1851

<a href="https://www.chipotle.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chipotle-cfo-breaks-down-how-15-minimum-wage-will-impact-menu-prices-2715553" target="_blank" rel="nofollow">Chipotle’s</a> <a href="https://seekingalpha.com/article/4420423-chipotle-mexican-grill-inc-cmg-ceo-brian-niccol-on-q1-2021-results-earnings-call-transcript?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chipotle-cfo-breaks-down-how-15-minimum-wage-will-impact-menu-prices-2715553" target="_blank" rel="nofollow">first-quarter earnings</a> released on Wednesday, and along with reporting a 23.4% net sales increase compared to last year, the brand’s CFO, <a href="https://ir.chipotle.com/management?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chipotle-cfo-breaks-down-how-15-minimum-wage-will-impact-menu-prices-2715553" target="_blank" rel="nofollow">John Hartung</a>, discussed what a $15 minimum wage increase would mean for the brand. Although Chipotle does not currently franchise, Hartung’s insights apply broadly to the QSR sector.According to Hartung, raising the minimum wage would increase food prices, could cause inflation but also wouldn’t hit the sector too hard.“Our minimum wage, or our average wage right now, is $12 for our crew, and it's $13 for all of our hourly employees. We're not that far off of a $15 number. But let's say, for example, that there's going to be an increase across the board, a 10% increase in our wages. That would have an impact on our margins; I will call it 150 to 200 basis points. And to offset that with menu pricing, that will take a 2% to 3% price increase,” said Hartung.“All of that is very, very manageable. And we feel like if there is going to be significant increased inflation because of federal minimum wage, we think everybody in the restaurant industry is going to have to pass those costs along to the customer,” he continued.Hartung’s analysis mirrors what Vox Co-founder and Author <a href="https://www.linkedin.com/in/matthew-yglesias-6ba5716/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=chipotle-cfo-breaks-down-how-15-minimum-wage-will-impact-menu-prices-2715553" target="_blank" rel="nofollow">Matthew Yglesias</a> told 1851 about a <a href="https://1851franchise.com/a-battle-for-the-wages-2715387">potential federal minimum wage increase</a>.&nbsp;“Restaurant prices are sensitive to the cost of labor, particularly where real estate is cheap,” he said. “In lots of markets, and around where I live, rent is the dominant factor, and you may see the adjustments happen in that dimension. But where labor is a dominant cost, you’ll see lots of more expensive food.”&nbsp;

Chipotle CFO Breaks Down How $15 Minimum Wage Will Impact Menu Prices

1851 Franchise

In a recent earnings call on the brand’s Q1 2021 results, John Hartung discussed the potential effects of an increased minimum wage.

chipotle-cfo-breaks-down-how-15-minimum-wage-will-impact-menu-prices

Children's Lighthouse

How Children’s Lighthouse Stands Out Among Other Children’s Education, Childcare, and Daycare Franchises

how-childrens-lighthouse-stands-out-among-other-childrens-education-childcare-and-daycare-franchises

The Growth Coach

The Growth Coach Franchise Costs, Fees, Profit and Data for 2025

the-growth-coach-franchise-costs-fees-profit-and-data-for-2025

One Hour Heating and Air Conditioning

Why One Hour Heating & Air Conditioning Sees People as the Power Behind Franchise Growth

one-hour-heating-air-conditioning-franchise-growth

Lawn Doctor

Design with photo of John Perry and Lawn Doctor logo

How a 20-Year Industry Veteran Tripled His Sales With a Lawn Doctor Franchise

lawn-doctor-franchise-success-story-john-perry

Fitness Premier

The Secret to Fitness Franchise Success? It's Not Just the Workouts

fitness-premier-franchise-marketing-support

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Design with American and Federal Reserve flags against light blue background

Federal Reserve Expected To Cut Rates by Quarter Point, a Move That Could Boost Franchise Growth

fed-rate-cut-boosts-franchise-growth

Potbelly to be Acquired by RaceTrac in $566 Million Deal 

racetrac-acquires-potbelly-in-566-million-deal

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities - 1851 Franchise Agg

Health Care Hiring Slowdown Highlights In-Home Care Franchise Opportunities 

health-care-hiring-slowdown-in-home-care-franchise-opportunities

Caribou Coffee Names Scott Kennedy CEO, Eyes Continued Growth

caribou-coffee-names-scott-kennedy-ceo-eyes-continued-growth

McDonald’s Launches New Extra Value Meals as Consumer Demand for Value Continues to Climb

mcdonalds-launches-extra-value-meals

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

brass-tap-franchise-pasadena-maryland-hely-hiral-patel

1851 Keyword - The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

The Secret To Succeeding With a Part-Time Franchise Is Picking the Right Model

part-time-franchises-picking-the-right-model

Franchisee spotlight graphic with photo of Ricki Oberoi and Layne's Chicken Fingers logo

Chipotle CFO Breaks Down How $15 Minimum Wage Will Impact Menu Prices

MORE STORIES LIKE THIS