Wednesday, August 12, 2020

Chipotle

There are companies that have made us feel marginally better about corporate America during the pandemic. Companies that have made an effort. 

Then there's Chipotle.

I hadn't been to Chipotle since this mess all started, but I went yesterday. Ordered a burrito ($7). Asked for water. The water is free from the fountain.

[Aside: I stopped drinking soda at restaurants because the quality is erratic and it's expensive, except for Jimmy John's, which is always perfect.]

The woman at the counter looked up at me. "We don't have fountain drinks now, only bottled. Is that okay?"

I said "yes" and she handed me a small bottle of water. 

I paid the bill, which seemed suspiciously high. In the car, I looked at both the water and the receipt. 

The water was "Ice Mountain" brand, and it was 19 oz. 

The price was $2.45. That's not a typo. 

It took me about thirty seconds to look up Ice Mountain water and find a 24-pack (16.7 oz) for $9.98. That's .41 a bottle, at the consumer level. Chipotle undoubtedly gets a discount.  

Let's be charitable and say they get it for .30 a bottle. Charging $2.45 is over an 800% markup. 

I understand that profit margins and volume are down for companies. I'm totally sympathetic to that. I'm not sympathetic to marking up water 800% when it's something you offered for free when the fountain was in use. 

You want to do this the right way? Partner with Ice Mountain. Make it a branding and goodwill opportunity. Sell it with a slight markup. Ice Mountain gets exposure for their products. Chipotle lets people know that they're not being ripped off. 

In the long run, I think that generates more business than price gouging. At least, it would have for me, because I'm not very interested in those burritos anymore. 

 


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