Chipotle May Cut the Avocados
Updated On: Mar 05 2014 09:20:42 PM CST
California scientists predict climate change could greatly reduce avocado production in the future and lovers of guacamole may not find it on the menu at the Chipotle restaurant.
The Chipotle restaurant chain is concerned about the impacts from temperature increases on Earth. The chain uses 35 million pounds of avocados every year. Investors have been told there could be higher prices and even the end of guacamole sales.
In a letter to shareholders, the company says climate change might eventually affect the availability of its key ingredients. Chipotle cited a Lawrence Livermore National Laboratory prediction that hotter temperatures will cause a 40 percent drop in California's avocado production over the next three decades.
For now Chipotle has plenty of guacamole and the popular item remains on the menu.
The company does say any increase in the prices of its critical ingredients such as chicken, beef, cheese, avocados, beans, rice, tomatoes and pork, would impact operating results.
The restaurant chain also says it may choose to temporarily suspend serving menu items, such as guacamole or one or more of its salsas, rather than paying the increased cost for the ingredients.
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