Chipotle’s Guacamole Is Safe, but Mexico Tariffs Remain a Threat

Chipotle customers fear their beloved guacamole will be a victim of President Donald Trump’s proposed tariffs. The company assured its customers that the product is safe, for now, despite government threats of tariffs on imports from Mexico.

The Mexican chain restaurant has diversified its avocado suppliers in the past several years, not relying on Mexico for all its imports. The company’s CEO Scott Boatwright revealed details surrounding this issue during a fourth-quarter earnings call.

“Our supply chain team has done a remarkable job over the last couple of years with vendor diversification and moving some countries of origin out of Mexico proper. Today, we source from both Colombia, Peru, as well as the Dominican Republic,” Boatwright explained.

“Only about 50% of avocado supply today is coming out of Mexico,” Boatwright continued, noting that this strategy helps mitigate risks if tariffs on key imports go into effect.

CFO Adam Rymer stated, “If the recently announced tariffs go into full effect, it would have an ongoing impact of about 60 basis points on our cost of sales,” which is equal to 0.6 percentage points. Around 2% of Chipotle’s sales come from Mexico, and less than 0.5% from Canada and China combined, Rymer added.

President Trump has reportedly agreed to pause tariffs on Canada and Mexico for 30 days after they pledged to boost border enforcement. Before the pause, two of the United States’ most critical partnerships were on the line.

Chipotle Recently Raised Its Menu Prices by 2%

NBC News reported in December that Chipotle raised its menu prices by 2% as a result of inflation. This was the first price increase in over a year at the popular restaurant chain.

“For the first time in over a year, we have taken a modest price increase of approximately 2% nationally to offset inflation,” Laurie Schalow, Chipotle’s chief corporate affairs officer, said in a statement at the time.

The minimal price increase was seemingly less of an issue with customers than the chain reportedly reducing portion sizes. On TikTok, some customers accused Chipotle of skimping on food portions. They started a trend of filming employees as they built out their burrito bowl orders with chicken, guacamole, and other add-ons to get larger scoops.

Chipotle will likely see an uptick in sales the day after the Super Bowl. This is when the chain highlights its “Extra Sunday” promotion.

On Monday, Feb. 10, Chipotle Rewards members can score a free Guac and Queso Blanco offer with the purchase of any entrée, available exclusively on the company’s app and website with promo code “EXTRA25.” This offer is the first time Chipotle fans can get free Guac and Queso Blanco at the same time.