Thursday, April 24, 2014

Expect the service sector to cave.

"Chipotle appears to have raised its menu prices by up to 17% in the Las Vegas region last week, around the same time the company announced a plan to gradually increase prices nationwide.

Las Vegas area locations began charging roughly 7% more for burritos, 14% more for guacamole and large drinks, and 17% more for chips, according to Rewardable, an app that collects restaurant pricing data." Here.

Wow. I know food inflation is going to be crazy this summer because of the drought, but the price increases even had my mouth agape. A 17% increase for chips!? And this is the first run. Inflation is too much money chasing too few products or services. The "too few" part only gets worse as summer gets deeper and dryer.

Those are substantial increases and people are going to cut back to compensate for them because they are so shocking.

No comments: