Dive Brief:
- Chipotle Mexican Grill will open its first restaurants in East and Southeast Asia next year in partnership with SPC Group, a South Korean food company, according to a Wednesday press release.
- The fast casual giant will begin its expansion in the region with stores in Singapore and South Korea.
- Chipotle began expanding through international partnerships in 2023, and has units open in the United Arab Emirates and Kuwait. The chain recently signed an agreement with Alsea to bring its restaurants to Mexico. Those agreements supplement company-operated units in Canada, the United Kingdom, France and Germany.
Dive Insight:
Chipotle said its brand interactions with Korean pop groups and tourism in the U.S. have helped create the brand awareness necessary for entry to Asia.
“Real food prepared fast is in high demand in these markets and with notable brand awareness among consumers, we see potential for strong adoption out of the gate,” CEO Scott Boatwright said in a statement.
SPC has introduced a wide array of American brands to South Korea, including Baskin Robbins, Dunkin’, and Shake Shack, according to the press release.
Heesoo Hur, executive vice president and owner of SPC Group, said Singapore and South Korea are primed for Chipotle’s arrival.
“Given the familiarity of this iconic brand among Koreans and Singaporeans, and their passion for exceptional culinary experiences, these two markets are ideal entry points for Chipotle in Asia,” Hur said.
International expansion has helped a number of major U.S. brands fortify themselves against sales trouble in North America, with KFC and Pizza Hut’s international strength helping to offset their weakness at home. Chipotle has struggled to generate same-store sales growth this year, and international expansion could, in the long run, help it protect its bottom line from localized economic uncertainty.
South Korea, additionally, is often at the forefront of international culinary trends, and brands from that country, like Bonchon, have made the leap to successful growth in the U.S. in recent years.
