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Chipotle: Trump's proposed taxes on Mexico may lead to pricier burritos

June 3, 2019

Chipotle customers may soon see price increases. Chipotle Mexican Grill CFO Jack Hartungsaid said the chain's 2019 costs could increase by about $15 million this year if President Donald Trump goes through with his promise to add a 5% tariff to all Mexican goods starting June 10 if the country doesn't help prevent illegal immigrants from entering the U.S. border.

"If the tariffs become permanent, we would look to offset these costs through other margin improvement efforts already underway," Hartung said in a statement published by CNBC. "We could also consider passing on these costs through a modest price increase, such as about a nickel on a burrito, which would cover the increased cost without impacting our strong value proposition."

Trump's plan calls for a gradual increase which could go as high as 25% this year.

 "We know that we could easily solve the volatility in our supply chain by purchasing premashed or processed avocados, which would be cheaper, readily available and provide stability, but we are committed to our brand purpose and upholding our food with integrity principles," Hartung said. "We believe that using whole, fresh ingredients and making guacamole by hand in our restaurants each day leads to better tasting guacamole that our customers deserve and expect from Chipotle."