With the recent increase in cost of the fast food chain’s ingredients, Chipotle has had to raise the cost of their meals. Chipotle is relying on their great customer loyalty to not receive backlash for raising the prices of their food.
The need for an increase in prices has not come from the increase of the actual food they are selling, but the products that go into them. Chipotle prides themselves on using “high-quality raw ingredients, classic cooking methods and distinctive interior design—features that are more frequently found in the world of fine dining.”
The Mexican restaurant has been able to successfully do this because of the fact that they have a loyal following.
However, these superior-to-fast-food ingredients come at a high price. On average, a burrito at Chipotle can cost restaurant-goers almost $7.
According to Reuters, “Chipotle hadn’t raised menu prices for three years, but the higher cost of ingredients compelled it to roll out up to a 6.5 percent average increase in the second quarter.
Customers have noticed the change, but they have not stopped going to the restaurant, they have just been choosing different meals. What helps even more is that their customers on average earn more than frequent visitors at McDonald’s and are more willing to spend for quality meals, according to Reuters.
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