If you’ve felt like your Chipotle bowl keeps creeping closer to $15, you’re not imagining it.
And according to the company’s CEO, that is not something he is losing sleep over.
In a recent earnings update covered by Fortune, Chipotle CEO Scott Boatwright made it clear that the brand plans to increase prices by 1 to 2 percent over the next year. The reasoning? Most of their core customers make over $100,000 a year.
Read that again.
The $100K Customer Strategy
Boatwright pointed out that around 60 percent of Chipotle’s customers have average household incomes above six figures. That matters because in today’s economy, not everyone is feeling inflation the same way.
Economists call it a “K-shaped” economy. One group keeps climbing financially. The other struggles or slides backward.
Chipotle is clearly betting on the top half of that K.
The company believes its higher-income, digitally savvy customers can absorb small price hikes without changing their habits. And based on recent performance, they might be right. Even with a dip in traffic, Chipotle still reported nearly a 5 percent increase in net sales, reaching $2.98 billion.
But What About Everyone Else?
Here’s where this becomes bigger than burritos.
The same report notes that Chipotle has seen some pullback from lower-income consumers. That includes younger diners who are dealing with student loans, rent spikes, and wage stagnation.
While competitors like McDonald’s are leaning into value meals and discounts, Chipotle says it will not go that route.
No major shift toward dollar deals. No race to the bottom.
Boatwright even stated that food is worth it and that they are not looking to discount their core offering.
In other words, if you cannot afford it, that may not be their problem to solve.
The Culture Shift in Fast Food
Fast food used to be the budget-friendly option.
Now it is splitting into tiers.
There is discount fast food for people stretching every dollar. And then there is “fast casual” for people who want convenience but are not price sensitive.
Chipotle is doubling down on being the second option.
They are also leaning into high-protein menu items and limited-time offerings that appeal to Gen Z and fitness-focused consumers.
Think lifestyle branding, not just lunch. This is less about guac and more about positioning.
Why This Actually Matters
This story is not really about a 2 percent price hike.
It is about who brands choose to serve.
When a major restaurant chain openly says most of its customers are affluent and can handle higher prices, it reflects a broader economic reality. Companies are increasingly designing their models around consumers who are thriving, not surviving.
For young urban communities and working families already navigating rising rent, groceries, and gas, that divide feels real.
The K-shaped economy is not theoretical. It shows up in your takeout receipt.
The Bigger Question
If fast food becomes less accessible, what happens next?
Do more brands follow this model and chase higher-income loyalty? Or does someone step in and truly own the affordable lane without sacrificing quality?
Chipotle has made its bet.
Now the market, and the culture, will decide if that strategy holds.
