My recent visit to Chipotle: a microcosm of the economy?
I used to love Chipotle, and I certainly still love the food (when they have it). Rice, fajitas, NO beans, double steak, toma....sorry, I digress. But I have noticed a continual drop off in service over the last couple of years and it seems to only be getting worse.
The other day, I went into the Chipotle in Timonium and there were not many people in front of me in line- maybe 8. Not bad for 6pm. In the BC days (Before Covid), I would have been out of there in a jiffy, but these times are different and our "new normal." It took forever for the line to move, and this was because the person at the register was ringing the check as well as finishing the cheese and salsa section of this operation. The burritos and bowls would pile up, then she would ring a few. After checking a couple more people out, she'd head back to the assembly line and the slow process repeated itself.
When it was my turn to go, of course they had no steak prepped (why would you have steak at 6pm anyway? Preposterous!) Then, after everything was done and the burrito was wrapped, I asked for chips. Of course- no chips. Now I am just sad.
When I looked around at the employees, no one was happy. The people who were there (bless them) were working hard and trying their best, but they were short staffed, quite visibly. There also looked to be a lack of leadership in the store, which seemed to be a problem. This store is probably having a tough time hiring in part because everyone who shows up looks overworked and miserable. A candidate probably sees that and goes "no thanks." This creates a self fulfilling prophecy and feedback loop. It's tough.
Right now we are in an environment where costs are skyrocketing due to inflation and a troubled supply chain, so employers can either raise prices or cut costs. With Chipotle, you can only raise prices so much, so the first thing to go is most likely employee hours. As minimum wage rises year after year, employers will only be more resistant to staffing like the BC days, as it's only getting more expensive to operate a business. More and more automation is only on the horizon for this very reason. For the stores that really want to hire, they can't find good people, and I can't help but ask- "where are people getting money!?" How are people buying groceries and paying utilities when so many businesses look like this one- understaffed, out of product, with slow service and sad faces. There has been a lot of money injected into the American machine in the PC era (post Covid), and while it felt good for a while, it has aided in the changing of people's values, desires, and needs, at least in the short term. America will bounce back, as it always does, but the short term is becoming the medium term, and for goodness sake....I just miss my burrito and chips. #inflation #supplychain
-Your Friends at Red Oak Financial Group