The days of ordering a chicken burrito at Chipotle for under $7.00 may be a thing of the past.
Chipotle announced on Thursday that prices for all of its menu items will be increasing for the first time in three years. The price increases, which are expected to be in the mid-single digit percentage range, will be rolled out over the next three to six months.
The price increase stems from beef prices reaching an all-time high and they are expected to stay there. The prices of other Chipotle staple food items such as cheese and avocados are also increasing.
However, Chipotle still reported an 8.5% increase in first-quarter net income and are confident that customers will still flock to their restaurant.
“It has been nearly three years since our last company-wide price increase, and while we want to remain accessible to our customers, we are at a point where we need to pass along these rapidly rising food costs,” Chief Financial Officer Jack Hartung said on a conference call.
Chipotle plans on opening 180 to 195 new restaurants in 2014, more than ever before.
