Increasing price for the product had happened with every field of business. There are several reasons for increasing price for products, and depends on how reasonably the price for the product is increased determines customer’s attitude towards the company. The factors for increasing price are primarily depends in increase price in ingredient, and inflation. With understandable reason for increase in price can be beneficial to the business, such as giving positive impression to its customers, and it also stands out among the other competitors.
In this article, Chipotle Mexican Grill INC was the example of a hospitality business that is managing well in terms of increasing in price. Chipotle Mexican Grill INC (CMG) is taking patient stance in its pricing strategy, which waits until the other competitors and try to adjust prices in well-suited, understandable range. Since CMG is leading restaurant in Mexican food, their policy/range of increase in price would have influence on the other “burrito chain business.”
Lastly CMG’s “Food with integrity” mantra, I believe their price changing policy is also one of their marketing methods and differentiate themselves from its competitors and in the business where all similarities exist in each company.
http://online.wsj.com/article/BT-CO-20101110-713506.html?mod=WSJ_Hospitality_middleHeadlines
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