Major Food Chain Raises Prices To Pay Employee’s More
Will this be a disaster for the popular restaurant chain?
Unlike other major food chains such as McDonald’s who are choosing to automate their restaurants, Chipotle has decided to raise the prices of their foods to cover the cost of paying their employees more.
Customers can expect a price hike of around 4% for all of the menu items.
After Chipotle employees demanded a raised minimum wage, Chipotle’s CEO Brian Niccol announced in May that the company will pay an average of $15 per hour to their employees.
According to Yahoo, Niccol said that while Chipotle executives “really prefer not to” hike up prices, “but it made sense in this scenario to invest in our employees and get these restaurants staffed, and make sure we had the pipeline of people to support our growth.”
“Chipotle is a multibillion-dollar company with one of the highest-paid CEOs on the planet,” Kyle Bragg, President of a New York-based branch of the Service Employees International Union said. “But it still pays most of its workers across the country less than $15 an hour.”
Do you agree with Chipotle’s decision to pay their employees $15 per hour? Share your thoughts in the comments below…
