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Chipotle raises menu prices to offset rising employee wages

Image Source: Chipotle Mexican Grill

Chipotle Mexican Grill Inc (NYSE: CMG) has raised the price of its menu by about 4% to offset the recent rise in employee wages.

Brian NicoleOn Tuesday, the CEO of the fast casual burrito chain, the company does not want to raise prices, but said, “In this scenario, we invest in employees, staff these restaurants, and pipeline people. It makes sense to secure. ” To support our growth. “

Chief Financial Officer Jack Hartung called it “the right thing at the right time.”

At the Baird Global Consumer, Technology & Services Virtual Conference, Hartung said: Otherwise, the increase in staff will be lost

In May, Chipotle said it would raise the average Hourly wage For new and existing hourly wage employees, it will be $ 13 to $ 15 per hour by the end of June.

The company also said it is considering hiring 20,000 new employees in 200 locations nationwide before the busy summer season is expected due to deregulation during the pandemic era. ..

In the nationwide labor shortage of the food service and hospitality industry, some companies, including Target Corporation, have McDonald’s Co., Ltd., Starbucks Corporation and Costco Wholesale Corporation have deployed wage increases, bonuses and other enhanced benefits to attract new workers and retain current workers.

In the recruitment announcement, Chipotle $ 200 Employee Referral Bonus The employee could then be promoted to the position of general manager within three and a half years. This has an average annual salary of $ 100,000.

According to CNBC, Chipotle executives said they have no plans to raise prices further, despite rising raw material costs across the restaurant industry as the supply chain responds to the recovery in demand.

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Source: Stock news




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