How One Expert Thinks The Avocado Shortage Could Affect Chipotle Sales

When you want to elevate a classic meal, avocados can take any recipe to the next level. This delicious fruit naturally fits in salads, sushi, tacos, and even desserts, making it a versatile and great-tasting addition that makes any meal better. This same popularity has made life harder for anyone looking to grab some fresh avocados. According to Business Insider, the supply of the produce has had to keep up with growing demand, and the tricky practice of maintaining an avocado orchard has caused prices to spike in recent years.

Due to so much demand, avocado prices have spiked by up to 129% in recent years, while Haas avocados doubled in price back in 2019. If you count yourself as a fan of this particular variety of avocados and love getting that extra scoop of guacamole at Chipotle, get ready to brace yourself for potentially tough times. According to CNBC, Truist Analyst, Jake Bartlett, has predicted that Chipotle's profits should take a considerable hit this summer as a result of a decline in avocado shipments. While the sale of avocados only total 5 to 10% of the restaurant's cost of goods sold, the spike in prices of the fruit has the potential to drive prices up by 12%.

When can you expect avocado prices to fall again?

Chipotle's marketing team regularly accounts for avocado price spikes every year. According to CNBC, the Tex-Mex chain braces for spiking avocado prices at the beginning of each business year, but times look tougher than ever before. Currently, the prices of Hass avocados have gone up this year as a result of competition between Mexico and Peru, and prices have jumped by 6%. Luckily, the spike in avocado prices shouldn't translate to higher menu prices, as company executives said that the brand would eat the cost and not pass on the rising cost to patrons.

If you love picking up a bag or three of avocados at the grocery store, get ready to see a spike in prices during your next shopping trip. Instead, avoid the rising prices and keep getting your guacamole at Chipotle to avoid any of the price inflation. With time, hopefully prices should drop and avocados can enter your meal rotation again without putting that extra strain on your wallet, but for now, hold tight and keep an eye on this crowd-pleasing fruit.