The Mexican Grill logo by Chipotle can be seen on July 6, 2024 in Manhattan, New York, United States of America.
Beata Zawrzel | Getty pictures
Chipotle Mexican Grill will open its first location in Mexico as the youngest stage in its international expansion at the beginning of next year.
The company announced on Monday that it signed a development contract with Alsea that operates the Latin American and European locations of StarbucksPresent Domino's pizza And Burger KingAmong other chains.
After the first restaurant opened in 2026, Chipotle plans to explore “additional expansion markets in the region”, which could mean a broader Latin American development.
The deal for expansion in Mexico, as President Donald Trump, is burdening a trade war with the country and the relationship between the two neighbors is burdened. Avocados from Mexico were originally exposed to a tariff of 25% until it had new duties on the goods compliant with the US Mexico Canada Agreement. While chipotle has diversified its avocado procurement in recent years, it still imports about half of its avocados from Mexico.
In recent years, Chipotle has tried to expand internationally after decades have concentrated almost exclusively on its US business. The company operates 58 locations in Canada, 20 in Great Britain, six in France and two in Germany. Chipotle currently has three restaurants in Kuwait and two in the United Arab Emirates through a contract with the Alshaya Group.
Chipotle relies on the fact that Mexico's familiarity with its ingredients and the appreciation for fresh food will gain food through consumers, according to Nate Lawton, Chief Business Development Officer from Chipotle.
However, the US interpretations of Mexican food are not always on the market. Yum brands' Taco Bell tried twice to expand to Mexico, but both efforts quickly failed.
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