You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

Chipotle to hike prices


Chipotle’s coming price hikes could hit steak lovers particularly hard.

The Mexican food chain said earlier this month that it plans to start charging more for its burritos, bowls and tacos in coming weeks as it faces rising costs for ingredients. On Tuesday, Chief Financial Officer Jack Hartung noted that the chain doesn’t currently charge a whole lot more for its steak filling, even though beef costs have climbed considerably.

“There’s a very narrow gap between our steak burrito and our chicken burrito. We’re going to widen that,” Hartung said at the Barclays Retail and Consumer Discretionary Conference in New York City. “We’re going to allow our customers to choose whether they want to pay the higher price of steak.”

Hartung also said the price hike would be more like 4 percent to 6 percent, or 32 cents to 48 cents, assuming the cost of a burrito is $8. In the past, executives had said they were considering a hike of 3 percent to 5 percent, or 24 cents to 40 cents. Chipotle says it will be the first national price hike in three years.

He did not specify how much more prices would rise for steak than for chicken.

Fast-food and restaurant chains are facing rising costs for beef, given the reductions in U.S. cattle inventory in recent years. In April, Hartung said Chipotle’s beef prices were up 25 percent compared with the prices it was paying in the fourth quarter of last year.

Chipotle, which has more than 1,600 locations, isn’t the only one encouraging customers to switch to chicken as the cost of beef climbs. Burger King’s head of North American operations, Alex Macedo, has also noted that the chain has been able to maintain its profitability in part by marketing chicken items more aggressively.


Reader Comments ...


Next Up in Business

RETAIL APOCALYPSE: More than 8,600 stores could close in 2017
RETAIL APOCALYPSE: More than 8,600 stores could close in 2017

More than 8,600 stores could close in 2017, a record estimate of closures compared to recent years. A new research report from brokerage firm Credit Suisse estimated that more than 8,600 stores will close this year, up from the 2,065 that closed last year and the 5,077 store closures in 2015. Major retailers across the country have taken a hit...
WATCH: Amazon’s new shopping concept means never waiting in lines
WATCH: Amazon’s new shopping concept means never waiting in lines

Amazon is launching a new kind of brick-and-mortar store that means never having to wait in a line again. The new concept Amazon Go will give consumers “the world’s most advanced shopping technology so you never have to wait in line,” according to the online retail giant. Some industry experts are calling the concept the future of...
No more cookies: Kroger’s offering free piece of fruit for kids
No more cookies: Kroger’s offering free piece of fruit for kids

Kroger is promoting healthy living through a new initiative that gives kids free fruit to munch on while their parents do the grocery shopping. The Cincinnati-based grocery retailer piloted its “Free Fruit for Kids” program in several stores starting last year. Parents can grab a piece of fruit for their children to eat from the produce...
INSIDE LOOK: Nearly $1M home for sale near Piqua
INSIDE LOOK: Nearly $1M home for sale near Piqua

A custom-built home on U.S. 36 near Piqua is for sale for more nearly $1 million. The custom two-story home is located at 1538 E. U.S. 36 outside Piqua in Miami County and is listed for sale by Coldwell Banker at $949,900. The house has 8,500 square feet of living space, with five bedrooms, five full baths, 3 half baths, 3 fireplaces, study, media...
Nordstrom selling work jeans covered in fake mud for $425
Nordstrom selling work jeans covered in fake mud for $425

  After it was ridiculed for selling designer rocks at Christmas, Nordstrom may have topped itself with its latest offer. The department store is offering a pair of jean covered in fake mud for a whopping $425. The retailer described its new Barracuda Straight Leg Jeans on its website as "rugged Americana workwear that's seen some...
More Stories