Chipotle CEO on Menu Prices “California Isn’t Making It Easy”

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via Mike Shedlock

Food away from home has risen at least 0.3 percent for 34 out of the last 36 months.

CPI data from the BLS, California Fast Food Prices Gordon Haskett

Sticker Shock in California

Higher state minimum wage went into effect April 1; chains say burritos and burgers are getting more expensive in response.

The Wall Street Journal reports California Fast-Food Chains Are Now Serving Sticker Shock

Since September, when California moved to require large fast-food chains to bump up their minimum hourly pay to $20 in April, fast-food and fast-casual restaurants in California have increased prices by 10% overall, outpacing all other states, the firm found in an analysis of thousands of restaurants across 70 large chains.

Prices at Chick-fil-A, Domino’s, McDonald’s (MCD) Burger King (BKC), Pizza Hut (YUM), Jack in the Box (JACK ) and other fast-food chains have increased since September, the firm found. Chipotle (CMG) said in an investor call Wednesday that prices at its nearly 500 California restaurants climbed 6% to 7% during the first week of April compared with last year, playing out across its menu.

“The state isn’t making it easy,” Chipotle Chief Executive Brian Niccol said in an interview.

In Los Angeles on a recent April afternoon, Seth Amitin, a 39-year-old therapist, said his usual $16 meal that he picks up weekly at the Chick-fil-A in Hollywood, Calif., now costs $20. The price for a spicy chicken sandwich at that location had gone up to $7.09 from $6.29, or 13%, since mid-February, according to research by Gordon Haskett Research Advisors. Chick-fil-A’s prices increased 10.6% on average in California during that time period, Gordon Haskett found.

California restaurants already had some of the highest fast-food prices in the country, according to market-research firm Revenue Management Solutions. Every month since October, California fast-food and fast-casual restaurants have raised prices across a greater percentage of their menus compared with restaurants in the rest of the country, Datassential found.

Auto and Home, Insurance & Maintenance Costs Soaring and People Are Angry

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Insurance, repairs, and maintenance costs are up for both homes and autos.

On April 19, I noted Auto and Home, Insurance & Maintenance Costs Soaring and People Are Angry

Some homeowners are skipping home insurance. What’s going on and who is to blame?

Growth in Spending Exceeds Growth in Income for Most of the Last 10 Months

A deeper dive into personal income and outlays for March shows significant signs of consumer stress to maintain standards of living.

Real Income and spending data from the BEA, chart by Mish

For discussion, please see Growth in Spending Exceeds Growth in Income for Most of the Last 10 Months

Would you believe …

On April 20, I noted Truflation Claims Inflation is 2.06 Percent

Would you believe believe year-over year inflation is barely over two percent? That’s the Truflation claim as of April 17, 2024.

Some otherwise bright people on Twitter whom I follow actually believe that Trufltion nonsense. Click on the above link for details.