Chipotle Isn’t Serving Tariff Inflation — for Now: Conor Sen

Restaurants are a tough business in the best of times, and these aren’t the best of times. Folks are eating out less, and prices of menu essentials such as beef and coffee have been rising like it’s 2022.

Recognizing that their customers have no appetite for price increases, restaurant chains are disappointing their investors instead — sacrificing profit margins to preserve market share and accepting the brutal stock action that follows. Consumers will cheer stagnant menu prices and seasonal deals, but inevitably businesses are going to claw back lost margins by pressuring their suppliers, closing stores and cutting staff. Eventually, they will ...