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Fast Food News

Chipotle Announces Another Price Hike Will Be Coming In November

 

 

I don’t know if Chipotle thought it was going to be saved by its mediocre new queso dip, but shares have still fallen, while its food prices keep rising.

The Mexican-ish restaurant announced that in November, prices would rise about 5 percent in about 900 of its stores across the nation, according to Reuters.

This isn’t the first time Chipotle announced a major price hike this year, as back in April about 20 percent of its stores saw a 5 percent increase for the first time in three years.

The store had reportedly planned on opening between 195 to 210 stores in 2018, but that estimate has decreased to about 130 to 150, falling way below what they originally projected. CEO Steve Ells said they’re slowing things down, but only momentarily, as Chipotle is still trying to get back to the basics that made them so popular.

Chipotle has really hit a string of bad luck from their E. Coli outbreaks to lawsuits, now they have to deal with dipping shares and price raises. We’ll just have to sit back to see how it all works out.

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Fast Food

Chipotle’s Raising Prices For The First Time Since E. Coli Outbreak

Chipotle has been walking on egg shells after an infamous E. Coli outbreak caused them to take big hits to their image, stock, and overall reputation. Since then, the price of beef went up and other restaurants slightly raised menu prices. Chipotle, however, stayed put — until now.

About 20 percent of Chipotle restaurants around the country raised their menu prices on April 11, according to Bloomberg. Their reasoning for the increase was to “offset labor inflation.”

This is the restaurant’s first price increase in three years, and is said to be about a 5 percent increase, but the fast casual restaurant reportedly doesn’t plan to implement the hike at all of its 2,200 stores.

While periodically raising prices isn’t out of the ordinary for a restaurant, it almost feel disingenuous for Chipotle to do so especially after the disastrous 2015 and 2016 they had.

Their overall sales have still been dropping, with a 4.8 percent decrease last quarter, but they’ve at least increased their shares by 1.7 percent, as recently as Monday. So as customers still aren’t all the way back, investors are starting to gain their trust a bit.

Overall, 5 percent doesn’t sound like that big of a price hike, but we’ll see how Chipotle fans respond, or if they’ll even notice.

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Hit-Or-Miss

Restaurants Now Charging Customers, Servers For Minimum Wage Increases

minimum-wage

In response to the recent minimum wage increase in Minnesota from $7.25 to $8, some restaurants have started tacking extra fees onto customer’s bills or taking them directly from servers’ tips to offset costs. The worst part? It’s all totally legal.

According to the Minneapolis Star Tribune, the .75 cent wage hike took effect at the beginning of the month, and is the first increase in the state in the past decade. To compensate, business owners like those at the Blue Plate Co. — which oversees eight restaurants in the area — have resorted to “creative” measures to keep costs down, such implementing a new credit card fee that will ultimately shave about 2 – 3% from servers’ tips each time a customer doesn’t pay with cash.

Another tactic used by the owner of the Oasis Cafe in Stillwater is a .35 cent “minimum wage” fee added on at the end of customer’s meals.

Locals, understandably, are pissed.

“Putting [minimum wage] fees on tickets and passing the cost on to consumers directly is strange at best, and creates an ‘us against them’ mentality while ordering dinner,” Wade Luneberg, secretary and treasurer of MN State Council of UNITE HERE Unions, told the Star Tribune.

“It’s just bad morale when [the owner] drives up in a Porsche, and yet he wants my 2 ­percent,” a Blue Plate Co. employee also said.

Unfortunately, the U.S. Dept. of Labor considers such loopholes perfectly legitimate, granted the deductions don’t result in workers making less than minimum wage. Which means, as long as we continue to live in this great, blue-blooded, capitalist-minded nation of ours, the future of higher minimum wages isn’t looking too bright. Go. Freaking. Figure.

H/T Jezebel

Categories
Hit-Or-Miss

Starbucks To Raise Prices Starting Tuesday

starbucks-half-off-deal

Start loading up your Starbucks cards because the coffee chain is increasing its prices starting Tuesday. The move comes the same week Starbucks announced their college tuition program, but before you get all whipped up, CEO Howard Schultz denies the two are related.

The price increase will affect coffee, lattes, and mocha drinks, your precious iced coffees, teas, and cafe foods are safe, for now. Coffee prices will increase 10-15 cents while mocha and latte drinkers will have to fork over 15-20 cents more, all increases only affect grande and venti sized beverages. Besides drinks, Starbucks will also increase the price of its bagged coffee by $1 starting July 24, regardless if you purchase your coffee beans at their locations or at your local grocer.

A drought in Brazil earlier this year is to blame for coffee prices increasing, though Starbucks is late to join the price hike party other chains, such as Dunkin’ Donuts, are still on the fence about raising their prices.

The price hike won’t make your already overpriced lattes significantly more expensive but it might just make you rethink your Starbucks addiction, but probably not.

H/T Gothamist