Fast food chain shocks with price hike—here’s why customers are fuming!
By
Aubrey Razon
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Fast food is shifting, and it’s not just about the menu. A major chain’s new price hike has customers fuming.
What’s behind the increase, and how will it affect your wallet?
In a move that has left many customers with a bad taste in their mouths, Chipotle, the beloved Mexican fast casual chain, has announced a price hike across its restaurants nationwide.
Chipotle's decision to raise prices comes on the heels of its third-quarter earnings call in October, where the company revealed that food, drink, and packaging costs had climbed to 30.6 percent of total revenue, a significant jump from 29.7 percent the previous year.
“For the first time in over a year, we have taken a modest price increase of approximately 2% nationally to offset inflation” Chief Corporate Affairs Officer Laurie Schalow explained in a statement.
This inflation has been attributed to the increased costs of several key ingredients, as well as the company's commitment to providing customers with larger portions.
The move has sparked a wave of discontent among Chipotle enthusiasts.
Social media and online forums have become hotbeds for customer dissatisfaction, with many expressing their disillusionment with the brand.
Comments range from vows to abandon Chipotle altogether to criticisms of the perceived decline in value for money, especially when compared to dining at home or choosing alternative eateries.
“I gave up on this brand a long time ago. Not worth the price anymore,” said one commenter.
“The idea of spending even more money than now for bare bones chicken with water just feels gluttonous and wasteful compared to going somewhere else or just eating at home,” another commenter added.
In an effort to address customer complaints about shrinking serving sizes, Chipotle had previously embarked on a mission to retrain its workforce at ten percent of its locations.
Former CEO Brian Niccol emphasized the importance of ensuring that customers received the correct portion sizes, a factor that has now become part of the pricing equation.
Chipotle is not alone in this trend.
Other giants in the industry, such as McDonald's, Wendy's, and Burger King, have also raised their prices this year, leading to widespread customer frustration.
A Lending Tree survey revealed that an astonishing four in five Americans now consider fast food a 'luxury' item due to its escalating costs.
The price of a typical combo meal at the five biggest burger chains has skyrocketed by as much as 120 percent over the past decade.
Five Guys, known for its premium positioning, has seen its combo meal price jump by more than $7 to $20.32.
Even McDonald’s, often seen as the most affordable option, has not been immune to price increases.
A Big Mac meal that once was a symbol of accessible dining now costs $15 in some areas, representing a 65 percent increase.
The cost of dining out has surged by 30 percent between October 2019 and October 2024, according to government data.
This is compared to a 27 percent rise in the price of grocery store-bought food within the same period.
The gap between the cost of eating out and cooking at home is widening, prompting consumers to reconsider their dining habits.
Have you noticed the price increases at your favorite fast food chains? How has this affected your dining choices? Are there any tips you have for enjoying these treats while managing a budget? Share your insights and tips with us in the comments below.
What’s behind the increase, and how will it affect your wallet?
In a move that has left many customers with a bad taste in their mouths, Chipotle, the beloved Mexican fast casual chain, has announced a price hike across its restaurants nationwide.
Chipotle's decision to raise prices comes on the heels of its third-quarter earnings call in October, where the company revealed that food, drink, and packaging costs had climbed to 30.6 percent of total revenue, a significant jump from 29.7 percent the previous year.
“For the first time in over a year, we have taken a modest price increase of approximately 2% nationally to offset inflation” Chief Corporate Affairs Officer Laurie Schalow explained in a statement.
This inflation has been attributed to the increased costs of several key ingredients, as well as the company's commitment to providing customers with larger portions.
The move has sparked a wave of discontent among Chipotle enthusiasts.
Social media and online forums have become hotbeds for customer dissatisfaction, with many expressing their disillusionment with the brand.
Comments range from vows to abandon Chipotle altogether to criticisms of the perceived decline in value for money, especially when compared to dining at home or choosing alternative eateries.
“I gave up on this brand a long time ago. Not worth the price anymore,” said one commenter.
“The idea of spending even more money than now for bare bones chicken with water just feels gluttonous and wasteful compared to going somewhere else or just eating at home,” another commenter added.
In an effort to address customer complaints about shrinking serving sizes, Chipotle had previously embarked on a mission to retrain its workforce at ten percent of its locations.
Former CEO Brian Niccol emphasized the importance of ensuring that customers received the correct portion sizes, a factor that has now become part of the pricing equation.
Chipotle is not alone in this trend.
Other giants in the industry, such as McDonald's, Wendy's, and Burger King, have also raised their prices this year, leading to widespread customer frustration.
A Lending Tree survey revealed that an astonishing four in five Americans now consider fast food a 'luxury' item due to its escalating costs.
The price of a typical combo meal at the five biggest burger chains has skyrocketed by as much as 120 percent over the past decade.
At Carl’s Jr, for example, a Famous Star combo that cost $5.29 in 2014 now rings up at $11.68.
Five Guys, known for its premium positioning, has seen its combo meal price jump by more than $7 to $20.32.
Even McDonald’s, often seen as the most affordable option, has not been immune to price increases.
A Big Mac meal that once was a symbol of accessible dining now costs $15 in some areas, representing a 65 percent increase.
The cost of dining out has surged by 30 percent between October 2019 and October 2024, according to government data.
This is compared to a 27 percent rise in the price of grocery store-bought food within the same period.
The gap between the cost of eating out and cooking at home is widening, prompting consumers to reconsider their dining habits.
Key Takeaways
- Fast food chain Chipotle announced a 2 percent price hike in response to inflation and rising ingredient costs.
- The company acknowledged increased costs of ingredients such as avocados and dairy, and the need to retrain staff for portion control.
- Disappointed customers have voiced their frustration on social media and forums about the increasing prices.
- The price increase at Chipotle follows similar moves by other fast-food chains, with many Americans now seeing fast food as a “luxury” due to rising costs.