Whatever you can say about Chipote's current problems, this drought is not a factor. All the restaurants should see higher costs as well as home prepared foods. If anything, folks will choose Chipote over the higher end restaurants as prices increase.
Accountant: Input prices are rising sharply. We aren't in a position to raise prices. Margins are going to get hit hard.
CEO: OK, that's what happens when input prices spike. We just need to keep executing and work through it. We'll monitor the business and look for opportunities for pass-through eventually.
jimcasada: No, wait, you don't understand. You see, higher costs are actually GOOD for us. You see, margins will be much lower, but people will buy more.
CEO: You're saying that when costs go up, we make more money even when we don't raise prices.
jimcasada: We make it up on volume!
CEO: You're fired.
"If anything, folks will choose Chipote over the higher end restaurants as prices increase."
More likely scenario is that folks will choose home made meal over CMG. We would never go to CMG for girl's night out or a date night. However, we would rather save from lunch money, i.e. pay less visit to CMG ( $10 sub, you can save $5 if you bring your own lunch, if you go to CMG four times less than average each month, you can save $20 to pay a visit to Cheesecake factory, you don't suffer from eating less in CMG but you gain pleasure of being able to attend girl's night out and having date night ).
My sister told me that she only visited CMG once this month, we are going to a steak house for dinner this weekend, we would NEVER cancel the steak house dinner, life is so short to cancel the sweet sister steak dinner but CMG lunch, that is okay, just lunch, no big deal.
Most of my friends stopped eating at CMG is because they've been gaining weight. Unless you just have the chicken without any sides, but then, what is the allure? The attraction of the CMG effect is that it is SO delicious, it only takes one a few months to figure out it comes with hefty prices. Also, the seating is unique but far from upscale, one cannot replace the experience of a fine restaurant with the fast food themed CMG. Cheesecake factory has high ceiling, nice bathroom, big TV to watch sports, etc, it is not the same.
I just went to Chipotle's website to calculate the average lunch meal's calorie, it is a whopping 1480, OMG! See for yourself! It is their own website, no wonder they have to hide the nutrition value from their menu, only available online. How conniving! Same as they hide the illegal immigrate hiring. This is INTEGRITY! WOW!
My point is that people have the perception that organic food is healthy, but with heavy sources and chips, you add more calories than your daily allowance. Ask anybody who cooks frequently, the delicious CMG burrito bowl does not come purely from the organic chicken, it is from heavy cream and butter and the likes. I go to Penera Bread often, you can often see people get confused about why Tomato Soup has 500 calories, it is just tomato, but hello, the cream that goes with it makes it so so yummi.
CMG is a not a healthy choice, if you are on diet, steamed veggies and fish. Even Penera Bread has more healthy choices than CMG. CMG has chicken salad, greek salad, and Thai Salad, etc. All of them are about 300 to 50 cal, CMG's average meal is 800 to 1000 calorie. It is better than MCD or Pizza hut but it is FAR CRY from being healthy.