Chipotle fans could be in for a shock when the chain's new CFO considers raising prices on three popular menu items.
The Mexican barbecue restaurant with about 3,500 locations could soon raise prices for burritos and rice bowls as the company battles rising costs.
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There have already been six price increases between 2021 and 2024, with some customers already launching boycott campaigns claiming the chain is no longer affordable.
The latest discussion about raising prices comes as raw ingredients like avocado, queso and sour cream have become more expensive for Chipotle.
This increase can be offset by price changes on menus, which means it will directly impact customers.
But, to keep fans loyal, the chain is said to be hoping to give them various offers and discounts.
Regardless of any increase in costs, CFO Adam Reimer told the Wall Street Journal that customers are still getting better overall value compared to competing chains.
Reimer, who took over as CFO in October, said any price increases that occur will be “modest” as he hopes to keep menu items affordable for customers.
It is not known when this supposed rise in prices will occur.
Reimer has been with the Mexican restaurant chain for 15 years, previously holding roles including vice president of finance and compensation analyst.
His predecessor, former CFO Brian Nicol, left the chain in August to become the new CEO of Starbucks, which saw Rymer's start date moved from January to October.
At a time when other fast food chains have been hit hard by inflation, losing customs and staff, Chipotle has been able to push through the pressures facing the industry.
In the company's latest quarterly results, same-store sales increased 6 percent compared to the same period last year.
Revenue also grew by 13 percent to reach $2.8 billion year over year.
Despite this success, and in the wake of the latest news about potential increases, angry customers took to Facebook to share their thoughts.
Many stressed that previous cost hikes had pushed them away from the chain.
“It's already expensive enough. I haven't had Chipotle in months,” one wrote.
“I stopped eating there several months ago – meager portions for the high price we were paying – and we never added meat = vegetarian!” Another added.
A third noted: “Good. I need to start eating healthier and more at home.”
Others warned customers to “be prepared to pay more for everything” and that Chipotle should prepare to “lose customers.”
One even accused the chain of “greed.”
But a senior Baird analyst claims the chain's price hikes haven't had a significant impact on its customer base so far and that another hike is “likely digestible,” according to the Wall Street Journal.
David Tarantino said one reason for this is that Chiptole's customers are typically wealthier than customers of other fast food chains and that its products generally offer better value.
He said: “[Chipotle’s] Price increases lag behind what we see elsewhere, and this leads to a much stronger value proposition.”
It comes just months after the chain's CEO was forced to issue a change after diners threatened to boycott.
The US Sun has reached out to Chipotle for comment on the menu price increase.
