Chipotle heads south of the border, announcing first restaurant in Mexico despite Trump tariff war
At a time when many fast-casual chains are struggling to get customers in the door, and rethinking their next moves both at home and internationally due to Trump's trade wars, Chipotle Mexican Grill is expanding.
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The fast-casual restaurant announced on Monday that it signed a development agreement with Alsea to open its first location in Mexico early next year. Alsea operates the Latin American and European locations of a number of food and beverage chains, including Starbucks, Domino's Pizza, and Burger King, according to CNBC.
Chipotle also indicated plans to explore 'additional expansion markets in the region,' signaling further locations in Latin America.
'We are confident that our responsibly sourced, classically cooked real food will resonate with guests in Mexico,' Nate Lawton, chief business development officer at Chipotle, said in a statement. 'The country's familiarity with our ingredients and affinity for fresh food make it an attractive growth market for our company.'
The fast-casual chain, which currently operates more than 3,700 restaurants, also reiterated its plans to open between 315 and 345 new restaurants this year, with a long-term target of operating 7,000 locations in the U.S. and Canada. The popular chain opened 304 new restaurants in 2024, its most openings in a single year. (In 2023, it opened 271 locations, and in 2022, 200 restaurants.)
And this is not Chipotle's first foray beyond the U.S. borders. It operates 58 locations in Canada, 20 in the United Kingdom, six in France, and two in Germany. In 2023, it signed its first international development agreement with Alshaya Group to open restaurants in the Middle East; as a result, it now operates three restaurants in Kuwait and two in the United Arab Emirates.
Last year, many beloved U.S. fast-casual and restaurant chains struggled to stay afloat, while many others shut down or filed for bankruptcy. The majority of Wahlburgers locations shut down in January, and fast-casual chain Roti has filed for Chapter 11 bankruptcy protection, as have both Red Lobster and Buca di Beppo.
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