Following Openings in the Middle East, Chipotle Looks to Continue Plans for Global Growth

Chipotle is increasing its strategy for international growth with recent openings in the Middle East and plans for further expansion into Western Europe and beyond.

The fast-casual Mexican chain signed its first-ever development agreement with international franchise retail operator Alshaya Group in 2023 to bring the brand to the Middle East. It opened its first restaurants in Kuwait in April and in Dubai in October, and will add more locations across the region in coming years.

“This is further strengthening our confidence that Chipotle’s responsibly sourced, classically cooked, real ingredients, resonates across geographies,” said Chipotle interim CEO Scott Boatwright. “We are targeting to open a second restaurant in Dubai early next year and plan to accelerate growth with Alshaya Group in 2025.”

Boatwright said in an interview with Nation’s Restaurant News that Chipotle has quickly become one of the top performing brands in Alshaya’s extensive portfolio that includes retail, pharmacy, optics, hotels, leisure, and entertainment brands. Chipotle will look at other partners around the globe for potential partnerships in areas such as Latin America, the Asia-Pacific region, or elsewhere.

In recent years, Chipotle has increased up its global presence in Canada and Europe. It has taken a methodical approach and currently has more than 40 locations in Canada, about 20 in the U.K., six in France, and two in Germany. However, the company recently promoted Anat Davidzon to managing director of international after serving as managing director of Canada for about six years with the hopes of accelerating that growth.

“(Davidzon’s) done an amazing job in (Canada) getting margins comparable to U.S. margins and we’re growing 25-35 percent in that country today,” Boatwright said. “The reason we put Anat in Western Europe is to look for a similar outcome and she's already making incredible progress. We know we could have hundreds of restaurants in the markets in which we operate today and potentially thousands in Western Europe over time.”

Prior to opening its first store in Kuwait, Chipotle hadn't entered a new country in 10 years. It also hasn't expanded extensively in the three European countries where it operates. However, the company said that it's going to speed up openings both in North America and internationally.

“This brand has had extraordinary success here in North America. We have our sites clearly aligned on 7,000 restaurants, but I also want to give an eye towards how do we continue to push Chipotle to be more of an iconic global brand?” said Boatwright. “That's what you'll see probably in the coming years and coming months.”

The full article about Chipotle’s plans for international expansion can be found HERE.