The Gist: Chipotle announced it has raised prices in select stores by 5%, and there’s been speculation as to whether this decision will help or hurt business. After researching, we found that 32% of Chipotle fans care most about quality of food when eating out, and only 12% care most about price. So, it seems that Chipotle fans might weather the price increase as long as food quality stays top of mind.
With the recent announcement that Chipotle has raised prices in 20% of stores, we were curious how this might affect business. This consideration is especially important considering that Chipotle sales fell 4.8% last quarter.
Though the price increases may only add an extra 25-35 cents for a typical entrée, it’s reasonable to speculate that even a small increase could deter current or potential customers. After all, a few cents here and there can add up fast. However, it looks like Chipotle will be in the clear.
Take a look:
As you can see, 32% of Chipotle fans consider food quality most important when dining out, and only 12% consider price most important.
Aside from the years-old E. coli outbreak, Chipotle has been known to advertise the quality of its food over the food of its competitors. If the Tex-Mex chain continues to prioritize food quality, it can expect fans to weather the relatively small price increase.