Chipotle, Wonder, and climbing restaurant operating expenses

Chipotle is hosting a burrito giveaway during the FIFA Men’s World Cup final July 19, inspired by the tournament’s new hydration breaks, as well as the long-running social media conversation about the chain’s guests who “accidentally” fill their water cups with lemonade. Chipotle has poked fun about those customers with self-aware posts across its social media channels. Simultaneously, the World Cup hydration breaks have also become a focal point of social media fodder.

During the second official hydration break, Chipotle will share a video on Instagram that includes a code customers can text to redeem a free entree. This promotion comes on the heels of the chain’s Matchday BOGO offering guests a free entree if they wore a soccer jersey the day the tournament kicked off. It drove a nearly 60% increase in traffic and marked Chipotle’s busiest day of the year so far.

Wonder’s latest funding round brings its valuation to an eye-popping $9 billion. The company announced a $650 million Series D round Thursday, bringing its total raised to more than $3 billion since 2021. The funding, first reported last week, came from both new and existing investors. Wonder said it will help support new store openings, Grubhub growth, and tech investments, including AI and robotics.

According to new data from the National Restaurant Association, total restaurant operating expenses have jumped 36% since before the pandemic. These increases have come from every line of the PnL, from food and labor to utilities and swipe fees. There is a confluence of factors influencing this inflationary environment, including lingering pandemic-era supply chain disruptions, labor shortages, trade policy fluctuations, and a dizzying food commodities environment.

Though menu prices have increased at the same pace of 36% over the same period, 42% of restaurant operators now report that they are not profitable as many now have higher debt loads accumulated during the pandemic.