Chipotle whistleblower claims chain is about to send prices skyrocketing: 'Beware'
A Chipotle worker anonymously shared that the company's dreaded price increases are quickly approaching - and potentially more extreme than expected. The Mexican grill chain announced in February that they were raising prices by 1 to 2 percent this year when CEO Scott Boatwright said during the fourth-quarter earnings call that the company was focused on increasing revenue amid weak sales.Two months later, the anonymous employee said their general manager at an East Coast location showed them the updated menu board reflecting the changes. 'Beware,' they titled the post on Reddit. 'Chipotle is raising the prices by a $1. 'Don't know when this will take effect or if it'll only be in my area. But from a chicken bowl being $9.15, it'll be $10.15. Before taxes.'If the company followed the initial menu price change they proposed in February, the one to two percent increase for a chicken bowl would be between $9.24 to $9.33. Instead, the price is a 10.93 percent increase.Online users were shocked to hear the news, with one writing: 'When I first started eating Chipotle back in like 2016, it was $7.50 for a chicken bowl.'Another had strong words for Boatwright, writing: 'Haven't been back since the CEO said I could afford higher prices. F**k Chipotle.' A Chipotle worker anonymously shared that the company's dreaded price increases are quickly approaching- and potentially more expensive The Mexican grill chain announced in February that they were raising prices by one to two percent this year when CEO Scott Boatwright said during the fourth-quarter earnings call that the company was focused on increasing revenue amid weak sales Two months later, the anonymous employee said their general manager at an East Coast location showed them the updated menu board reflecting the changes, including more expensive chicken bowlsOthers in the comments reported high prices in their own areas, with some citing $11.50 in New York City, $10.35 in Northern California and others claiming as high as $14.50 in unspecified locations. Chipotle prices are more likely to be more expensive in major cities on the East and West Coasts, such as New York, Los Angeles, and San Francisco, than in a small city in Ohio or Oklahoma, according to the map on chipotlecost.com. If the company followed the initial menu price change they proposed in February, the one to two percent increase for a chicken bowl would be between $9.24 to $9.33. Instead, the price is a 10.93 percent increase.But the company has significantly raised prices from 2020 to 2026, often by 2 percent or more annually to offset rising labor and ingredient costs, pushing some popular burritos from around $8 to $9 in 2019 to over $10 to $12 by early 2026.The February announcement sparked backlash from customers, as a growing 'K-shaped economy' is pushing lower-income diners away from eating out. Chipotle CEO Scott Boatwright noted that internal data shows about 60 percent of core customers come from households earning over $100,000, giving the company more flexibility to raise prices and target solo and group dining occasions. Chipotle CEO Scott Boatwright noted that internal data shows about 60 percent of core customers come from households earning over $100,000After criticism came for Boatwright online, Chief Corporate Affairs Officer Laurie Schalow told the Daily Mail his comments were 'misinterpreted,' stressing that pricing was not directly tied to income levels. 'He stated on Chipotle's earnings call last week that 60 percent of its customers have an average household income over $100,000, so the company sees an opportunity to lean into these customers with new occasions like group or solo dining experiences,' Schalow said.'Since this consumer population is actively spending more at shops and restaurants today, Chipotle is giving them additional reasons to visit through new marketing and menu innovations, as well as enhancements to the digital experience for all guests,' she added. Others in the comments reported high prices in their own areas, with some citing $11.50 in New York City, $10.35 in Northern California and others claiming as high as $14.50 in unspecified locations Chipotle CEO Scott Boatwright noted that internal data shows about 60 percent of core customers come from households earning over $100,000Schalow emphasized that pricing was not directly tied to that consumer cohort and noted that Chipotle has taken a cautious approach.'Chipotle has only increased prices by approximately 0.7 percent this quarter, compared with an industry average of about 4 percent,' she said.During the February earnings call, Boatwright also attributed the rising prices to lower foot traffic and said the company was attempting to draw in customers with its new protein snack menu, promotions for chicken al pastor and red chimichurri sauce. Still, some customers have complained about rising prices and shrinking portions, including one college student on Reddit who said a $12.28 barbacoa burrito in La Jolla was 'barely the size of his palm.' Laurie Schalow, Chipotle's chief corporate affairs officer, said: 'Chipotle has taken a slow, measured approach, raising prices by about 0.7 percent in the first quarter - well below the industry average of 4 percent.'
