Chipotle Mexican Grill has announced plans to launch its first restaurant in Mexico early next year, marking a significant step in the company’s international growth strategy.
The announcement was made on Monday, detailing a development agreement with Alsea, a firm operating various well-known brands in Latin America and Europe, including Starbucks, Domino’s Pizza, and Burger King.
Following the initial opening, set for 2026, Chipotle plans to investigate further expansion opportunities across the region, hinting at the potential for broader development throughout Latin America.
This move comes amid ongoing trade tensions between the United States and Mexico, particularly as President Donald Trump has imposed tariffs that have impacted various goods, including avocados. Initially, avocados from Mexico faced a hefty 25% tariff, which was later suspended for compliant products under the United States-Mexico-Canada Agreement. Although Chipotle has diversified its avocado supply sources in recent years, approximately half of its avocados still come from Mexico.
Historically, Chipotle has focused primarily on the U.S. market, but it has recently shifted towards international expansion. The company currently operates 58 locations in Canada, 20 in the United Kingdom, six in France, and two in Germany. Additionally, through a partnership with Alshaya Group, Chipotle has three restaurants in Kuwait and two in the United Arab Emirates.
According to Nate Lawton, Chipotle’s chief business development officer, the company is optimistic that Mexico’s familiarity with its ingredients and a strong preference for fresh food will attract local customers.
However, precedents exist for the cautious approach; Yum Brands’ Taco Bell’s two attempts to enter the Mexican market ended in rapid failure, highlighting the potential challenges ahead for Chipotle.
