Chipotle absorbs tariff costs, keeps prices stable

Chipotle's CEO, Scott Boatwright, announced in a recent interview that the company will absorb any additional costs from tariffs rather than raising prices for customers, even as President Trump's proposed tariffs threaten to impact various sectors. While the potential 25% tariffs on imports from Canada and Mexico could increase Chipotle's costs by approximately 0.6%, the company feels confident in its economic model to withstand these pressures. Boatwright emphasized that passing costs onto consumers would not be fair, and the company plans to keep menu prices constant for now. However, he acknowledged that if costs become a significant burden, price increases may be necessary in the future. Chipotle sources about half of its avocados from Mexico and the rest from other countries, which helps mitigate some of the tariff impacts. The company's approach reflects a commitment to providing value to its customers during uncertain economic times.