Chipotle Mexican Grill Hikes Menu Prices To Cover Wage Increases

Fast-casual food chain Chipotle Mexican Grill (CMG) is raising its menu prices to cover the cost of higher wages.

The restaurant chain said it plans to hike menu prices by about 4% to cover the cost of raising its workers' wages.

Last month, Chipotle announced that it would increase worker pay to an average of $15 an hour by the end of June. Chipotle also introduced a $200 employee referral bonus for crew members and a $750 referral bonus for Apprentices or General Managers.

The company also said it is looking to hire 20,000 employees across the U.S. with starting wage ranges from $11 to $18 per hour to support current peak season demand and the estimated addition of 200 restaurants this year.

The company's price hikes come at a time when prices for food are rising globally, and at the same time restaurants are finding it difficult to keep staff. Several chains like Chipotle, Starbucks, McDonalds have raised hourly wages for employees of company-owned locations inorder to to attract new workers and retain their current ones.

McDonald's last month said it that it would raise its wages for workers at its company-owned stores, while Darden Restaurants (DRI), which owns Olive Garden, also announced that it would hike wages.

In May, the leisure and hospitality industries added 292,000 jobs, however, employment in those fields is still down by 2.5 million compared with pre-pandemic levels, according to the Department of Labor.

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