Chipotle Mexican Grill, Inc. (NYSE: CMG) is raising its menu prices by about 4% in response to the Company raising the average hourly wage to USD 15 per hour by the end of this month.
Chain restaurants have been increasing their hourly pay in efforts of hiring new employees and retaining old ones. Restaurant dining demand has increased as the world starts to return to normal in the midst of the ongoing pandemic. Chipotle aims to hire 20,000 workers into their existing restaurants. In addition to increasing hourly wages, the Company announced employee referral bonuses of USD 200 for crew members and USD 750 for apprentices and general managers hires as well as mental health care, 401(k) plans, and funded college degrees. The Company is also using creative recruiting campaigns including virtual career fairs on Discord and other digital platforms in hopes of attracting young potential employees. These hiring incentives come after an increasingly difficult labor shortage start to affect restaurants and small businesses during the pandemic.
Brian Niccol, the Chief Executive Officer of Chipotle, has said “We are sharing with people that it’s not just a job right now, but it’s actually a job that can lead to a meaningful career,” in a recent CNBC interview. His message was aimed towards workers that are reevaluating their post-pandemic work situations.
The Company stock is currently trading at USD 1,334.24 during this afternoon trading session.