The Article "Chipotle's Labor Costs Are Rising. Customers Will See It in Pricing." is from The Wall Street Journal. Please make an analysis of this article including the following:

Your analysis should provide: i. A brief review or condensation of the articles giving the reader the key elements of the article (~1/3 of the posting) and ii. A clear discussion of how you can relate the content of the article to specific elements of the structure-conduct-performance (SCP) paradigm (~2/3 of the posting). Your analysis should cover the most important elements of each of the following for the market/industry covered by the WSJ article (one short paragraph for each): basic conditions, market structure, conduct, performance, and feedback mechanisms. In your explanation, make sure you link the boxes, e.g., how the specific element of market structure affects the market conduct

I have Included The article below:

"Chipotle Mexican Grill is expecting a significant bump in labor costs next year because of a new law in California. For some of the fast-food chain's customers, this means higher menu prices.

Starting in April, minimum wage for fast-food workers in California will increase to $20 an hour, up from the state's current hourly minimum wage of $15.50. The law applies to fast-food chains with at least 60 national locations and will come as the state's minimum wage is set to rise to $16 an hour in January. Chipotle currently pays California workers in the high teens, around $17 to $18 an hour, said Chief Financial Officer Jack Hartung.

The higher wages are poised to hit as Chipotle's labor costs have risen considerably in the past few years, with the competitive market pushing workers' pay up. The Newport Beach, Calif.-based company spent $616.3 million on labor globally for the quarter ended Sept. 30, up around 10.5% from the prior-year period and a more than 50% increase from the same period in 2020. The law in California, where roughly 15% of Chipotle's more than 3,300 restaurants are located, will increase overall labor costs by between 2.5% and 3% next year,according to Hartung.

In California, the CFO said, those costs will rise on average by 15% to 20%. "That's a huge hit," said Hartung, adding that labor is Chipotle's second-highestcost at the restaurant level, behind only food. "Any time you take the second-biggest line item and then you increase it by 20%, it definitely has an impact."

Hartung added, "It's significant enough that it puts a dent in our economics."

To offset the higher costs, Chipotle will raise menu prices in California. The company is still assessing the impact of the law, but Hartung said California menu prices will likely increase in the mid- to high-single-digit range. This would follow a 3% price increase last month, the company's first national price lift in over a year.

The finance chief doesn't currently see a need to pull additional levers in response to the higher minimum wage, such as opening fewer-than-planned new restaurants in California, unless customers resist pricing actions. "But the reality is, every restaurant company in California is probably going to have to take a similar increase, so we will probably still keep our value gap," according to Hartung.

Analysts are watching closely for signals that consumers are pulling back with inflation and interest rates up and pandemic-era savings dwindling. Chipotle's customers so far continue to spend, with the company's comparable restaurant sales, which typically look at transactions in restaurants open for at least 13 full months, increasing by 5% for the quarter ended Sept. 30. Net income rose to $313.2 million in the three-month period, compared with $257.1 million a year earlier, and revenue increased 11.3% to $2.47 billion.

For companies with fast-food workers in California, analysts are looking at how the wage change may hit financials as restaurants including McDonald's and BJ's Restaurants weigh whether menu prices will increase because of the law.

Companies that don't fall within the remit of the law may find it more difficult to hire if they can't meet the hourly $20 wage floor, said Evercore ISI food and restaurant analyst David Palmer. Meanwhile, he said, companies directly affected by the change may feel pressure to lift pay elsewhere in their restaurants.

"They can't have compression of their [hourly workers] to the people who have been there for a while, so everybody's pay has to go up," according to Palmer. But with Chipotle's menu prices tending to fall below its peers, the company is in a "good spot"to raise prices to a level that willoffset higher labor costs, he said.

Chipotle is sensitive to the fact that some consumers' wallets are under pressure, Hartung said, particularly in a key demographic who are facing the resumption of student loan payments. But customers have so far stomached the increased prices, said Hartung, adding that the recent pricing action was relatively modest.

"The average chicken burrito costs $9," he noted, referring to the average price of Chipotle's chicken burrito in the U.S. "So 3% means it's going to be about a quarter more.""