Chipotle raises wages to 15.00 an hour.

[hislegacy]

Chipotle hikes prices to cover the cost of raising wages

And the prices naturally follow.

Chipotle Mexican Grill has hiked menu prices by roughly 4% to cover the cost of raising its workers’ wages.
​

Anyone surprised?

 

[Fantine]

In a good way. More employers should follow their lead.

We don't have a local Chipotle but got takeout there while out of town. An entree, bowl. Burrito, or salad, was about $8.50.

I am willing to spend 32 cents to give their staff a better quality of life.

 

[anna ~ grace]

There are costs. To the workers. They don’t re-hire when a worker quits. They cut hours. It’s tough. I know higher wages sound great. But for the actual workers, it’s a mixed bag.

 

[Ceallaigh]

And that's why prices have doubled. I have nothing against the minimum wage being increased. But the fact is that large price increases follow large pay increases.

"$8 for a taco? I can't afford that!"
"Sure you can, you're making $15 an hour now, welcome to the big leagues".
"Do you know the average meal cost $12 these days?"
"Oh well, we'll just raise the minimum wage to $20 an hour, that will fix it!"
"One taco, that will be $14 please".

 

[Fantine]

Have you noticed how the cost of meat has increased?

Do you not think that having to boost sanitary procedures and packaging has increased the cost of restaurant/fast food meals?

Do you not know that droughts, floods, early freezes, and other climate-related problems result in higher prices for vegetables, fruits.

Fuel costs increase delivery costs? Higher fuel costs increase the cost of heating and cooling?

That their stock price was $405 5 years ago and is $1336 today? Hmm...capital gains of $931 per share for the rich, not a penny more in salary for the workers who make the profits possible?

The stock climbed $13 a share after the wage increase announcement (along with a positive profits outlook going forward.) Seems as if most Chipotle investors are willing to do the right thing. For those of you who oppose this wage increase, why aren't you?

 

[Ceallaigh]

Have you noticed how the cost of meat has increased?

Do you not think that having to boost sanitary procedures and packaging has increased the cost of restaurant/fast food meals?

Do you not know that droughts, floods, early freezes, and other climate-related problems result in higher prices for vegetables, fruits.

Fuel costs increase delivery costs? Higher fuel costs increase the cost of heating and cooling?

That their stock price was $405 5 years ago and is $1336 today? Hmm...capital gains of $931 per share for the rich, not a penny more in salary for the workers who make the profits possible?

The stock climbed $13 a share after the wage increase announcement (along with a positive profits outlook going forward.) Seems as if most Chipotle investors are willing to do the right thing. For those of you who oppose this wage increase, why aren't you?

It could be that prices surging after a big wage increase is a matter of correlation rather than causation.

I'm a security guard, and don't get paid much more than minimum wage, but I'm also one of the first ones to complain about large wage increases, because it seems like when they happen everything goes up, even rent. So they don't really seem to help me much if any. Now if prices across the board were going to take a big leap anyways, that's a different story.

 

[Yarddog]

Chipotle hikes prices to cover the cost of raising wages

And the prices naturally follow.

Chipotle Mexican Grill has hiked menu prices by roughly 4% to cover the cost of raising its workers’ wages.
​

Anyone surprised?

4%? Is that all? Great move Chipotle!!!

 

[RDKirk]

Chipotle hikes prices to cover the cost of raising wages

And the prices naturally follow.

Chipotle Mexican Grill has hiked menu prices by roughly 4% to cover the cost of raising its workers’ wages.
​

Anyone surprised?

Wait...you actually think a wimpy 4% price increase is a sufficient argument against a wage increase for workers who aren't making enough to live on?

Or is this a Poe?

 

[RDKirk]

And that's why prices have doubled. I have nothing against the minimum wage being increased. But the fact is that large price increases follow large pay increases.

"$8 for a taco? I can't afford that!"
"Sure you can, you're making $15 an hour now, welcome to the big leagues".
"Do you know the average meal cost $12 these days?"
"Oh well, we'll just raise the minimum wage to $20 an hour, that will fix it!"
"One taco, that will be $14 please".

But it didn't double. It was 4%.

 

[RDKirk]

Have you noticed how the cost of meat has increased?

Do you not think that having to boost sanitary procedures and packaging has increased the cost of restaurant/fast food meals?

Do you not know that droughts, floods, early freezes, and other climate-related problems result in higher prices for vegetables, fruits.

Fuel costs increase delivery costs? Higher fuel costs increase the cost of heating and cooling?

That their stock price was $405 5 years ago and is $1336 today? Hmm...capital gains of $931 per share for the rich, not a penny more in salary for the workers who make the profits possible?

The stock climbed $13 a share after the wage increase announcement (along with a positive profits outlook going forward.) Seems as if most Chipotle investors are willing to do the right thing. For those of you who oppose this wage increase, why aren't you?

I'll have to say this, though: I'd rather see $600 per week pay rates rather than $15 per hour.

 

[hislegacy]

Wait...you actually think a wimpy 4% price increase is a sufficient argument against a wage increase for workers who aren't making enough to live on?

Or is this a Poe?

Wait - have a little patience - let's look again in six months and see:

- increase in prices
- decrease in employee hours
- less full time positions available
- more automation eliminating min wage positions.

Yes it is a sufficient argument when looking at all the moving parts. Remember Chipotle is a Corporation which raised it's prices, but the stores are franchises.

In May, Chipotle said that it would raise hourly wages for its restaurant workers to reach an average of $15 an hour by the end of June. Company executives said at the Baird Global Consumer, Technology & Services Conference that they would be passing along the price of raising pay to consumers.
​

The Corporation sets standards, but the Corporation does not pay the store employees - the franchise does. (Franchise owners are small business men and woman.) The costs of running the business includes fix expenses - rent/mortgage - franchise fees - etc. Then there are what is called 'controllable'. The big three are Labor - food costs - utilities.

Food cost can only be controlled by limiting waste - because they can only buy from the Corporation.

Utilities - you have to balance comfort vs peak seasons. Many franchise owners lock these controls.

Payroll - total labor - (wages, taxes, benefits) to be successful, this needs to be in the 15% range.

Adding 4% to the retail cost is somewhat helpful, but if your labor goes up 40-60%, you have to cut costs other places.

Yes, it's only 4% - the cost in jobs will be higher.

Ever wonder why these are popping up all over?

They are cheaper than the employees they replaced.

 

[Hank77]

Yes it is a sufficient argument when looking at all the moving parts. Remember Chipotle is a Corporation which raised it's prices, but the stores are franchises.

From your link...
Of the nearly 700 stores, only eight are franchises, and the outlook is not good for more franchises being sold. All the rest are corporate owned. In large part, this is due to Chipotle's Food with Integrity program – if the stores are corporate owned, then the stores can be controlled more readily, including mandatory suppliers for vegetables, chicken, pork and beef.

https://www.franchiseclique.com//fr...rill?msclkid=e2f6ff4fc2d91178792a9f8f223403b8

 

[RDKirk]

Wait - have a little patience - let's look again in six months and see:

Then you should have waited before you made your assertion.

 

[hislegacy]

Then you should have waited before you made your assertion.

What assertion are you referring to?

The one one that says they are raising the prices, or the one that no one is surprised.

 

[hislegacy]

From your link...
Of the nearly 700 stores, only eight are franchises, and the outlook is not good for more franchises being sold. All the rest are corporate owned. In large part, this is due to Chipotle's Food with Integrity program – if the stores are corporate owned, then the stores can be controlled more readily, including mandatory suppliers for vegetables, chicken, pork and beef.

https://www.franchiseclique.com//fr...rill?msclkid=e2f6ff4fc2d91178792a9f8f223403b8

Food cost - one of the three controllable

 

[Hank77]

Food cost - one of the three controllable

 

[Arcangl86]

Chipotle raised their average wage by 15% and raised prices by 4%. Why exactly is the sky falling here?

 

[hislegacy]

You do not believe that food cost is a controllable expense?

 

[hislegacy]

Chipotle raised their average wage by 15% and raised prices by 4%. Why exactly is the sky falling here?

They don't cost 15.00 and hour - want to guess why they are rolling them out?



One person does the job of what took six before:

Do you really think it will not cost jobs in the long run?

 

[Hank77]

You do not believe that food cost is a controllable expense?

No, I can't believe that was your response to my response to your post about franchises.