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> 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 opt
by 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.