Price hikes are on the menu at Starbucks, Chipotle and other major restaurant chains


Jthink twice before going out for a coffee or a bite to eat: inflation is on the menu.

Restaurants across the country are wondering how to cope with the increase labor costs, food and other supplies. The response, for several national chains, including Chipotle and Starbucks, is to pass this increased spending on to consumers by raising menu prices.

Overall, the Labor Department says the cost of out-of-home food rose 6% nationally for consumers between December 2020 and December 2021, marking the largest price increase since January 1982. At during this same period, on the whole inflation also hit its highest level in 40 yearsat 7 O’clock%.

Where Restaurant Prices Are Rising

Some food chains raise their prices well above the normal rate of inflation. Here’s a look at how menu prices have changed at several top restaurants.

Chipotle

At Chipotle, you’ll now get less burrito for your money.

Fast food chain Tex-Mex raised prices by 4% across the board in December alone, contributing to an overall rise in food prices of around 10% since last year.

During this same period, The Wall Street Journal reported that sales increased by 15.2%. CEO Brian Niccol told the newspaper that another price hike is likely later this year.

Dominoes

At the ICR 2022 investment conference in January, Domino CEO Ritch Allison said he expects the pizza chain to face an “unprecedented rise” in food costs this year. .

The company is experimenting with ways to offset these costs without raising pizza prices across the board.

For example, Domino’s would limit certain national promotions to online orders only and reduce the number of chicken wings included in some offers. The net result is that you will pay more or get less (or both).

Through May, Domino’s is also offering $3 off take-out orders in an effort to reduce delivery costs.

Disney Restaurants

In addition to more expensive theme park tickets, some Disney Park guests have noticed price increases at Disney restaurants.

Alessa Dufresne, an Orlando-based Disney blogger for Inside The Magic, noted that several dishes and cocktails at The Happiest Place on Earth cost $2 to $3 more in 2022. Examples include a rum cocktail called the Nautilus, which is now $35, down from $32 previously. A seafood pie dish jumped $3 to $28. A lemon herb chicken entree sells for $24, down from $22 previously.

Disney Chief Financial Officer Christine McCarthy announced some of those changes in a call for fourth quarter results.

“We can reduce portion sizes, which is probably good for some people’s waistlines,” McCarthy said of inflationary pressures. “We can review pricing if necessary.”

McDonald’s

The Big Mac is now offered at a higher price.

To follow the meat price spike as well as a roughly 10% increase in wages for McDonald’s employees, the fast-food chain raised menu prices by about 6% in 2021, according to chief financial officer Kevin Ozan.

“We ended up with prices for the year just slightly above 6%,” Ozan said on a quarterly earnings call in January. “It was relatively similar to where food away from home [inflation] was for the year in 2021.

On the call, executives hinted that further price increases could occur in 2022, but did not elaborate.

Starbucks

Coffee chain giant Starbucks is planning its third price hike in recent months, but executives say it hasn’t dampened demand.

In one call for quarterly results On February 1, CEO Kevin Johnson said the company raised prices in October 2021 and January 2022.

“We have additional pricing actions planned for the remainder of this year,” Johnson said.

Starbucks hasn’t said exactly how much menu prices have gone up or will go up for those looking to get their caffeine fix.

However, CBS reported that the price of a Venti (large) coffee was $2.45 in 2021 but now costs $2.95 in some places, a 20% increase.


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