More Problems for Chipotle in the Near Future

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Photo: fastcompany.com

As if Chipotle didn’t have enough problems already, the Mexican chain may be dealing with another crisis in the near future. If the 20 percent tariff on Mexican goods proposed by President Donald Trump is implemented, Chipotle could be looking at a major increase in expenses. Mark Kalinowski, an analyst who studies the restaurant industry, writes the chain “likely would bear the biggest brunt” in the entire industry. “Our belief is that the company generally obtains about 70–90% of its avocados from Mexico, all of its limes, the majority of its jalapeños, less than half of its tomatoes, and small amounts of other items (e.g., cilantro),” he estimates. Store sales have already decreased 5 percent again last quarter, the fifth straight that the chain’s reported declines. To read more click here.

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