SAN FRANCISCO—According to a report released earlier this week from wealth management firm William Blair, Chipotle restaurants in San Francisco saw a significant increase in menu prices as a result of hikes in the local minimum wage.
The report noted that Chipotle locations in the city “saw across-the-board price increases averaging over 10 percent, including 10 percent increases on chicken, pork, tofu, and vegetarian entrées along with a 14 percent increase on steak and barbacoa.
Chris Arnold, a Chipotle spokesman, told Slate Magazine he agreed that the rise in minimum wage resulted in higher prices within the city.
“In San Francisco, for example, our occupancy costs are about double the Chipotle average as a percentage of sales, and our menu prices there are right around the average for Chipotle restaurants around the country, so increases to wages can have a greater impact than they might elsewhere,” Arnold said.
The report also stated that large soda prices increased by 11.1 percent and chip prices have been raised by 10.3 percent.
The minimum wage in San Francisco increased by 14 percent from $10.74 per hour to $12.25 on May 1 and is scheduled to increase to $13 next year, $14 in 2017 and $15 in 2018.
According to Mark Perry, professor of economics and finance at the University of Michigan, those visiting a Chipotle in San Francisco will now be paying about $1 extra for each burrito bowl.
Chipotle currently operates 10 restaurants in the city.