Chipotle Still Has Pricing Power, CFO Hartung Says

The transcript discusses the rising costs in the restaurant industry, focusing on how companies like Chipotle have managed pricing power and wage increases. It highlights the challenges of inflation and the potential for future price hikes. The discussion also contrasts the pricing strategies of franchise versus owned restaurants, emphasizing the impact of inflation on debt management.

What strategy do restaurants often use instead of immediately raising menu prices?

• Find efficiencies

• Increase advertising

• Expand menu options

• Reduce portion sizes

Why did Chipotle raise its prices in the second quarter of last year?

• To compete with other restaurants

• To cover the cost of raising wages

• To increase profit margins

• To introduce new menu items

How did customers react to Chipotle's price increase?

• They demanded more discounts

• They supported the wage increase

• They complained about the price hike

• They stopped visiting the restaurant

What is the typical level of inflation the restaurant industry is used to?

• No inflation

• Low single-digit inflation

• High single-digit inflation

• Double-digit inflation

Why might franchise organizations struggle more with inflation compared to company-owned restaurants?

• They have more employees

• They rely on borrowed investments

• They have fewer menu options

• They are located in more expensive areas