In a Tuesday interview with CNBC’s Jim Cramer, Chipotle CSO Jack Hartung discussed business in California since the burrito-maker upped prices in April, saying there’s “macro resistance” from consumers to inflation across the industry.
“Our read on California is less about resistance to our price increase, and it’s more of a macro impact,” Hartung said. “Because when you look at the restaurant industry, the restaurant transactions are down for everybody.”
Hartung formerly served as Chipotle’s CFO, and he characterized the chain’s California price increase as “in the middle” on the spectrum of other restaurants that also made menu items more expensive. The company raised prices in the state by about 7% to offset the new higher minimum wage regulations for fast-food workers, which raised the mandated hourly rate from $16 to $20 per hour.
Chipotle beat Wall Street’s expectations during its last quarterand reported growing market share and restaurant transactions across every income level. Other consumer peers …