Chipotle Mexican Grill plans to foray into Asia next year by opening restaurants in South Korea and Singapore, as the bowls and burritos maker seeks to expand its global footprint amid easing consumer spending on dining out in key U.S. market.
The California-based company will open the restaurants through a joint venture with South Korea-based food company, SPC Group, it said on Wednesday.
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An exterior view of Chipotle in SoHo in New York City, U.S., Oct. 4, 2024. Photo by Reuters |
“With a rapidly evolving dining-out business, fueled by preferences for variety and convenience, expanding into Asia presents an incredible growth opportunity for Chipotle,” said CEO Scott Boatwright.
In April, Chipotle announced its plans to open restaurants in Mexico for the first time, following last year’s deal with Alshaya Group to expand into the Middle East market via Dubai and Kuwait.
The company lowered its annual sales growth target in July and missed quarterly sales estimates, hurt by fewer restaurant trips in an uncertain economy. U.S. President Donald Trump’s trade tariffs are also set to drive up supply-chain costs.
Chipotle’s existing international portfolio of owned and operated restaurants includes locations in Canada, the U.K., France and Germany.
The company currently operates more than 3,800 restaurants and plans to open between 315 and 345 new outlets this year, with a long-term target of operating 7,000 locations in the U.S. and Canada, it said.
