do i believe it, i welcome this with open arms. i'll gladly pay a paltry 4% increase on my food order if it means a livable wage for the employees.

think before you post.

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Makes sense

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Prices were going to go up anyway. Min at 15 or not.

This has nothing to do with minimum wage.

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A couple cents I gotta pay more so their workers can forestall homelessness? Fine by me.

So why did the last price hike happen?

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Simple. Eat elsewhere. Greedy dicks like this guy deserves no money.

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Seriously, im fine with the prices of things rising a little bit so people can live more comfortably.

Paying people dirt wages just so you can keep a dollar menu is shitty.


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Aint eating there anymore then. Their prices were already high enough.

Jabodie posted...

So why did the last price hike happen?

Increase in demand

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Haha oh no people will have to pay 4% more for their cheap ass fast food so that the people cooking it can be paid almost a living wage haha oh no the unbridled socialism haha

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Only a moron would think raising the minimum wage would be an issue and complain about a measly raise in prices (that a company like chipotle wouldn't even need to do but are so that their bottom line doesn't drop)

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Ok and? Is it 1:1? Should we pay everyone 2 dollars an hour to lower prices? Could we support the economy if we were all too poor to afford anything?

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It's funny how much the temporarily embarrassed millionaires cry about 50.
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People who cry about a 4% increase in prices can't afford chipotle anyways. Stick to taco bell.

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Minimum wage in Nebraska is $9.

Not sure what Chipotle started people at but Ill just assume $9.00 like most other restaurants.

$9 to $15 is a 66.7% raise

a 4% increase on menu items that would have happened anyway seems fair

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Eating at these restaurants is getting too expensive. Looks like I will be crossing another place off my list.

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Quicksilver posted...

Eating at these restaurants is getting too expensive. Looks like I will be crossing another place off my list.

Thats probably a good idea if paying an extra dollar or two for a burrito is breaking your bank

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Who could've seen this happening? Oh wait I did.

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IMNOTRAGED posted...

https://twitter.com/kenklippenstein/status/1402673021387673603

This is why raising the minimum wage alone isn't enough. Prices don't need to increase, we just need restrictions on executive pay and that money can go toward paying fair wages for employees.

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Well thats just crazy, all the financial experts here in CE said that would never happen! Even though it's happened literally every single time lmao

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SSJPurple posted...

Thats probably a good idea if paying an extra dollar or two for a burrito is breaking your bank

Thats whats funny, its not even remotely close to that much of an increase unless their burritos currently cost $25-50

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Wow 4% was all it took?

That's nothing lol, people acting smug like 4% is gonna break the bank

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why are you guys acting like a 4% increase is a big deal

oh no your 10 dollar burrito costs 10.40

however will you survive

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I am 100 percent fine with this. Hopefully it has the added effect of pulling people off of welfare and having us spend less money on welfare which will earn me some of this money back.

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MC_BatCommander posted...

Wow 4% was all it took?

That's nothing lol, people acting smug like 4% is gonna break the bank

Yeah like a burrito bowl with good shit on it is already $15 as is, what's another dollar extra. Scummy af that employees are "blamed" for the price hike tho.

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"Supply and demand!"

*employees demand more pay to supply work*

"Entitled assholes need to stop making demands!"

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4%? That's it? That's like 40 cents a meal extra.

I think this news has the opposite impact you wanted it to have.

Like, social equity costed less than sales tax this entire time...?

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I'm sure their plan was otherwise to freeze prices at 2020 levels forever.

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MC_BatCommander posted...

Wow 4% was all it took?

That's nothing lol, people acting smug like 4% is gonna break the bank

thats not smug thats called not being rich. Smug would be shaming those concerned about it, see your response.

E_S_M_Z posted...

4%? That's it? That's like 40 cents a meal extra.

I think this news has the opposite impact you wanted it to have.

Like, social equity costed less than sales tax this entire time...?

I'll give TC the benefit of the doubt since they didn't really add anything to the first post and it was just a copy/paste of the article. They could have been pointing out that 4 percent isn't a lot but we don't know.


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Antifar posted...

I'm sure their plan was otherwise to freeze prices at 2020 levels forever.

Exactly. We all know this is the first time prices have risen since the last federal minimum wage hike


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Bleuets posted...

thats not smug thats called not being rich. Smug would be shaming those concerned about it, see your response.

You hear that guys. 40 makes you rich.
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A 4% increase in prices to give the workers a 66% pay increase is fine with me. It's not like they don't increase their prices on a semi-regular basis any way.

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Companies raise their prices all the time, they just have an excuse to get the idiots mad at someone besides them this time though

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