The One Menu Item Most Affected by Chipotle's Price Hike
Steak lovers are in for a nasty surprise the next time they order their go-to Chipotle burrito and find themselves paying a little more than they're used to.
Earlier this month, Chipotle announced that it planned to increase prices as ingredient costs continue to climb. Yesterday, the chain revealed that the price of the steak burrito would be boosted the most in the price hike, according to the Associated Press.
Right now, there is little price-differential between choosing chicken or steak for a Chipotle burrito or burrito bowl. However, with beef costs rising due to reduction in U.S. cattle inventory, the chain now plans to widen the gap.
The price hike also promises to be greater than originally reported – 4 to 6 percent, as opposed to previous reports of 3 to 5 percent. That means paying 32 to 48 cents more for an $8 burrito, instead of an increase of 24 to 40 cents.
Chipotle isn't the only chain finding beef to be less profitable than usual. Fast-food chains have been turning to chicken for more cost-effective menu offerings, with Burger King and Domino's debuting new chicken items. Some are even ready to build new chains around the chicken business -- Yum Brands has been exploring a chicken sandwich concept in Dallas called Super Chix and Umami Burger founder Adam Fleischman is opening his first ChocoChicken location in Los Angeles next month.
Entrepreneur Editors' Picks
'No One Believed' This Black Founder Was the Owner of a Liquor Brand in 2012. He Launched to Great Acclaim — Then Lost It All. Here's How He Made a Multi-Million-Dollar Comeback.
Inspired by Elon Musk's Twitter Takeover, Here Are 10 Marketing Tactics That Will Help You Make the Most of Big Changes to Your Company
These Brothers Transformed a High School Project Into the Largest Online Soccer Retailer of All Time. Here's What the World Cup Means for Business Now.
'I Just Lost All My Life Savings': Michigan Woman Lost $15,000 in Facebook Marketplace Car Scam
This Founder Was Dismayed by Food Waste in the Restaurant Industry, So She Started a Zero-Waste Grocery Line That Now Caters Events for Nike
Netflix's Secret Club Allows Members to Preview Content Before Anyone Else — But There's a Catch
Franchising Could Be the Secret to Reaping the Rewards of a Down Economy. Here Are 5 Reasons Why.