Cost

The national chain Chipotle has announced that they will raise prices 4% to compensate for the higher wages they must pay their employees to get people to work there. The question is will customers be willing to pay a little more if they know that the extra will go toward employee salaries. Something purchased for $5 will cost $5.20. The downside is that large chains may be able to get away with this but what happens to small local business. Products of all types made in America cost more but in general are of higher quality. Most consumers do not have a lot of disposable income so they look to price rather than quality. The shift to buy American will depend on the difference in cost. Twenty cents more at Chipotle will probably not cause a shift in buying habits. In more expensive items like appliances the difference might be several hundred dollars and that will affect buyers.