HomeIndustriesChipotle Will “Probably” Increase Prices in California Due to Minimum Wage Bill

Chipotle Will “Probably” Increase Prices in California Due to Minimum Wage Bill

You might have noticed that your favorite Chipotle items have been more expensive than ever in 2022 as the fast-food chain served their customers with two significant price hikes this year. And it might not be the end of it, at least for Chipotle enthusiasts in California.

Speaking at Yahoo Finance’s All Markets Summit earlier this week, Chipotle CEO Brian Niccol said that the company will “probably” increase its prices at locations in California due to the state’s upcoming bill that is set to increase minimum wages for fast food workers.

“We pay well beyond $15 an hour in California,” said Niccol. “So there is legislation that has the potential to take the hourly wage up to $21, $22 an hour that will put organizations in a place where prices probably have to rise.”

Niccol added that the bill might also prompt the company to rethink its decision to expand the business in the Golden Stat. Chipotle currently has 449 locations in California, which is around 15% of all its stores in the United States.

California governor Gavin Newsom recently proposed a bill that aims to improve the status of fast food workers in the state. One of the key points of the bill is raising the minimum wage from $15 per hour to $22 per hour. The bill is expected to find its way on California 2024 ballot propositions if it receives the required number of signatures by December.

Tesla Q3 Deliveries Miss Estimates

Electric Vehicle (EV) automaker Tesla missed market estimates for its deliveries in the third quarter. After reducing production because of planned factory shutdowns, the...

Higher Rates Affecting Profits, Goldman Analysts Warn

Goldman Sachs Group Inc. analysts have warned that rising interest rates are starting to have a detrimental effect on U.S. corporate profits. The strategists,...

Futures Steady After U.S. Government Avoids Shutdown

Equity futures remained relatively unchanged on the New York Stock Exchange on Monday morning after U.S. lawmakers narrowly avoided a government shutdown. Members of...