The CEO of Chipotle says the company will deal with any tariff-related price rises.
The burrito vendor won’t have to pay for many of the costs that Trump’s planned tariffs will cause.
The U.S. economy is being affected by President Trump’s plan to put tariffs on the country’s biggest trade partners. Both businesses and consumers are getting ready to pay more.
At least for now, it looks like things will go more smoothly at the register for Chipotle guests.
In an exclusive interview with Hallie Jackson on the Sunday version of “NBC Nightly News,” Chipotle CEO Scott Boatwright said that the company plans to keep prices the same for customers for now, even though some of its costs of goods are going up.
“As of right now, our plan is to absorb those costs,” he said, but he warned that prices might change in the future if the higher costs become a “significant headwind.”
Chipotle won’t have to deal with many of the costs that come with the tariffs Trump wants to put in place. If they are put into place next week, they would put 25% duties on goods from Canada and Mexico and an extra 10% on goods from China on top of the 10% tax that was put in place last month.
Chipotle’s CEO, Boatwright, predicts that planned tariffs on avocados will increase prices by 0.6% over time. Despite this, Chipotle’s economic model allows them to handle inflationary pressures without passing costs on to customers. Boatwright plans to keep prices unchanged this year, unsure of the temporary or permanent nature of the tariffs.
He went on to say, “We don’t think it’s fair to the customer to pass those costs on to them, because prices will stay the same.” Now, let’s go back to the idea of giving the customer a lot of value. We’re not going to change our minds.
Starbucks’ recent hiring of Brian Niccol as Chipotle’s new CEO has led to a drop in the company’s stock and a forecast of less sales growth in 2025. However, CEO Bobatwright remains optimistic about the company’s future and plans to open over 300 new stores. He believes maintaining prices and offering variety with healthy ingredients will deliver value for consumers. Additionally, the company has introduced AI tool Ava Cado to streamline job application processes.
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