Why Chipotle Struggles in the UK
Doing some research into the Mexican fast-serve market in the UK, and found it odd that Chipotle $CMG , with over 3,000 stores worldwide have been in the market for over a decade but are not one of the largest competitors. They really only have a presence within London, with the likes of Wahaca, Barburrito, and Tortilla Mexican Grill leading the way.
It would appear that after covid struck, Chiptole's management discovered that their ROI is best earned in domestic markets (the US), after originally thinking that the market was saturated. I also found call additional context on the expert call network on AlphaSense, where I found commentary from a former Real Estate Manager and Former Director at the company.
A former Chipotle Director would talk about the uniformity of the supply chain in North America, from the menu, ingredients, tech, marketing, messaging, and training, stating that “you could walk into one store in Vancouver, Canada, and another in Columbia, South Carolina, and you wouldn't know the difference.” This cost advantage is not present in the UK.
Further context from a former Real Estate Manager at Chipotle suggested that sourcing of non-GMO and naturally raised produce can be a challenge.
What? I thought all of Chipotle's food was non-GMO and naturally raised. This is news to me! As someone who eats Chipotle four times a week, I would love to have Chipotle in the UK to see if there are any taste differences. Not having delivery is a killer. Also, what is the price for a burrito bowl there? It used to be around $10 here but lately it has been over $13.00 if you get guac.
We also don't have Wahaca, Barburrito, or Tortilla Mexican Grill here. At least I never heard of them. Are there models similar to Chipotle?
@investmenttalk This article is from 2013. I guess former directors don't keep up on their company when they leave.