Pros:
1. Justified: Chipotle is a for-profit business and passing on increased labor costs to customers can help them maintain profitability.
2. Fairness: Customers benefit from the services and convenience provided by Chipotle, and they should share in the costs associated with providing fair wages to employees.
3. Paying a living wage: Passing on the increased labor costs can help Chipotle ensure that their employees earn a decent living wage, which promotes fairness and social responsibility.
4. Transparency: Adjusting menu prices allows for clear communication of the impact of rising labor costs to customers.
Cons:
1. Unfair burden on customers: Customers may feel that the increased prices unfairly shift the burden of labor costs onto them, especially if they are already facing financial constraints.
2. Profit concerns: Chipotle is a large corporation with substantial profits, and customers may argue that they should absorb the increased labor costs without passing them on.
3. Competitive disadvantage: If Chipotle raises prices due to labor costs while other competitors do not, it may put them at a disadvantage by potentially driving customers away.
4. Consumer perception: Some customers may perceive the price adjustment negatively and associate it with greed or lack of corporate social responsibility.
context: https://qz.com/chipotle-will-pass-the-california-minimum-wage-hike-on-1850965639
Chipotle recently adjusted its menu prices due to food inflation, however, they still need to make revisions to accommodate rising labor costs. Read more…
