More stories

  • in

    Food Prices Soar, and So Do Companies’ Profits

    Some companies and restaurants have continued to raise prices on consumers even after their own inflation-related costs have been covered.A year ago, a bag of potato chips at the grocery store cost an average of $5.05. These days, that bag costs $6.05. A dozen eggs that could have been picked up for $1.83 now average $2.90. A two-liter bottle of soda that cost $1.78 will now set you back $2.17.Something else is also much higher: corporate profits.In mid-October, PepsiCo, whose prices for its drinks and chips were up 17 percent in the latest quarter from year-earlier levels, reported that its third-quarter profit grew more than 20 percent. Likewise, Coca-Cola reported profit up 14 percent from a year earlier, thanks in large part to price increases. Restaurants keep getting more expensive, too. Chipotle Mexican Grill, which said prices by the end of the year would be nearly 15 percent higher than a year earlier, reported $257.1 million in profit in the latest quarter, up nearly 26 percent from a year earlier.For years, food companies and restaurants generally raised prices in small, incremental steps, worried that big increases would frighten consumers and send them looking for cheaper options. But over the last year, as wages increased and the cost of the raw ingredients used to make treats like cookies, chips, sodas and the materials to package them soared, food companies and restaurants started passing along those expenses to customers.But amid growing concerns that the economy could be headed for a recession, some food companies and restaurants are continuing to raise prices even if their own inflation-driven costs have been covered. Critics say the moves are all about increasing profits, not covering expenses. Coca-Cola, PepsiCo and Chipotle did not respond to requests for comment.“The recent earnings calls have only reinforced the familiar and unwelcome theme that corporations did not need to raise their prices so high on struggling families,” said Kyle Herrig, the president of Accountable.Us, an advocacy organization. “The calls tell us corporations have used inflation, the pandemic and supply chain challenges as an excuse to exaggerate their own costs and then nickel and dime consumers.”So far, food companies and restaurants have been able to raise prices because the majority of consumers, while annoyed that the trip to the grocery store or drive-through for takeout costs more than it did a year ago, have been willing to pay. But there are plenty of shoppers, including those with lower incomes or retirees on fixed budgets, who say the higher prices have led to changes in their routines.Inflation F.A.Q.Card 1 of 5What is inflation? More

  • in

    Chipotle Agrees to Pay Over $20 Million to Settle New York City Workplace Case

    New York City said Tuesday that it had reached a settlement potentially worth more than $20 million with the fast-food chain Chipotle Mexican Grill over violations of worker protection laws, the largest settlement of its kind in the city’s history.The action, affecting about 13,000 workers, sends a message “that we won’t stand by when workers’ rights are violated,” Mayor Eric Adams said in a statement.The city said the settlement covered violations of scheduling and sick leave laws from late November 2017 to late April of this year. Under the settlement, hourly employees of Chipotle in New York City will receive $50 for each week that they worked during that period. Employees who left the company before April 30 will have to file a claim to receive their compensation.The Fair Workweek Law enacted by the city in 2017 requires fast-food employers to provide workers with their schedules at least two weeks in advance or pay a bonus for the shifts.The employers must also give workers at least 11 hours off between shifts on consecutive days or get written consent and pay them an extra $100. And the employers must offer workers more shifts before hiring additional employees, to make it easier for them to earn a sustainable income.Under a separate city law, large employers like Chipotle must provide up to 56 hours of paid sick leave per year.The city accused Chipotle of violating all these policies.“We’re pleased to be able to resolve these issues,” Scott Boatwright, the company’s chief restaurant officer, said in a statement. Mr. Boatwright added that the company had carried out a number of changes to ensure compliance with the law, such as new time-keeping technology, and that Chipotle looked forward to “continuing to promote the goals of predictable scheduling and access to work hours for those who want them.”The city filed an initial legal complaint in the case, involving a handful of Chipotle stores, in September 2019, then expanded the case last year to include locations across the city. At the time, the city said the company owed workers over $150 million for the scheduling violations alone. Advocates for the workers said civil penalties could far exceed that amount.In addition to as much as $20 million in compensation, Chipotle will pay $1 million in civil penalties. A city spokeswoman said the settlement was the fastest way to win relief for workers.The city said in its statement that it had closed more than 220 investigations and obtained nearly $3.4 million in fines and restitution under the scheduling law, and that it had closed more than 2,300 investigations and obtained nearly $17 million in fines and restitution under the sick leave law. Neither figure includes the settlement announced Tuesday.The city spokeswoman said the city had filed more than 135 formal complaints under the two laws, and that many employers settle before the city can file a case.Chipotle faces pressure over its labor practice on other fronts. Local 32BJ of the Service Employees International Union, which helped prompt the investigation at Chipotle by filing initial complaints in the case, is seeking to unionize Chipotle workers in the city.Chipotle employees at stores in Maine and Michigan have filed petitions for union elections. The Maine store has been closed, a move that the employees assert was retaliation for the organizing effort. Chipotle has said the closing was a result of staffing issues and had “nothing to do with union activity.” More

  • in

    Chipotle Closes Maine Store Looking to Unionize, Workers Say

    Workers who filed for a union election at a Chipotle in Augusta, Maine, are accusing the company of seeking to undermine their campaign by closing the restaurant.The company notified employees of the closing on Tuesday morning, hours before the two sides were scheduled to take part in a hearing before the National Labor Relations Board about the possible election.“We have been unable to adequately staff this remote restaurant,” Laurie Schalow, the company’s chief corporate affairs officer, said in a statement. Ms. Schalow added that “because of these ongoing staffing challenges, there is no probability of reopening in the foreseeable future, so we’ve made the decision to permanently close the restaurant.”A lawyer representing the workers filed a charge with the labor board contending that the closing was an illegal act of retaliation.“I’m referring to this as Union Busting 101,” said the lawyer, Jeffrey Neil Young, who frequently represents unions in the state. “It’s a classic response — employees decide to organize and the employer says it’s closing the store.”Read More on Organized Labor in the U.S.Apple: Employees at a Baltimore-area Apple store voted to unionize, making it the first of the company’s 270-plus U.S. stores to do so. The result provides a foothold for a budding movement among Apple retail employees.Starbucks: When a Rhodes scholar joined Starbucks in 2020, none of the company’s 9,000 U.S. locations had a union. She hoped to change that by helping to unionize its stores in Buffalo. Improbably, she and her co-workers have far exceeded their goal.Amazon: A little-known independent union scored a stunning victory at an Amazon warehouse on Staten Island. But unlike at Starbucks, where organizing efforts spread in a matter of weeks, unionizing workers at Amazon has been a longer, messier slog.A Shrinking Movement: Although high-profile unionization efforts have dominated headlines recently, union membership has seen a decades-long decline in the United States.The labor board will investigate the charge and issue a formal complaint if it finds merit in the accusation, at which point the case would go before an administrative law judge. The two sides could reach a settlement beforehand.A handful of workers at the store walked off the job in mid-June to protest what they said were unsafe conditions that stemmed from understaffing and insufficient training.“Not being properly trained to prepare food has a lot of risks to both the preparer and the people eating the food,” said Brandi McNease, a worker involved in the walkout and the union campaign. “You worry about knife skills, using equipment that is dangerous — hot, sharp.”Within a few days, the company closed the store to the public while it sought to improve staffing, including retaining two recruiting experts, according to Ms. Schalow. During this time, workers continued to report to the store, where they received some training and helped clean it, but often for fewer hours a week than they previously worked.On June 22, workers filed a petition to hold a union election. The labor board requires at least 30 percent of workers to indicate their support before it will order one.The hearing scheduled for Tuesday was meant to consider arguments from the two sides about the proposed election. Chipotle had asserted in filings that the election should not go forward, partly because the store was understaffed and so the workers eligible to vote would not be fully representative of its eventual work force.Mr. Young, the lawyer representing the workers, said the closing could chill organizing efforts at other stores in the chain, including those underway in Lansing, Mich., where workers have also filed for a union election, and New York City.“By closing the Augusta store, it’s signaling to Chipotle workers elsewhere who are involved in or contemplating nascent organizational drives that if you organize, you might be out of job,” Mr. Young said.Ms. Schalow, the Chipotle official, said in her statement that closing the store “has nothing to do with union activity.” The company said it had closed 13 locations out of about 3,000 because of staffing issues, performance, lease agreements and other business reasons over the past 18 months. Most of the closings appear to have come in the first half of last year.Chipotle has offered the Augusta workers four weeks of severance pay based on their hours over the past two weeks, which have typically been lower than before the restaurant closed to the public. It has not offered to place the workers at other locations in Maine, the nearest of which is roughly an hour away, according to the company.Ms. McNease said she and her co-workers planned to fight to have the store reopened. “No one is bailing now,” she said.Chipotle is among several employers in the service industry whose workers have sought to unionize over the past year. Roughly 200 corporate-owned Starbucks locations have voted to unionize since last fall, as have workers at an Amazon warehouse on Staten Island, an REI store in Manhattan and an Apple store in Maryland.The labor board has formally accused Starbucks of closing certain stores in retaliation for union organizing. The company has denied the accusations.Last week, Starbucks said it was closing 16 additional stores because of safety concerns like crime, which it said have been reflected in incident reports over the past year. The union representing the newly unionized Starbucks workers has filed charges of unfair labor practices, accusing the company of closing the stores to undermine organizing activity or avoid bargaining with unionized workers. More

  • in

    CPI Inflation Climbed 7.5 Percent in January, the Fastest Rise Since 1982

    Consumer Price Index data showed prices climbing faster than expected, picking up across a broad array of goods and services.

    .dw-chart-subhed {
    line-height: 1;
    margin-bottom: 6px;
    font-family: nyt-franklin;
    color: #121212;
    font-size: 15px;
    font-weight: 700;
    }

    Year-over-year changes in the Consumer Price Index
    Seasonally adjustedSource: Bureau of Labor StatisticsBy The New York TimesA key inflation measure released on Thursday showed that prices are climbing at the fastest pace in 40 years and broadening to touch nearly every corner of the American economy, heightening the risk that they will stay elevated for longer and that policymakers may have to react more aggressively.Markets tumbled after the government released Consumer Price Index data for January, which showed prices jumping 7.5 percent over the year and 0.6 percent over the past month, exceeding forecasts. More worrying were the report’s details, which showed inflation moving beyond pandemic-affected goods and services, a sign that rapid gains could prove longer lasting and harder to shake off.Investors speculated that the hot inflation would spur a decisive reaction from the Federal Reserve — possibly a big interest rate increase at the central bank’s next gathering in March, though few Fed officials have signaled comfort with such a large move. Making money more expensive to borrow and spend could weigh on demand, slowing the economy and tamping down prices.Wall Street is now anticipating that interest rates could rise to more than 1.75 percent by the end of the year, up from near zero now, and the possibility of a more forceful Fed reaction sent a key bond yield above 2 percent for the first time since July 2019 and deflated stock prices.Most economists still believe inflation will cool by year’s end, as automobile prices climb at a more moderate pace and as supply chain problems hopefully ease. But high and widespread price increases portend trouble for a White House that is struggling to convince voters that the economy is strong, and for a Fed that looks increasingly at risk of falling behind the curve.“It was more than expected, and it was broad-based,” said Priya Misra, head of global rates strategy at TD Securities, adding that she now expects price gains to slow less drastically this year. “We’ve gotten used to these big headline numbers, but every aspect of ‘transitory’ you can push back against now.”Economists thought price gains would fade quickly in 2021 — making now-infamous predictions that inflation would prove “transitory” — only to have those projections proved wrong time and again as booming consumer demand for goods collided with roiled global supply chains that could not ramp up production fast enough.High inflation has been a political liability for the White House, as rising prices have eaten away at household paychecks, leaving consumers feeling pessimistic.Amir Hamja for The New York TimesLately, it is more than just shortages of goods at play. Price gains are increasingly hitting consumers in hard-to-avoid ways as they show up in necessities: January’s inflation reading was driven by food, electricity and shelter costs, the Bureau of Labor Statistics said.High and broadening inflation has become a political liability for President Biden, as rising prices eat away at household paychecks and detract from a strong labor market with solid wage growth. That has left consumers feeling pessimistic and has all but killed Mr. Biden’s chance to pass a sweeping climate and social policy bill given lawmaker concerns about rising prices.Understand Inflation in the U.S.Inflation 101: What is inflation, why is it up and whom does it hurt? Our guide explains it all.Your Questions, Answered: We asked readers to send questions about inflation. Top experts and economists weighed in.What’s to Blame: Did the stimulus cause prices to rise? Or did pandemic lockdowns and shortages lead to inflation? A debate is heating up in Washington.Supply Chain’s Role: A key factor in rising inflation is the continuing turmoil in the global supply chain. Here’s how the crisis unfolded.Ryan Sweet, an economist at Moody’s Analytics, estimated that inflation was costing the average household $276 a month, compared with a more normal rate of inflation, which had been hovering just around 2 percent before the pandemic.“While today is a reminder that Americans’ budgets are being stretched in ways that create real stress at the kitchen table, there are also signs that we will make it through this challenge,” Mr. Biden said in a statement. He emphasized that wages grew more quickly than prices last month — though in general they have not kept up with price gains over the past year.The White House has introduced policies that might help to ease inflation slightly — discussing plans to help place military veterans into the short-staffed trucking industry, for instance — but the Fed is primarily in charge of slowing down demand to keep prices under control. Fed officials have already shifted away from trying to foster a quick economic rebound and toward bringing inflation down. After Thursday’s report, investors expected the Fed to withdraw economic support even more quickly. Markets braced for a half-percentage-point increase in the federal funds rate at the central bank’s meeting next month — double the usual increment.The inflation reading sent stocks down and government bond yields up. The S&P 500 dropped 1.8 percent, while the Nasdaq composite fell 2.1 percent. The yield on 10-year U.S. Treasury notes rose 0.1 percentage points, to about 2.03 percent, the highest level since November 2019.James Bullard, the president of the Federal Reserve Bank of St. Louis, fretted about the January inflation report in an interview with Bloomberg News and suggested that policymakers should be open to both a bigger-than-normal rate increase and to increasing rates in between officially scheduled meetings.“You have got the highest inflation in 40 years, and I think we are going to have to be far more nimble and far more reactive to data,” said Mr. Bullard, who has at times espoused bold stances that are not followed by his policymaking colleagues.The Fed generally moves borrowing costs in between meetings only at stressed moments and in emergencies, as was the case when it cut rates to zero between planned gatherings in March 2020.Inflation is abnormally high relative to the central bank’s goal: The Fed aims for 2 percent inflation on average over time, defining that target using a different but related inflation index that is also sharply elevated.And it increasingly appears to be driven less by the pandemic and more by a strong economy. Price increases in 2021 came heavily from roiled supply chains that sent new and used car prices and furniture costs up sharply. Those continue to be a big factor elevating overall inflation, but other areas are also fueling the rapid rise.

    .dw-chart-subhed {
    line-height: 1;
    margin-bottom: 6px;
    font-family: nyt-franklin;
    color: #121212;
    font-size: 15px;
    font-weight: 700;
    }

    Year-over-year changes in the Consumer Price Index
    Not seasonally adjustedSource: Bureau of Labor StatisticsBy The New York TimesRent of a primary residence, which counts for a big chunk of overall inflation and tends to respond more to economic conditions than to one-off trends, climbed 0.5 percent in January from the prior month, a slight acceleration. Other shelter costs rose at a steady but notable pace.“Low vacancies and the end of rent moratoriums are expected to continue to push rents higher in the year ahead,” Diane Swonk, chief economist at Grant Thornton, wrote in a note after the release.As costs for shelter and other services pick up, policymakers are hoping that supply chains will start to catch up. That could allow prices for goods to moderate or even fall — taking pressure off overall inflation.Inflation F.A.Q.Card 1 of 6What is inflation? More

  • in

    Despite Labor Shortages, Workers See Few Gains in Economic Security

    Over the past two months, Brenda Garcia, who works at a Chipotle in Queens, has struggled to land more than 20 hours per week, making it difficult to keep up with her expenses. When she confronts her manager, he vows to try to find her more work, but the problem invariably persists. In one recent week, the store scheduled her for a single 6.25-hour shift.“It’s not enough for me — they’re not giving me a stable job,” said Ms. Garcia, whose work involves chopping vegetables and other tasks before burritos are assembled. “They’re not giving me the hours and the days I’m supposed to be getting.”Ms. Garcia’s limited hours are not unusual at Chipotle, which has a largely part-time work force. A weekly schedule at her store from early January showed at least a dozen workers with fewer than 20 hours and several with fewer than 15.With workers nationwide quitting at high rates and companies complaining that they can’t fill jobs, employers might be expected to rethink their dependence on part-time scheduling. While some employees prefer the flexibility, many say it leaves them with too few hours, too little income or erratic hours.But that rethinking does not appear to have happened. Government data show that in retail businesses, the portion of workers on part-time schedules last year stood about where it was just before the pandemic, and that it increased somewhat in hospitality industries like restaurants and hotels.In a twice-yearly survey by Daniel Schneider, a Harvard sociologist, and Kristen Harknett, a sociologist at the University of California, San Francisco, one-quarter of workers at large retailers and restaurant chains said they were scheduled 35 hours a week or less and wanted more hours. That was down from about one-third in 2019, but the change was driven by a decline in the number of workers wanting more hours, most likely because of pandemic health risks and work-life conflicts, not because employers were providing more hours.Even as employers complain of having to scramble to fill vacancies, there is little evidence that service workers are winning any meaningful, long-term gains. While businesses have raised wages, those increases can be easily eroded by inflation, if they haven’t been already. The overall national rate of membership in unions — which can obtain wage increases for workers even absent labor shortages — matched its lowest level on record last year.Limited work hours are not unusual at Chipotle, which has a largely part-time work force.Brandon Bell/Getty ImagesAnd the unpredictable schedules that arise when employers constantly adjust staffing in response to customer demand, something that is common among part-timers, are roughly as prevalent as before the pandemic. The survey by Dr. Schneider and Dr. Harknett found that about two-thirds of workers continue to receive less than two weeks’ notice of their schedules.“Companies are doing all they can not to bake in any gains that are difficult to claw back,” Dr. Schneider said. “Workers’ labor market power is so far not yielding durable dividends.”The changes that make work lower paying, less stable and generally more precarious date back to the 1960s and ’70s, when the labor market evolved in two key ways. First, companies began pushing more work outside the firm — relying increasingly on contractors, temps and franchisees, a practice known as “fissuring.”Second, many businesses that continued to employ workers directly began hiring them to part-time positions, rather than full-time roles, particularly in the retail and hospitality industries.According to the scholars Chris Tilly of the University of California, Los Angeles, and Françoise Carré of the University of Massachusetts Boston, the initial impetus for the shift to part-time work was the mass entry of women into the work force, including many who preferred part-time positions so they could be home when children returned from school.Before long, however, employers saw an advantage in hiring part-timers and deliberately added more. “A light bulb went on one day,” Dr. Tilly said. “‘If we’re expanding part-time schedules, we don’t have to offer benefits, we can offer a lower wage rate.’”By the late 1980s, employers had begun using scheduling software to forecast customer demand and staffed accordingly. Having a large portion of part-time workers, who could be given more hours when stores got busy and fewer hours when business slowed, helped enable this practice, known as just-in-time scheduling.But the arrangement subjected workers to fluctuating schedules and unreliable hours, disrupting their personal lives, their sleep, even their children’s brain development.Nonetheless, the model continued to spread, and the shift to a heavily part-time work force was largely complete across retail by the mid-1990s.A recent study commissioned by Kroger found that about 70 percent of the supermarket company’s nearly 85,000 store employees in California, Colorado, Oregon and Washington State were part time. A survey of more than 10,000 Kroger workers on behalf of four union locals by the Economic Roundtable, a nonprofit research group, found widespread evidence of just-in-time scheduling, with more than half of workers reporting that their schedules changed at least weekly.Kroger, one of the nation’s largest employers, said in a statement that many of its employees sought part-time jobs for their flexibility and for health care benefits that competitors didn’t offer, as well as for opportunities for upward mobility. “We provide hundreds of thousands of people with first jobs (think baggers, cashiers, stockers, etc.), second chances, retirement employment, college gigs,” the statement said.The company added that locals of the United Food and Commercial Workers union had negotiated and agreed to the relevant provisions of its labor contracts for decades.A spokeswoman for Chipotle, where Service Employees International Union Local 32BJ is helping workers organize, likewise said that managers and employees mutually agreed on hours and that the company enabled employees to pick up additional shifts at other New York City stores when they were available.But the practices remain contentious. In mid-January, more than 8,000 Denver-area workers at King Soopers, a supermarket chain owned by Kroger, went on strike, citing the lack of full-time employment as a key issue.Workers picketing during a strike at King Soopers in Denver. A key issue was the lack of full-time employment.Michael Ciaglo/Getty ImagesRenae Vigil, who works in the meat department at a King Soopers in Denver and serves as a union steward, said many of her colleagues would like to work full time so that “they wouldn’t be worried about how to pay bills, how to get this or that paid, but at King’s, it’s like winning a lotto.”The frustrations suggest a relatively straightforward way for employers to reduce labor shortages: Offer more full-time positions.But Kim Cordova, president of U.F.C.W. Local 7, which represents the King Soopers workers, said employers like Kroger were rarely moved by this logic. “They’ve told us they think the market is going to correct itself, this is temporary and they don’t want to lock themselves into changing permanently,” she said. The food workers union estimated that King Soopers had 2,400 unfilled Denver-area jobs early this year.While the strike ended last month, after the company committed to raise pay, contribute more to health benefits and add at least 500 full-time positions, a majority of King Soopers workers are likely to remain on part-time schedules. Most retail and restaurant workers, who lack a union to organize a strike and provide strike pay, may have a harder time winning such changes.Susan Lambert, a social work scholar at the University of Chicago who studies employers’ scheduling practices, said she and a colleague had recently interviewed store managers in Seattle and Chicago and found that some had, in fact, sought to provide more consistent schedules during the pandemic.The change was driven by a combination of data, showing that more humane scheduling practices need not undermine profitability, and a desire by some employers to retain workers amid labor shortages, Dr. Lambert said. But she conceded that the changes were mostly at the margins.“There are not major investments in changing major systems,” she said.Data collected by the Labor Department indicate that the amount of part-time work in the retail and hospitality industries remains far above where it stood in the early 1970s. The same appears to be true of companies’ reliance on contractors and temps, which scholars say has helped weaken wage growth over the past several decades.Employers who outsource work to contractors or temps do not appear to have rethought those arrangements as a result of the pandemic, said Susan Houseman, a labor economist at the W.E. Upjohn Institute for Employment Research. She pointed to the temporary help industry’s return to close to its prepandemic share of employment and an increase in self-employment during the past two years.Gig companies whose apps allow people to find work as independent contractors say they have had an increase in workers over the last year or two. According to Uber, the number of drivers and couriers working through its service in a given month grew roughly 70 percent from January to October last year, or nearly 640,000.DoorDash said the number of people working through its delivery app as of the fall quarter had more than doubled during the pandemic, to over three million, and Instacart said the number of full-service shoppers on its service — those who shop for and deliver groceries — had increased by more than two and a half times, to over 500,000.The companies say that workers who use their apps value the flexibility of gig work, and that it helps sustain people during fallow periods or in places where work can be hard to find, such as rural communities. But gig jobs typically lack a variety of benefits and protections, like a minimum wage, and can reinforce economic insecurity.To Dr. Schneider, the Harvard sociologist, the insecurity that service workers continue to face during the pandemic, supposedly a period of unusual leverage, shows how resistant their industries are to changing.“I think it exposes something about how attached employers are to this just-in-time model,” he said. “This is something that goes to the heart of their business models.” More

  • in

    Inflation Hits the Fast Food Counter

    On a chilly Tuesday afternoon this month, James Marsh stopped by a Chipotle near his suburban Chicago home to grab something to eat.It had been a while since Mr. Marsh had been to Chipotle — he estimated he goes five times a year — and he stopped cold when he saw the prices.“I had been getting my usual, a steak burrito, which had been maybe in the mid-$8 range,” said Mr. Marsh, who trades stock options at his home in Hinsdale, Ill. “Now it was more than $9.”He walked out.“I figured I’d find something at home,” he said.The pandemic has led to price spikes in everything from pizza slices in Manhattan to sides of beef in Colorado. And it has led to more expensive items on the menus at fast-food chains, traditionally establishments where people are used to grabbing a quick bite that doesn’t hurt their wallet.At a Chipotle in Costa Mesa, Calif., the price of a chicken burrito — nothing fancy, hold the guacamole — about a year ago was $7.25. These days, that same burrito costs around $7.95, according to price data collected by analysts. In Ann Arbor, Mich., a ShackBurger at Shake Shack used to cost $5.69; now it’s $6.09. And in Oklahoma City, an order of 50 bone-in wings from Wingstop that cost $41.99 early last year is now $47.49, a 13 percent increase.Last year, the price of menu items at fast-food restaurants rose 8 percent, its biggest jump in more than 20 years, according to government data. And, in some cases, portions have shrunk.In Ann Arbor, Mich., a ShackBurger at Shake Shack used to cost $5.69; now it’s $6.09.Amy Lombard for The New York Times“In recent years, most fast-food restaurants had, maybe, raised prices in the low single digits each year,” said Matthew Goodman, an analyst at M Science, an alternative data research and analytics firm. “What we’ve seen over the last six-plus months are restaurants being aggressive in pushing through prices.”This comes at a time when the hypercompetitive fast-food market is booming.Chains like McDonald’s, Chipotle and Wingstop were big winners of the pandemic as consumers, stuck at home working and tired of cooking multiple meals for their families, increasingly turned to them for convenient solutions. But in the past year, as the cost of ingredients rose and the average hourly wage increased 16 percent to $16.10 in November from a year earlier, according to government data, restaurants began to quietly bump up prices.But making customers pay more for a burger or a burrito is a tricky art. For many restaurants, it involves complex algorithms and test markets. They need to walk a fine line between raising prices enough to cover expenses while not scaring away customers. Moreover, there isn’t a one-size-fits-all approach. Chains that are operated by franchisees typically allow individual owners to decide pricing. And national chains, like Chipotle and Shake Shack, charge different prices in various parts of the country.When Carrols Restaurant Group, which operates more than 1,000 Burger Kings, raised prices in the second half of last year, the number of customers actually improved from the third to the fourth quarter. “Over time, we generally have not seen a whole lot of pushback from consumers” on the higher prices, Carrols’ chief executive, Daniel T. Accordino, told analysts at a conference in early January.Menu prices are likely to continue to climb this year. Many restaurants say they are still paying higher wages to attract employees and expect food prices to rise.“We expect unprecedented increases in our food basket costs versus 2021,” Ritch Allison, the chief executive of Domino’s Pizza, told Wall Street analysts at a conference this month. While Domino’s hasn’t raised prices, it is altering its promotions — offering the $7.99 pizza deal only to customers ordering online and shrinking the number of chicken wings in certain promotions to eight from 10 — in an effort to maintain profit margins.In Oklahoma City, a bucket of 50 bone-in wings from Wingstop that cost $41.99 early last year is now $47.49.Amy Lombard for The New York TimesDespite the higher food and labor costs, some restaurants are seeing sales and profits rebound past prepandemic levels.When McDonald’s reports earnings this month, Wall Street analysts expect that its revenues will have hit a five-year high of more than $23 billion, a $2 billion increase from 2019. Net income is predicted to top $7 billion, up from $6 billion in 2019. Other chains like Cracker Barrel and Darden Restaurants, which owns Olive Garden and Longhorn Steakhouse, have resumed dividend payments or cash buybacks of stock after suspending those activities early in the pandemic to conserve cash.And next month, when Chipotle reports results for 2021, analysts expect revenues to top $7.5 billion, a 34 percent jump from 2019. Net income is expected to almost double from prepandemic levels. In the third quarter, the company repurchased nearly $100 million of its stock. Chipotle declined to make an executive available for an interview, citing the quiet period ahead of its earnings release.While Chipotle executives blamed higher labor costs for a 4 percent price increase in menu items this summer, the company has been looking for ways to boost its profitability.One way was to charge higher prices for delivery. Delivery orders through vendors like DoorDash and Uber Eats exploded for Chipotle and other fast-food chains during the pandemic. But so did the commission fees that Chipotle paid the vendors. So in the fall of 2020, it began running tests to see what would happen if it raised the prices of burritos and guacamole and chips that customers ordered for delivery, executives told Wall Street analysts in an earnings call. It essentially meant the customer covered Chipotle’s side of the delivery costs.The company discovered customers were willing to pay for the convenience of delivery. Now, customers ordering Chipotle for delivery pay about 21 percent more than if they had ordered and picked the food up in the stores, according to an analysis by Jeff Farmer, an analyst at Gordon Haskett Research Advisors.At a Chipotle in Costa Mesa, Calif., the price of a chicken burrito about a year ago was $7.25. Now it costs $7.95.Amy Lombard for The New York Times“I would say that our ultimate goal, so this would be over the long term, maybe the medium term, is to fully protect our margins,” said Jack Hartung, the chief financial officer of Chipotle, on a call with Wall Street analysts last fall. “When you look at our pricing versus other restaurant companies’ for the quality of the food, the quantity of the food, and the quality and convenience of the experience, we offer great value. So we believe we have room to fully protect the margin.”That doesn’t mean customers are thrilled about the extra costs.This month, Jacob Herlin, a data scientist in Lakewood, Colo., placed an order: a steak-and-guacamole burrito for $11.95, a Coca-Cola for $3, and chips and guacamole, which were free with a birthday coupon. The total was $14.95, before tax.But when he clicked to have the food delivered, the price for the burrito jumped to $14.45 and the soda climbed to $3.65, bringing the total to $18.10 before tax, 21 percent more than if he had picked the food up himself.There was more. Mr. Herlin was charged a delivery fee of $1 and another “service fee” of $2.32, bringing the total for the delivered meal to $23.20. He tipped the driver an additional $3.Mr. Herlin said he did not mind paying for delivery and wanted drivers to be paid a decent wage. But he felt that Chipotle wasn’t being upfront with customers about the added costs.“They’re basically hiding the fees two different ways, through that base price increase and through the hidden ‘service fee,’” Mr. Herlin said in an email. “I would very much prefer if they had the same pricing and were just honest about a $5 delivery fee.” More