Posted on 07/29/2014 6:28:27 AM PDT by C19fan
Corporate America can learn a lot from a chicken burrito. As many companies struggle to boost prices without alienating consumers, they may want to study Mexican-food chain Chipotle, which has managed to do both.
Companies including Chipotle Mexican Grill Inc (CMG.N), Apple Inc (AAPL.O) and PepsiCo (PEP.N) have shown they're able to take advantage of quality, trendiness, and, in the case of Pepsi's snack foods, market dominance, to maintain high prices or even raise them faster than the inflation rate, now at about 2.1 percent in the U.S. Chipotle raised chicken-dish prices by 5 percent this year after leaving them untouched since 2011, and sales went up 29 percent last quarter.
(Excerpt) Read more at finance.yahoo.com ...
Chipotle here in L.A. has opened an Asian version that is goog. It’s called Shop House Kitchen.
It’s the same concept:
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http://shophousekitchen.com/
That is good.
another food & beverage trend is the “limited release” (as in one day availability) high end beers (that can be between 8-13% alcohol). Pricing per 12 oz bottle can range from $8-12 (and if you “pass” on it, you miss out, so sad).
Some people like being gouged I guess.
They can be good, they aren’t better than a $10-15 22oz “bomber” yet cost almost twice as much and they don’t all “live up to the hype”. Then again, the product usually sells out before the first review hits the internets.
There’s nothing wrong with sucking money out of the home-equity ATM, and buying overpriced tacos at trendy fast-food joints.
That’s the American way.
I used to like Chipotle, but I refuse to patronize them anymore. Not only did the raise their prices, they also decreased portion sizes. When Chipotle started, they had huge burritos with decent meat and veggies. Now, it’s $10 for a burrito and a drink and the burritos are the size of Taco Bell’s.
You can raise prices or reduce portions. But not both. No way I’m paying that premium.
You've got that right!
The problem I see here is that when one food chain raises their price,it gives a “go” signal to the others & then we ALL pay more
Yes, you can get your coffee cheaper at a gas station, go to Best Buy to get a cheap knockoff tablet or buy some rotgut at your local liquor store. Or you can go to Taco Bell to get your burrito on the cheap if you don't want to pay the price that Chipotle charges.
I'm surprised with some of the negative comments here about out capitalist system.
Hubby and I eat every meal at home except on Wednesday night and that is just an excuse to get out of the house together.
We don’t do anything fancy. We have a Mexican place here that does 2 for 1 on Wednesdays. I’ve found a really nice and cheap Chinese place. We usually don’t spend over $15 on dinner for us.
My Wisconsin local Chipotle is still at $6.95 for the Burrito.
It’s overpriced. Plenty of good burgers and barbeque sandwiches available for below $8.
The food at the wagons is NOT that good and some grudgingly admit that the prices are extreme.
If you like being exploited to be on the cusp of a commercial trend, so be it and have a happy day.
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1. You have no idea if it is overprices, as you’ve never seen the portion sizes.
2. You have no idea if the food is not that good, as you have never eaten at any of them.
3. You have no idea what exploitation is, as evidenced by your completely nonsensical statement above. Many of the food trucks are creating pretty unique combinations of flavors that are not readily available elsewhere.
But please, don’t eat at any of them so you can have an informed opinion. Continue to spout off on that which you have absolutely no direct experience.
You think I am talking about your nuvoniche restaurant. I am talking about the entire lock stock trend, having dined as such in Houston, Austin, and Brooklyn.
Over rated.
When asking a premium price becomes price fixing (as Sony and other major music publishers did with their illegally negotiated price gouge on CDs), it is criminal.
capitalism doesn’t have to equal crime.
The article sustains my point that their peers (and not just restaurants but even competing candy manufacturers) are all agreeing to hike their prices at the same time. Coincidence?
You think I am talking about your nuvoniche restaurant. I am talking about the entire lock stock trend, having dined as such in Houston, Austin, and Brooklyn.
Over rated.
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Gotcha.
I try to form opinions based on direct experience, instead of lumping everything together and pronouncing the entire thing bad.
I’ve eaten at food trucks in a number of cities as well (some crossover with the cities you mention). Some are out of this world good, and some are ordinary.
People will pay more for quality. That’s really not hipness, just normal market function. Yes Chipotle burritos cost more than Taco Bell burritos, because all Taco Bell products taste the same and not very good, and Chipotle products actually taste like different product and generally are good.
Have eaten there a couple of times. Not bad but a bit bland. Nothing to write home about.
Good hot dogs (and it was only a food truck for a year while they expanded their restaurant location) can be found at an establishment in Houston (that has no webpage other than facebook, but plenty of hipster attitude about those complaining about the service, prices, wait times upwards of an hour, etc.). They are made from duck, rabbit, bison, hog, lamb, etc.
When they reopened the price went up about a buck fifty.
$7 hot dogs are a premium pricing. What was good at $5.50 doesn’t offer the same enjoyment at $7 (when it takes 2 to fill up). I can go to a real restaurant for $14 a meal.
Economics 101 teaches this. As price increases, demand declines (even among those who love the product).
This article was aimed at marketeers with the implication that “hip” (their word) millenials are not as affected by price hikes. They buy into branding.
The Democrats push this same thinking. Pay more (for healthcare, taxes, etc.) get less and LOVE the Party for it.
KK over expanded, they put themselves in a position to compete with themselves (selling their own product in their stores and most of the grocery stores) and that spells problems. Chipotle is growing slowly and in a controlled manner, carefully not over saturating markets. And they really aren’t a fad. Well maybe in new areas they get a fad bump, but they keep a solid audience after the new wears off.
KK didn’t just overexpand they were a fad.
There is not a single one left in my metro area.
I grew up on KK in the south. Good product but sadly they let a bunch of New Yorkers drive them into the ground.
Chipotle won’t go out of business but it’s a fad in a few years they will be like Olive Garden unable to raise prices without losing market share.
I am out of my element.
I’m talking about food, and the unique flavors some of the local food trucks are putting out there. I find the value they provide good and the quality even better. Especially given the lack of frequency at which I am able to eat at them.
You are talking about hipsters, economics, and Democrats. They don’t serve them at the food trucks I go to.
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