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Chipotle, the popular Mexican fast food chain, announced a 2% price increase on its menu. Laurie Schalow, the company’s Chief Corporate Affairs Officer, explained in a statement that, for the first time in over a year, they were forced to make this decision.
According to Schalow, during the third quarter of 2024, food, beverage, and packaging costs accounted for 30.6% of Chipotle’s total revenue during that period, an increase compared to 29.7% in the same quarter the previous year.
Why did Chipotle raise its prices?
The company explained that the price increase is due to inflation on several ingredients, mainly avocados and dairy, as well as a higher usage of supplies due to its focus on offering “consistent and generous portions”. Additionally, the change in protein mix, driven by the success of their limited-time offer of smoked chicken, also contributed to the adjustment.
This decision comes after Chipotle failed to meet market expectations regarding same-store sales growth, according to a earnings report released in October, as reported by Reuters. The company is also in the early months following the departure of Brian Niccol, its former CEO, who moved on to lead Starbucks.
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Who owns the Chipotle restaurant chain?
Chipotle was founded by Steve Ells, who has successfully capitalized on the growing popularity of burritos and other Mexican dishes since he opened his first restaurant in the 1990s.
Although Chipotle does not enjoy the same level of global recognition as its former parent company, McDonald’s, the chain has impressively established itself as a key player in the fast food industry.
How many Chipotle restaurants are there in the United States?
As of August 19, 2024, Chipotle has 3,494 restaurants in the United States. California leads as the state with the most locations, with a total of 486 establishments, accounting for about 14% of all Chipotle restaurants in the country.
Why is Chipotle famous?
Chipotle’s founder, Steve Ells, committed to offering food made ethically and naturally. According to the company, this approach results in superior-tasting meat compared to what other establishments offer.
One of the key factors behind Chipotle’s success is its simplified menu. This reduced menu offers three fundamental advantages. First, since Chipotle only uses fresh ingredients, there is always the risk that products may spoil. A more limited menu reduces the number of ingredients needed in stock, which in turn minimizes food waste.
Second, using a restricted menu allows for faster service. In many fast food restaurants, high demand can overwhelm the kitchen, leading to order errors. In Chipotle, these mistakes are virtually nonexistent: the customer orders a soft taco, chooses their fillings, and makes the payment. If the employee forgets an ingredient, the consumer is attentive and can point out the omission. This process is quick and efficient, making it attractive to customers.
Finally, a limited menu means customers know exactly what options are available every time they visit. Chipotle doesn’t need to invest in developing new products or in flashy advertising campaigns to inform its customers about its offerings. Additionally, consumers are not disappointed when a product disappears after a trial period or promotion.
Chipotle introduces Christmas gift line
Chipotle has announced the return of three of its most iconic and successful products, considered “perfect gifts” for brand enthusiasts looking for options for their holiday shopping.
The available products are:
- Cilantro Soap ($10): First introduced in 2021, this soap is a nod to a “small percentage of the population” who, due to their genetics, experience a soapy taste when consuming cilantro.
- “Water” Cup Shaped Candle ($28): This candle emits a lemonade scent and is inspired by followers who occasionally “accidentally” fill their water cups with lemonade at the restaurant.
- Car Napkin Holder ($20): Created during the previous holiday season, this item caters to “fans who tend to accumulate Chipotle napkins in their cars” and to the “numerous mukbangers who claim that their car is the perfect space to enjoy a burrito.”
Additionally, enthusiasts can purchase all three items at a reduced price through the “All I Want Is Chipotle” bundle for $50.
All of these items will be available for individual and bundled purchase through ChipotleGoods.com until stocks run out.
