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This is a good thing. Everyone _should_ be happy to pay an extra 5-10% if it goes to the workers.
by vgeek 5y ago
This is a good thing. Everyone _should_ be happy to pay an extra 5-10% if it goes to the workers.
- listenallyall 5y agoOh, how simple it is to fool the common folk. Chipotle is going to pay market wages, regardless, or it will have to close stores due to lack of employees. Its pre-pandemic operating margin was over 20% so it can rather easily absorb a 4% boost in labor costs. What you, as a Chipotle customer, are paying, is a surcharge to help the CEO and exec team grow operating margin and profits and earn a big bonus. That's all. (https://ir.chipotle.com/2020-02-04-Chipotle-Announces-Fourth-Quarter-And-Full-Year-2019-Results https://ir.chipotle.com/2020-02-04-Chipotle-Announces-Fourth...)
- jjeaff 5y agoBut does this grow operating margin or does it keep it around 20%? Labor costs have gone up, if by enough, then this is simply maintaining margins.