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That's not what the article claims: > Chipotle, a Mexican-themed restaurant chain, said that “historically high avocado costs” were a big reason why it posted
by tgb 9y ago
That's not what the article claims:
> Chipotle, a Mexican-themed restaurant chain, said that “historically high avocado costs” were a big reason why it posted disappointing financial results last year.
- hobs 9y agoWhat do you think disappointing financial results because of Avacados is claiming then?
- mastazi 9y agoparent comment said "that's not what the article claims", which (if you want to be nitpicky) is correct because the article reports a claim made by the company, without explicitly supporting it.
- tgb 9y agoThe post I replied to is claiming that they lose money on each sale of guacamole. (This is clear from bringing up the possibility of raising prices of the optional add on guacamole.) However, this is clearly much stronger claim than merely that Chipotle is doing worse financially than if their avocados cost less.
- traek 9y ago> The post I replied to is claiming that they lose money on each sale of guacamole. (This is clear from bringing up the possibility of raising prices of the optional add on guacamole.) That's not what they're claiming, they're saying that if ingredient prices rise (e.g. for avocados) Chipotle can raise menu costs to protect margins. Nowhere is it implied that guacamole was being sold below-cost.
- tgb 9y agoWell, the comment did say "losing money", but either way, that's not what was claimed in the article and that distinction is exactly what I was pointing out. High margins does not mean that they do well financially, obviously! Unless you think that the original remark was "I don't understand how raising prices could lose business" then this isn't what the article was saying. I don't understand what the confusion is: the article says they do less well financially than they would have if their ingredients were cheaper. The original comment here says "but they can always raise their prices" but that cannot guarantee that they do well financially. If the article had claimed that their margins were too low or that the extreme that they were losing money from each sale, then the first comment would have made sense. But it doesn't.
- ceeker 9y agoThis is the bit that you are missing: >>Some restaurants were forced to add a surcharge on guacamole, or temporarily to scrap it from their menus altogether. Others swallowed the bill. They could raise prices but they have chosen not to so far. They may have to in the future. That explains why their financials were not great.