The next time you want a burrito bowl from Chipotle, it may cost more than you think. And not because of inflation.
CEO Scott Boatwright wants to entice the majority of customers who frequent the restaurants—those who make over $100,000 a year—by shifting Chipotle’s menu prices to fit these high earners’ lifestyles.
“What we’ve learned is the guest skews younger, a little higher income, is typically a digital native, and that their grounded purpose aligns with our North Star as a brand, around clean food, clean ingredients, high protein,” CEO Scott Boatwright said, as reported by Business Insider.
“We are the way they want to eat, and we’re going to lean into that in the most meaningful way.”
The Neighborhood Talk shared audio of the Chipotle CEO confirming this shift in strategy.
“We learned that 60% of our core users are over $100,000 a year in average household income,” he added. “That gives us confidence that we can lean into that group in a more meaningful way, whether it’s the solo occasion and/or group occasions to really drive meaningful transaction performance in the year.”
The restaurant will lean into cleaner, premium ingredients, since the majority of their customers can likely afford them. The restaurant’s Chief Financial Officer Adam Rymer detailed plans to raise the cost of the beloved burritos, tacos, and salads by about 1 to 2 percent.
As Chipotle transitions to serving well-off customers, the price hikes push away those seeking healthy, budget-friendly options. Critics of this new strategy expressed doubt that it will pay off in the long run.
One commenter questioned, “And that’ll be the last time I walk in that place. How much more do you want a rice bowl to be?”
“Welp, y’all just gonna lean right out the door then because it’s already a bit pricey for the quantity given…” wrote a naysayer.
Another added, “I almost called him something…You go up on prices if the cost of doing business calls for it, not because you’re a pocket watching hater! “
Despite the comments, Chipotle doesn’t expect a dip in traffic due to its higher prices, especially since it didn’t see a drop in more expensive orders when it rolled out other premium menu options.
However, many feel fed up with Chipotle’s stance and the reasoning behind raising their prices just to fit a certain demographic.
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