Chipotle Heads to Mexico

Chipotle Mexican Grille (Newport Beach, Calif.) has unveiled plans for its first restaurants in Mexico. The chain is partnering with Mexico City-based Alsea S.A.B. de C.V. to open its first eatery at an as-yet-undisclosed location in the country by early 2026, with others to come after that.

The chain is betting that Mexico’s familiarity with its ingredients and appreciation for fresh food will win over consumers, said Nate Lawton, Chipotle’s Chief Business Development Officer. But in its coverage of the news, CNBC reported that “U.S. interpretations of Mexican food don’t always resonate in the market; Yum Brands’ Taco Bell has twice attempted to expand into Mexico, but both efforts failed quickly.”

CNBC also noted Chipotle’s deal to expand in Mexico comes as President Donald Trump wages a trade war with the country (and numerous others). Avocados from Mexico were originally subject to a 25% tariff until he paused new duties on goods compliant with the United States-Mexico-Canada Agreement. While Chipotle has diversified its avocado sourcing in recent years, it still imports about half of its avocados from Mexico, the news source notes.

In any event, the move into Mexico is the latest in a series of overseas forays by Chipotle. Its first international development agreement dates to July 2023 with Alshaya Group, which resulted in the opening of restaurants in Kuwait and the United Arab Emirates. Chipotle’s existing international portfolio of owned and operated restaurants includes 58 locations in Canada; 20 in the United Kingdom; six locations in France; and two in Germany.

Overall, the company currently operates over 3700 restaurants and plans to open between 315 and 345 new restaurants this year, with a long-term target of operating 7000 locations in the U.S. and Canada.