Chipotle's response to San Francisco's minimum wage hike is scaring customers
While many praise San Francisco for its recent minimum wage hike, the act inevitably comes with consequences. Now that Chipotle workers in San Francisco must be paid more, the chain hiked food prices up along with minimum wage.
After 77 percent of San Francisco residents voted to gradually raise the minimum wage to $15 per hour over four years, Chipotle resorted to raising prices for consumers.
On May 1, the first incremental wage increase occurred. In order to offset the newly implemented labor costs, Chipotle in San Francisco implemented new prices at as much as 14.4 percent higher than former prices.
A "beef entree" now costs 14.4 percent more in San Francisco than it did before the wage hike. A large soda costs 11.1 percent more, chips are 10.3 percent more expensive, and even the price of water has increased by 10 percent.
Consumers whose wages were not raised in the wage hike are, as expected, less than thrilled about the Chipotle price increase.
Hopefully the popular food chain won't become too unaffordable for deserving consumers!
Watch this video to see how Chipotle maintains steady growth and sales despite price increases:
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