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Chipotle Adjusting Menu Rather Than Raise Prices

Posted on March 5, 2014

Holy guacamole, Batman!

Chipotle lovers everywhere are being shaken to the core by a report that the company may have to cut the beloved green gunk from its menu due to global warming. Buried in a 10-K filing from early February, under the “risks to business” heading, was this comment by the Denver-based food chain:

“Increasing weather volatility or other long-term changes in global weather patterns, including any changes associated with global climate change, could have a significant impact on the price or availability of some of our ingredients,” said Chipotle.

That’s the buildup, then Chipotle sticks the knife in. It says if prices go up for crucial ingredients, it could mean an adverse hit on operation results. And then…

“Alternatively, in the event of cost increases with respect to one or more of our raw ingredients, we may choose to temporarily suspend serving menu items, such as guacamole or one or more of our salsas, rather than paying the increased cost for the ingredients.”

Anticipating the potential furor, Chipotle admits that cutting out guacamole, or other vital burrito stuffers, may mean a hit on its restaurant traffic, comparable sales and “could have an adverse impact on our brand.” The stock has been a darling over the last 12 months — up around 78% — and got a sizeable bump after the company posted a 30% rise in fourth-quarter earnings early this year, as more traffic for restaurants boosted sales.

But they know we go there for the guacamole, right?

On its website, Chipotle says it uses 97,000 pounds of avocados on an average day, and it takes 70 to make a single batch of guacamole. The company boasts it provides “Food with Integrity,” such as locally-sourced vegetables — grown on farms within 350 miles of the restaurant — meat from animals that aren’t given antibiotics and 100% recycled napkins.

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9 thoughts on “Chipotle Adjusting Menu Rather Than Raise Prices

  1. Patrick Duffy says:

    Need more avocados? Well you might not want to tear down those dams that held all that WATER needed by FARMERS to water their crops! WHAT A BUNCH OF STUPID LIBERALS! Oh, and you might want to actually PLANT MORE of something that is in demand, that's how you INCREASE THE SUPPLY when the price goes up. Rising prices gives FARMERS the INCENTIVE to grow more of it, thus stabilizing the price! You liberals just cannot understand BASIC ECONOMICS, so you go down the tubes to destruction.

  2. I don't care what they do. The one I visited was terrible. The place was so noisy we could not carry on a conversation. Hard chairs, bare windows, and concrete floors, with nothing to absorb any sound. Food quality and taste? – can't remember because all I wanted to do was get out of there.

  3. "Increasing weather volatility or other long-term changes in global weather patterns, including any changes associated with global climate change, could have a significant impact on the price or availability of some of our ingredients…"

    Governments and universities buying into the global warming nonsense I can understand, but businesses too? Unless they are getting a government grant to "prove" global warming exists, they are just using that hoax as an excuse to cut back. Cultists who believe in human caused global warming are now being granted special status in the UK, because it is recognized as a religious belief rather than science.

  4. I can put my own avocado on my chicken tacos thank you.

  5. Ken in Texas says:

    What utter nonsense. If prices go up, it's due to government monetary policies, not climate change.

  6. Lloyd Bonifide says:

    They’re not going to cut guacamole. My sister’s an MBA treasury VP for a Fortune 500. Being that she loves Chipotle, I forwarded her the article. She says companies are REQUIRED to list EVERY CONCEIVABLE risk, even ones that aren’t going to happen, on their 10K in the name of transparency for investors.

  7. Stupid liberals? You mean stupid conservatives. The owner of Chipotle already said guacamole isn't coming off the menu, regardless of what was in that report. But apparently you didn't bother to research further into this – you simply saw a headline that made you angry and jumped all over it, like the typical sheep conservative you are.

  8. This is exactly correct. Amazing how some people don't understand this.

  9. Its great that they are doing the right thing.