Spicy season
America’s appetite for fast-Mexican is showing few signs of waning, with Chipotle reporting a spicy 14% jump in annual sales yesterday, while quick-serve industry leader Taco Bell revealed a milder 9% jump in revenue this morning.
Chipotle’s results were served with a 7% uptick in footfall in Q4, bucking the trend seen at rivals Starbucks and McDonald's, both of which reported declines in foot traffic. Customers appeared broadly unfazed by Chipotle's price hikes, with strong demand propelling the company to just shy of $10 billion in sales, as it looks to onboard some 19,000 new workers for the bustling “burrito season” period from March to May.
Taco Bell has also been hiking prices — upsetting some of its loyal customers, who turn to it as a value option — with data sourced from Reddit revealing that Taco Bell dominated mentions on the social media site… but often because customers were complaining about the price of their meal.
Despite the price rises at fast-food favorites, America can’t seem to get enough of Mexican-inspired bites and Tex-Mex food more generally. In New York City, taquerías are booming, and an analysis of new menu items released at chains across the country found that many of the new dishes include Latin or Latin-inspired ingredients, with Birria (a Mexican stew) and chicken taco salad among the fastest-growing menu items.
For the mass market, Chipotle finds itself at the center of that boom, with plans to open another 285+ restaurants in 2024.
