Dive Brief:
- Chipotle has opened its 4,000th restaurant in Manhattan, Kansas, the company said in a Friday press release.
- The chain is now more than halfway to its goal of operating 7,000 restaurants in the U.S. and Canada.
- The company said it will have opened between 315 and 345 new restaurants in 2025, of which 80% contain a Chipotlane mobile order pickup window. It expects another 350 to 370 units open next year, including 10 to 15 international partner-operated locations.
Dive Insight:
The new restaurant in Kansas features Chipotle's high-efficiency equipment package that contains a three-pan rice cooker, dual-sided plancha, high-capacity fryer and produce slicer, all meant to improve consistency, quality and efficiency in the back-of-house. This equipment allows staff to be more effective during peak hours and simplifies cooking processes while maintaining the chain’s culinary standards, the press release said.
Restaurant staff using the high-efficiency equipment package have said they are able to prep foods more efficiently and food cooks in less time on the plancha, CEO Scott Boatwright said during the company’s October earnings call. Restaurants with the new equipment are also seeing higher guest satisfaction scores, increased savings and labor efficiency, Boatwright said. The chain expects to add this equipment package across the country within about three years.
The company has been accelerating its new store openings as well, with nearly one unit opening every day. Comparatively, the company opened 140 units in 2019. In addition to strong domestic growth, the chain is now gaining momentum in international markets and signed several large deals in recent quarters to open in Mexico and South Korea. It currently has over 100 restaurants open outside of the U.S., including 75 in Canada, 28 in Europe and 11 partner-owned locations in the Middle East.
Despite the positive annual unit growth, the chain is struggling with sluggish same-store sales, posting a meager 0.3% increase during the third quarter after two quarters of declines. Boatwright said consumer headwinds, particularly those seen among the 25- to 35-year-old cohort, have led to pullbacks in consumer spending. This younger age group is facing unemployment, increased student loan repayments and slow real wage growth, he added. The company is working to better market its value proposition, and Boatwright said its pricing is about 20% to 30% below its peers.
