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Price hikes on the menu at Chipotle


The CEO of Chipotle Mexican Grill said he expects his restaurant chain to raise menu prices in mid-2014 to due to higher food costs, according to this story from the Nation’s Restaurant News web site.

There are about two dozen Chipotle restaurants in the Dayton, Springfield, Hamilton and Middletown areas, and the burrito-Mexican chain competes directly with Kettering based Hot Head Burritos, among other casual Mexican chains.

According to the NRN.com story, officials with the Denver-based Chipotle said after reporting strong third-quarter financial results that the higher price of ingredients such as avocados, tomatoes, corn, dairy and chicken has cut into profit margins, and the chain’s commitment to shift to ingredients that have not been genetically modified has also raised costs.

As a result, Chipotle officials said menu prices will likely rise between 3 percent and 5 percent around mid-year in 2014, with the price hikes varying by location — although all markets are expected to see some price increase.

In the third quarter, Chipotle’s same-store sales jumped 6.2 percent, courtesy of higher customer traffic that accelerated at the end of July and continued into October.


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