Chipotle is raising its U.S. prices to offset inflation and pledge to increase portion sizes.
Chipotle’s Chief Corporate Affairs Officer, Laurie Schalow, confirmed Friday that the Mexican restaurant chain is implementing a 2% price increase nationwide. Schalow said it is the first time in more than a year that the California-based company has increased its prices.
Chipotle announced the price increase after an analyst report published earlier this week by investment bank Truist Securities found a 2% price increase at about 20% of the chain’s 3,500 U.S. stores.
Truist, which raised its price target on Chipotle shares, also reported that customer traffic at the chain’s restaurants accelerated in November.
Chipotle said in October that food, beverage and packaging costs all increased in the third quarter. It quoted avocados as an example.
There were avocado shipments from Mexico to the US briefly suspended in June after two U.S. Department of Agriculture employees were attacked and temporarily detained by assailants in the Mexican state of Michoacan.
Chipotle also cited the costs of ensuring it would provide “consistent and generous portions” to its customers. Former chairman and CEO Brian Niccol said that in July Chipotle was retraining employees at about 10% of Chipotle’s stores after customers complained on social media about receiving smaller portions.
Niccol left Chipotle in September to become chairman and CEO of Starbucksthat has said it will not raise prices until September 2025.
Restaurant price inflation has aggravated American consumers. According to government figures, the price of food eaten away from home has risen by 30% between October 2019 and October 2024. The price of food eaten at home increased by 27% in the same period.
Earlier this year, McDonald’s said it saw more customers eating at home instead of getting fast food due to price increases. The company responded with one $5 meal deal and other discounts.