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Chipotle takes Tex-Mex to Mexico in test for global expansion

Chipotle takes Tex-Mex to Mexico in test for global expansion

The US fast-casual chain is opening its first Mexican branch this week, a high-risk move that will test whether Americanised ethnic food can succeed in its country of origin, with implications for its European growth strategy.

Chipotle Mexican Grill will open its first restaurant in Mexico on Thursday, venturing into the country that inspired its cuisine. The outlet will be located in the upmarket neighbourhood of San Pedro Garza García in Monterrey, operated in partnership with the Mexican restaurant operator Alsea.

The move has been met with widespread scepticism locally. "Bold move selling Mexico a corporate version of Mexico," wrote one user on X, while another compared it to "Panda Express opening its first mainland China location." "Yummi mexican food made by gringos … said no one ever!" wrote a user on Facebook.

History suggests the risk is real. Taco Bell attempted to conquer Mexico twice, opening a Monterrey branch in 2007 before abandoning the market entirely in 2010. The philosopher Carlos Monsívais famously likened the effort to "bringing ice to the Arctic." At the time, local office worker Marco Fragoso dismissed Taco Bell's offerings: "They’re not tacos. They’re folded tostadas. They’re very ugly."

For European investors, the Mexican launch is a bellwether for Chipotle's broader international strategy. The chain has more than 4,000 locations worldwide, including restaurants in the UK, France and Germany. Its ability to navigate culturally protective markets is critical, echoing the mixed fortunes of other US food brands in Europe.

Starbucks has been somewhat more successful in Italy, launching its first outlet there in 2018. However, Domino’s Pizza crashed out of Italy in 2022 when its local franchise filed for bankruptcy and closed all 29 restaurants. These examples highlight the friction US chains face when entering markets with deep-rooted culinary traditions.

Chipotle's management frames the Monterrey opening as a carefully controlled experiment. "This first location will serve as an important proof-of-concept, giving us the opportunity to better understand local consumer preferences as we thoughtfully grow in Mexico," said Nate Lawson, the chief business development officer. Chief executive Scott Boatwright stated the company is entering "with deep respect for the country’s culinary heritage."

Yet local analysts remain doubtful about the chain's prospects. "US franchises don’t succeed in Monterrey," said Inés Carrasco, who writes the blog Cronicas de San Pedro. The launch is ultimately a high-stakes bet by Alsea.

"We had been pursuing Chipotle for at least five or six years," said Alsea chief executive Christian Guirría. "I don’t know if we wore them down or won them over, but ultimately, we were very fortunate to secure the franchise for Mexico."

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