Orange County Register

Can you forgive Chipotle, others for hiking menu prices?

October 25th, 2008, 2:00 am · 18 Comments · posted by Nancy Luna, Staff Writer

Chipotle Mexican Grill reluctantly announced plans this week to raise menu prices 6 percent at a time when budget-strapped consumers seek more food bargains.

But, soaring commodity costs are undercutting profit, forcing the fresh-Mex chain to hike prices. Some Chipotle eateries, known for its giant custom-made burritos, have already changed prices. California prices have not been increased, yet, said Chris Arnold, a spokesman for the Denver-based chain.

“As to when consumers may see an increase, we aren’t releasing a schedule on that,” Arnold said.

Other chains, including the once thriving Cheesecake Factory, are making similar menu tweaks to combat rising food inflation. The King of Upscale Casual Dining said Thursday that it would increase menu prices 2.5 percent next year, a move that follows a 1 percent menu spike in the summer.

Togo's changes sandwich prices.

Togo’s is combating rising food costs by returning to a tiered-pricing menu — something the sandwich chain used to have years ago. Prior to last week, the chain had a flat rate (*$5.19) for all 6-inch sandwiches.

Now, sandwiches that require higher-priced ingredients such as avocado, cheese and its new all-natural chicken are priced higher than others. New prices at a Togo’s in Orange, for example, now range from *$4.79 to $5.79 for a six-inch sub.

Industry experts say in normal economic times, most diners tend to be forgiving when restaurants ratchet up menu prices. But, as more consumers carefully count pennies amid recession-like conditions, a menu increase could force diners to flee, says Ron Paul, president of restaurant consulting firm Technomic in Chicago.

“Customers understand that it’s not necessarily the restaurant’s fault,” Paul said of high food costs. “Having said that, though, (a menu increase) is one more discouragement from eating there. ”

Tell us: Are you forgiving of menu hikes these days? Also, are you dining out less, or trading down to cheaper eats. If so, I’d like to hear your story. Email me your name, and daytime contact information at nluna@ocregister.com.

When a restaurant raises prices, do you stop eating there?

• Yes, always.
• Only during hard times, like now!
• No. I understand.
• Depends on the restaurant.
• find another place to eat
• Depends on the amount prices were raised. A small increase is OK.
• Maybe. My decision would be based upon value received compared with other restaurants.
• They are already over priced. I actually make better food. They are using these times as an excuse. Oil prices are down, so logistics costs are down.
• Add an Answer

View Results

Keep up with menu changes at your favorite SoCal fast-food joints by reading my New on the Menu section.

Related stories:

• Togo’s goes with all-natural chicken
• More consumers nix dinner outings, survey says
• Togo’s offering $1.99 value sandwich
• Arby’s introduces $5 sandwich meal combo to compete with Subway, Quiznos
• Q&A: Togo’s owner discusses chain revamp, menu strategy
• More cheap eats, pastas on tap for Taco Bell and Pizza Hut
• Wienerschnitzel doubles the size of its dog
• Cheap Chic Dining in Orange County
• LIST: Kids Eat Free ..Find out what SoCal restaurants give kids a break
• Jack in the Box adds two new items to value menu
• El Pollo Loco debuts copycat of McDonald’s Snack Wrap
• Taco Bell revamps value menu
• KFC joins cheap eats craze

(*Togo’s prices vary by franchise. The menu, above, displays a price range of $4.59 to $5.59.)

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Posted in: Fast food news • Food Prices • Marketing Buzz • Sandwiches
 

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 18 Comments

• itskiller says:

  October 25, 2008 at 11:35 am

  yeah, raise prices..that’s the smart thing to do in an economic downturn…I’m sure there will be less people frequenting these places, we’ll all be dining at the roach coach soon enough.. :>

  Post Reply
• Brian says:

  October 25, 2008 at 1:41 pm

  When restaurants raise their prices I cut back on eating there. For the past two months I’ve really cut back on eating out. With the price increases not only at restaurants, but at the grocery store, my food budget is only allowing me to buy food from the store only. I look for sales at the store on food. I noticed that chicken breasts were $1.99 a pound for a couple of weeks. Then they jumped to $3.99 a pound. then a week later back down to $1.97. I stocked up and put them in the freezer.
  Restaurants have not only been raising prices, but making portion sizes smaller. This is another factor that really makes me angry with restaurants. It will probably be a long time before I start going back to restaurants on a frequent basis.

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• Dina says:

  October 25, 2008 at 2:03 pm

  I have cut back once a week to once a month. It’s not the money.

  There is no pride in the quality of the product anymore.

  I discovered I saved a few thousand and bought a new car.

  Post Reply
• lwps says:

  October 25, 2008 at 2:57 pm

  What a laugh! Who eats out anymore? 2 or 3 times a year is the norm for me. A sad, but true, reflection of the diminishing wages and higher cost of living in Orange County. Restaurant meals have been a thing of the past for my familiy for a long time. We eat better home cooked meals with the money we save.

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• ocguy92604 says:

  October 25, 2008 at 3:47 pm

  Dave and Buster’s at the Spectrum charged me 50 cents for ranch dressing. They lost my business

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• dave says:

  October 25, 2008 at 4:07 pm

  chiptole is overrated. i dont even eat there now with their current pricing. go to a real mexican restaurant, not one owned by mcdonalds. overpriced tacos with shells u can find at del taco.

  Post Reply
• Diane says:

  October 25, 2008 at 5:38 pm

  I have a family of 5., so eating out is a twice a month habit if that. Therefore, an increase like this doesn’t really matter.

  If the food is good, I will continue to patronize the place.

  Post Reply
• dudeman says:

  October 26, 2008 at 12:19 am

  Chiptole is no good, so why even eat there to begin with? And another thing, appetizers are a scam. They cost about as much as a meal and fill you up, so why even order an expensive entre. If you want to celebrate a special occasion or your dating, then fine, go out ot eat, other wise stay home, cook, and eat well (& save money).

  Post Reply
• Tom says:

  October 26, 2008 at 7:12 am

  I never go to restaurants much anymore because they are WAY overpriced. They have become very greedy when it comes to drinks. 11.00 for an alcholic drink at Sarduccis, when the food isn’t that great to begin with it ridiculous.

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• Tim says:

  October 26, 2008 at 8:38 pm

  Del Taco Del’s Deal….. $2.99 for two 1/2 pound burritos, taco and soft drink. Gotta love DT. (No, I am not with the company … just a cash poor customer)

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• fastfood addict says:

  October 26, 2008 at 11:57 pm

  Chipolte is bland crap! Went there once because I got a free coupon during a grand opening. Haven’t gone back because it was just average, no better/worse than something you’d buy in the frozen /deli section at the store.IAnd I too have noticed prices and portions sizes changing for a while now. And this is not just at big chain places either. Used to be a lunch/dinner at this soul food place I frequent in LA gave me 2 or 3 smothered pork chops, now it’s one big one. These place are slick!

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• Bob says:

  October 27, 2008 at 11:46 am

  Anyone who shops at the grocery store knows food prices are rising. Restaurants are only passing this along to the consumers.

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• CK says:

  October 27, 2008 at 1:04 pm

  ocguy92604 - Hooter’s charges 79 cents for ranch dressing (I think). And, when I paid, they kept my change! Well, I just took it out of her tip.

  Post Reply
• Lisa says:

  October 27, 2008 at 1:10 pm

  I am in total agreement with those saying that Chipotle s*cks. Ate there once, cost an arm and a leg for what we purchased, and we were not impressed with the taste whatsoever. Haven’t been back since.

  Post Reply
• Wonginator says:

  October 27, 2008 at 3:15 pm

  I’m OK with price hikes, depending on the amount of the hike and how much or little I like their food. I like Chipotle’s burritos, as it is as close to a Mission-style burrito (AKA Silver Torpedo) as one can get in SoCal. 50-80 cent increase is OK. $2-3 increase is not.

  A 6% increase on a $6 burrito would be $0.36. I’d be OK still paying $6.36 for their burrito, although it’d be among the priciest for a fast casual chain.

  The chain that seemed to have the biggest price hikes is Rubio’s. I used to go once every month, but now I visit once every 2-3 months.

  Post Reply
• DanGarion says:

  October 28, 2008 at 8:19 am

  What’s to forgive? It’s all part of business, if their costs rise they have to pass that on to the customer. Any person that is too dense to understand this and thinks it’s wrong needs to rethink how the world works. It’s either they raise their prices or they cut down on the quality and quantity they give you…

  Post Reply
• Jan says:

  November 1, 2008 at 1:53 pm

  Any restaurant that raises their prices right now is asking to fail. They can say “it’s all part of business” as much as they want, but so is customers boycotting them and going across the street instead. This also applies to restaurants who are making servings smaller. I went to Green Burrito yesterday and got home before I discovered their hard taco shells are suddenly (WITHOUT NOTICE) significantly smaller. Needless to say, I am done with Green Burrito.

  Post Reply
• Matt says:

  December 16, 2008 at 12:06 pm

  A steak burrito at Chipolte is now more than $7 with tax! This is their second price increase in about a year. Won’t be eating there for lunch anymore.

  Post Reply