Chipotle Raises SF Prices to Correspond With Wage Hike

Some locations have seen a 14 percent increase.

Chipotle, America's favorite fast-casual burrito chain, is asking customers to pay for a minimum wage increase. The company's San Francisco locations have raised prices by as much as 14 percent, reports Investor's Business Daily, corresponding with the city's 14 percent minimum wage hike that went into effect on May 1.

San Francisco Chipotles have seen their prices go up by an average of 10.5 percent, compared to an average 0.5 percent increase at locations in other cities. Sharon Zackfia, analyst for investment firm William Blair, said in a report the steep San Fran increase is no coincidence.

"We believe the outsized San Francisco price hike was likely because of increased minimum wages (which rose from $10.74 per hour to $12.25 on May 1) as well as scheduled minimum wage increases in future years."

Elsewhere on the West Coast, Los Angeles and Seattle recently approved minimum wage increases to $15 per hour. It remains to be seen whether Chipotle will respond in those cities, too.

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