Chipotle increases prices due to rising wage costs

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Chipotle increases prices due to rising wage costs

Customers order from a Chipotle restaurant as holiday shopping accelerates at King of Prussia Mall in King of Prussia, Pennsylvania, U.S. November 22, 2019 REUTERS Mark Makela Mark Makela

On Tuesday, Chipotle Mexican Grill Inc said it had increased prices for products across its menu by about 4% owing to rising labor costs.

Several companies in the retail space, including McDonald's and Walmart, have increased hourly wages for employees in recent months in an effort to keep or hire more workers to keep up with a higher economic recovery amid a larger economic recovery.

We really prefer not to take pricing. It made sense in this scenario to invest and get the restaurants staffed and ensure that we have the pipeline of people needed for our growth, CEO Brian R. Niccol said at the Baird Global Consumer-Tech Services Conference.

And then with that, we have incurred some prices to cover that, Niccol added.

The burrito chain said in May that it plans to hire 20,000 more workers and to raise the average hourly wage to $15 by the end of June.

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