Chipotle Mexican Grill announced Monday it will open its first restaurant in Mexico by early 2026, partnering with Alsea, which operates brands including Starbucks, Domino’s, Burger King and Chili’s across Latin America and Europe.
For the first time since its founding 32 years ago in Denver, Colorado, Chipotle will expand its operating model into the homeland of the cuisine that inspired its menu, with plans to explore additional markets in the region.
Some are speculating the expansion will begin in Mexico City, since that’s where Alsea is headquartered, but nothing official has been stated.
The fast-casual restaurant is named after the chipotle chili pepper, a smoke-dried version of a ripe jalapeño pepper that Mexico News Daily gave a 3 on the spiciness scale. In the Nahuatl (Aztec) language, chil means “chili pepper” and poctli means “smoked” — and it sure is good in many recipes.
But while Mexicans love chipotle peppers, will they love Chipotle the restaurant?
“We are confident that our responsibly sourced, classically-cooked real food will resonate with guests in Mexico,” Nate Lawton, Chipotle’s chief business development officer, said in a press release. “The country’s familiarity with our ingredients and affinity for fresh food make it an attractive growth market for our company.”
The move comes as U.S.-Mexico trade tensions remain high, with President Donald Trump’s tariffs on Mexican imports impacting supply chains.
Chipotle, which imports about half of its avocados from Mexico, has expanded its sourcing to countries such as Colombia, Peru and the Dominican Republic to mitigate risks, company officials said.
Adam Rymer, a chief financial officer for Chipotle, said 2% of the restaurant’s menu offerings are sourced from Mexico, including avocados, tomatoes, limes and peppers, with less than 0.5% sourced from Canada and China.
“If the recently announced tariffs go into full effect, it would have an ongoing impact of about 60 basis points on our cost of sales,” Rymer said during a Feb. 4 earnings call.
Chipotle currently operates more than 3,700 restaurants worldwide and plans to open between 315 and 345 new locations this year, with a long-term goal of 7,000 in the U.S. and Canada.
Chipotle’s international expansion has accelerated in recent years, with 58 restaurants in Canada, 20 in the United Kingdom, six in France, five in the Middle East and two in Germany.
However, analysts caution that American interpretations of Mexican cuisine have faced challenges in Mexico — as evidenced by two previous failed attempts by Taco Bell to expand into Mexico.
Nonetheless, Chipotle and Alsea are optimistic about the brand’s prospects in Mexico, betting on the appeal of fresh, high-quality ingredients and a strong operational partnership.
“Through this development agreement, we will continue to leverage our vast knowledge of the Mexican consumer and restaurant industry expertise to bring our customers the best food experiences and brands from around the world,” said Armando Torrado, Alsea’s chief executive officer.
With reports from Milenio, El Economista, Reuters and CNBC
