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Will customers pay for a more natural Panera? | MarketWatch

Derrington said that for all of Chipotle’s “food with integrity” and its premium price, that it’s actually fairly reasonable.

“I can get a burrito with chicken for no more than $7. You can’t beat that with a stick,” he said.

Historically, consumers have been told that to get their food organic without the additional artificial flavorings, it would cost them more. Derrington said that as an increasing number of companies go the way of Panera, Chipotle, Tyson and Nestlé, the premium pricing placed on some products will fade.

But on the other hand, if the price is significantly higher, then consumers will sometimes chose savings over quality.

“It really depends on the evolution of this trend. Once we get more production of the good stuff, prices will go down,” Derrington said. “At this point in time, there are consumers who are willing to pay that premium price. But if Panera has to continue to raise prices more, I don’t care if it tastes like gold, they’re going to lose customers.”

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Will customers pay for a more natural Panera?.

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