Chipotle’s CEO: Supply chain challenges are easing, but inflation is not
Brian Niccol said the fast-casual burrito chain is feeling the impact of rising prices.
By Heather Lalley, Restaurant Business
Jul. 13, 2021
Pandemic-fueled supply chain challenges at Chipotle Mexican Grill appear to be easing, the chain’s CEO said during a televised interview Tuesday.
But Brian Niccol noted that the fast casual is feeling the impact of inflation.
“We’re definitely seeing some cost pressure,” Niccol told CNBC. “Whether that is permanent is to be determined.”
Early last month, Chipotle revealed it had raised its menu prices by about 4%, blaming the increase on higher labor costs in a tight hiring market.
Overall inflation accelerated in June, with the consumer price index increasing 5.4% from the year before—the biggest jump since 2008. Prices for food away from home rose 4.2% year-over-year last month, according to Labor Department data. That’s a post-pandemic high. And grocery prices were also on the rise, with inflation accelerating to 0.9%.
“We’re optimistic pricing will settle down and we can get going with business as usual on our key ingredients,” Niccol said...
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