Chipotle Says It Won't Raise the Price of Guacamole
A Chipotle restaurant in San Francisco. (DAVID PAUL MORRIS/BLOOMBERG NEWS)
Chipotle Mexican Grill, a global buyer of avocados, expects that tariffs imposed on Mexican imports could weigh on its profit margins this year. The company on Monday said it aims to absorb potential cost increases, rather than raising customer prices, because of uncertainty about how long the tariffs could last.
Chipotle said on an investor call last month that its cost of goods could increase by around 0.6% this year if the tariffs on imports from Mexico, Canada and China go into effect. About half of Chipotle's avocados come from Mexico. Chipotle also sources limes and other produce from Mexico. The company in recent years has worked to diversify the sources of its imported goods.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Boston Globe
an hour ago
- Boston Globe
Going out to eat is getting more expensive everywhere. It's worse in Boston.
Walking out of an oyster bar in the North End last week, Allison Feeney, 35, said her meal — though 'fantastic'— was 'definitely more expensive than it should be.' Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up 'The dining experience is a central and integral part of my life and something I love to do, so I'm happy to make the investment,' she said. 'But sometimes it's a little bit of a sticker shock.' Advertisement It's not just the oysters, which cost Feeney nearly $4 apiece that night ( The surge in prices is evident across the North End, where one restaurant's $33 bowl of rigatoni is up $5 in the past two years, and another's rack of lamb, which sold for $58 in 2022, has skyrocketed by $20. And it's a microcosm of the whole region, where the cost of eating away from home has outpaced the national average. Advertisement Restaurants said it's not that they're making more money; quite the opposite, they point to rising prices as a reflection of the high cost of buying food, paying staff, and keeping their doors open. 'It's a really frightening time,' said Jen Ziskin, executive director of Massachusetts Restaurants United, a trade group for independent eateries. 'We're trying to figure out, how can we do this differently? How can we run our businesses differently? Because the numbers used to work, and they're just not working anymore.' The steady increase comes amid rising labor costs and supply chain instabilities. Last month, Fitch Ratings Nationwide, menu prices at full-service restaurants were up 4.3 percent over the past 12 months, according to April CPI data. Limited-service prices climbed 3.4 percent. That hasn't stopped people from eating out. Last week, North End restaurants were bustling with tourists and families marking graduation season and enjoying the summer weather. But even with the festive air, some diners couldn't shake the notion their wallets were lighter than celebrations past. 'Even [at] the lower, middle-tier ones where you just go in and pick up something, it's gotten really expensive,' said Brad Davis, 56, celebrating his daughter's graduation from MIT. The rising cost of eating out is in part fueled by the uncertainty surrounding the Trump administration's wide-ranging tariffs on foreign imports. Though most of those tariffs have been put on pause, they have restaurateurs worrying about what will happen to the price of French cheese and Mexican tomatoes. Advertisement 'Businesses that sell stereos or carpets, if they're buying from a different country, they might be able to hold on to that product until this all gets figured out,' said Will Gilson, executive chef and culinary director of the Cambridge Street Hospitality Group. 'Because it's nonperishable, it can sit in a warehouse ... But with restaurants, we can't stockpile meat or produce or fish — these are things that we are ordering almost every day." Because restaurants are limited in what they can do to insulate themselves from tariffs — even those that haven't actually taken effect yet — they have to look at what they can control: the bill. Customers entered Cafe Bonjour at Temple Place in Boston. Barry Chin/Globe Staff If restaurants have to pay more for their inventory — not just food items, but also items such as paper goods and to-go boxes — that's 'not going to make my rent cheaper, it's not going to make labor cheaper,' Gilson said. The choice for many restaurateurs is to either absorb the losses or pass the increases on to the consumer. That, Gilson stressed, is a last resort for any restaurant. Owners like himself are well aware of the consequences. 'Every time you raise your menu prices, we see people order less, spend less, and dine less,' he said. 'People oftentimes eat with their eyes first: looking at a menu and deciding if it's a place they want to go to, and if they can afford to get as many of the things on the menu as they want.' Advertisement That much is borne out by the data: a James Beard The same survey found that 91 percent of respondents raised menu prices at some point last year, a jump from 81 percent in 2023. Some restaurants have turned to alternative ways of recouping their margins. Sometimes, that means cutting back on portion sizes or meal offerings. If the price of beef goes up, Gilson said, he might lower the price of a strip steak from $50 to $40 — but serve it 'a la carte,' with fries and asparagus as separate add-ons rather than sides. That's changed the way that diners are looking at their meals. 'Things that are add-ons, like, truffles, no,' said Feeney. 'I kind of think the upsell on that is not worth it.' Less often, that means a surcharge on all items using a particular ingredient. That's what Gilson said he did with That method can't work with everything. If the wholesale price of poultry had been as affected by bird flu as the price of eggs, he mused, he would have had to make a difficult decision. 'We serve an amazing chicken here; we pay top dollar for it; it spends 24 hours in brine,' he said. 'But I can't compete with the grocery store selling it as a loss leader at 10 bucks.' Advertisement A whole rotisserie chicken with sides of spiced cauliflower and farmers' farro at Gilson's Amba Cafe in Cambridge. Ken McGagh for The Boston Globe That means that some dishes have to go by the wayside. 'I remember [early] in my career bringing in wild European turbot,' said chef Chris Coombs. 'That was a fish that was pricey then, but you could probably get it on the plate for $40 or $50. Now, I think I'd probably have to serve it at 120 bucks, 130 bucks. So it comes down to what people are willing to pay for their food.' Coombs, who runs Deuxave, Boston Chops, and Bosse, among other restaurants, said price increases are gradually hollowing out the local dining scene. 'It's prohibitive for anyone who makes less than $200,000 a year to be able to go out to dinner regularly in the city of Boston,' Coombs said. 'All the people who make $125-to-$150,000 a year, that used to be able to go out three or four nights a week, now they can only afford to go out one night a week.' As prices go up, more and more diners are 'trading down,' he said, opting for cheaper, fast casual options rather than mid-tier sit-down restaurants. 'People are finding other ways to still spend what they're comfortable spending,' he said. 'Whether it's drinking less alcohol, getting cocktails instead of wine, getting one appetizer instead of two.' That's not to say that everyone is tightening their budget. There's still a reliable group of diners that are 'flush with cash, and they don't care what anything costs,' according to Coombs. 'But I can tell you for certain, there's a finite number of those people,' he added. Camilo Fonseca can be reached at
Yahoo
3 hours ago
- Yahoo
China Exports to US Fall Most Since 2020 Despite Trade Truce
(Bloomberg) -- Supply Lines is a daily newsletter that tracks global trade. Sign up here. Next Stop: Rancho Cucamonga! Where Public Transit Systems Are Bouncing Back Around the World ICE Moves to DNA-Test Families Targeted for Deportation with New Contract Trump Said He Fired the National Portrait Gallery Director. She's Still There. US Housing Agency Vulnerable to Fraud After DOGE Cuts, Documents Warn Chinese exports rose less than expected last month as the worst drop in shipments to the US in more than five years counteracted strong demand from other markets. Exports rose almost 5% from a year ago to $316 billion in May, slower than economists' forecast of 6% growth. Despite record exports so far this year, the slump in US demand may have been one factor in convincing Beijing to sit down with US President Donald Trump's trade negotiators in Geneva and agree to a tariff truce. China's exports to the US fell 34.4%, according to Bloomberg News calculations, the most since February 2020, when the first wave of the pandemic shut down the Chinese economy. That was despite the agreement reached May 12 that gave temporary relief to imports from China that would have faced as much as 145% duties. That sharp decline offset a 11% rise in exports to other countries, showing the heft of the world's largest economy even as Beijing reduced its reliance on direct shipments to the market after Trump's first term. The benchmark CSI 300 Index for onshore stocks pared gains after the release and was up 0.2% at the lunch break. 'The trade outlook remains highly uncertain at this stage,' said Zhiwei Zhang, chief economist at Pinpoint Asset Management. He added that frontloading should help sustain export momentum in June but may fade in the coming months. Shipments to Vietnam jumped 22%, rising above $17 billion for the third straight month as Chinese companies continued to ship through third countries to try to avoid US tariffs. However that flow is pushing up the US trade deficit with Vietnam and other nations, further complicating negotiations with the US about their own tariffs. The data showed a recovery in shipments of rare earth elements, which have become one of the key points of US-China contention. Earlier this year China imposed an export license requirement on some of the elements and products such as magnets, radically slowing down shipments and forcing manufacturers globally to halt some production lines. Beijing's grip on these exports will be top of the agenda when trade negotiators meet in London for talks later on Monday. Weak Chinese Demand Imports fell 3.4% for a third straight month of declines, leaving a trade surplus of $103 billion, according to official data released Monday. The weakness of the Chinese economy was underscored earlier with the release of inflation data showing the country continued to be in deflation in May. Factory prices fell for a 32nd straight month, while consumer prices also declined from last year. What Bloomberg Economics Says... 'A slowdown in China's export growth and deeper decline in shipments to the US in May suggest the trade-war truce that brought temporary tariff relief hasn't made a major difference yet.' — David Qu, economist Read the full note here. Still, the overall growth in exports will continue to support the economy, with the record trade surplus of almost half a trillion dollars so far in 2025 a boost to companies facing weak demand at home. In the second half of the year, however, China could face a drag on growth should risks to global trade materialize. The US is threatening to raise tariffs on many countries from early July and on China from August. That could further slash demand for Chinese products destined directly for the US and also used as inputs into other nations' manufactured goods. Even if China and other nations are able to strike a deal with the Trump administration, demand from the US and elsewhere might still weaken as companies slow down their frantic purchasing aimed at beating the tariffs. (Updates with more details throughout.) The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again Is Elon Musk's Political Capital Spent? What Does Musk-Trump Split Mean for a 'Big, Beautiful Bill'? Cuts to US Aid Imperil the World's Largest HIV Treatment Program ©2025 Bloomberg L.P. Sign in to access your portfolio
Miami Herald
21 hours ago
- Miami Herald
Dutch Bros. adds breakfast menu to take down Starbucks
Dutch Bros. coffee started as a pure beverage rival to Starbucks and other coffee chains. It was a disruptor of sorts, as most of its locations are drive-thru only. It's a model that has been copied heavily by growing rivals like 7 Brews, but at the time it was a stripped-down, back-to-basics model. Related: One of Texas's oldest BBQ joints is closing permanently after 34 years The company literally began as cart way back in 1992, before the chain began franchising in 2000. It was a slow climb to becoming a real player, but it has steadily grown, reaching a milestone earlier this year. "On February 7, we opened shop number 1,000 in Orlando, Florida, 33 years after our founding and 3,000 miles from our original push cart in Grants Pass, Oregon. With a long runway ahead and conviction in our brand, we aim to open the next 1,000 new shops with the goal of 2,029 total shops in 2029," said CEO Christine Barone during the Dutch Bros. first-quarter earnings call. Don't miss the move: Subscribe to TheStreet's free daily newsletter She is quite confident the company will reach that goal. "We see a long-term opportunity to drive sustainable transaction growth by addressing structural barriers, bringing in new customers, enhancing frequency with existing customers and sustaining ongoing momentum in the productivity of our newer shops," she added. When you look at the Dutch Bros. menu, it's almost entirely drinks. The chain has expanded beyond coffee into smoothies, lemonades, iced teas, sodas, and more. It also offers a very limited snack menu consisting mostly of muffin tops. The chain does, however, see a growth opportunity in food. Barone spoke about that as well. "We see a clear path forward with Order Ahead, throughput and food," she said. More Food: Applebee's brings back all-you-can-eat deal to take down Chili'sPopular Mexican chain reveals surprising growth plansStarbucks CEO shares plan for a whole new menu The coffee chain has been testing a small breakfast menu in a handful of locations. "We are thrilled with the success of our limited food test launched late last year and are excited to continue testing and refining this initiative throughout 2025," she added. The hot breakfast menu includes four smaller-sized items: a sausage, egg, and cheddar slider; bacon, egg, and cheddar slider; chorizo wrap; and a maple waffle, according to Nation's Restaurant News. The test will be expanded to more locations this year. The coffee chain has taken a "move slowly" approach to growth. It's going to continue to do that. "Building on the success we are having with our Order Ahead initiative, we believe food can generate incrementality in the morning day part and drive frequency. Our approach to this test is both strategic and deliberate. We recognize the potential multi-year growth opportunity with our current food mix at less than 2% of sales," Barone said. Dutch Bros. has also remained focused on making sure it keeps its workers happy. "Our goals for this test are clear: maintain existing high levels of barista job satisfaction, continue to support throughput efficiency, minimize complexity, and offer a targeted assortment that allows us to satisfy our customers' craving for food while capturing incremental beverage opportunities," she added. Barone made it clear exactly how the company decided what it adds to its menus. "The pilot test has informed our decision to now offer eight SKUs, including four hot food offerings. With the completion of an initial pilot, we recently expanded this initiative from eight to 32 shops," she shared. Related: Burger King menu adds a wild new Whopper That's only the beginning, as Dutch Bros. sees adding breakfast as a massive opportunity. "Looking ahead, expanding the food test pilot is a crucial step towards a broader test and rollout anticipated to occur throughout 2026. This expansion aims to reach a wider potential audience and positions Dutch Bros more competitively in high value routinized beverage occasions," she added. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
