Chipotle has increased its menu prices recently. The popular Mexican dining chain has adjusted its pricing to help cover the costs of raising its workers’ wages and to balance rising ingredient costs resulting from global food shortages and supply chain delays.
In response to the challenges faced during the pandemic, Chipotle had previously announced that all hourly employees would earn a minimum of $15 per hour by a specific date. Many companies in the food and retail industries have been raising wages in an effort to attract new employees after experiencing significant workforce reductions. The increased risks faced by frontline workers during the pandemic prompted many individuals to seek better pay and employment conditions.
Chipotle Mexican Grill has raised menu prices by approximately 4% to support the increase in workers’ wages. https://t.co/ba3L5Wkm8e
— NBC News (@NBCNews) June 9, 2021
Chipotle’s CFO, Jack Hartung, acknowledged that while raising menu prices was not the preferred choice, it was necessary to maintain financial stability while ensuring fair compensation for employees. Hartung emphasized the industry’s need to adapt to these changes to prevent a loss of skilled workers.
The leisure and hospitality sectors have experienced a significant decline in employment compared to previous years, with statistics from the Department of Labor indicating a decrease of 2.5 million jobs. To revitalize their workforce, fast-food chains may need to make further adjustments to attract and retain employees.
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