Chipotle signs first-ever franchise partner to open locations in the Middle East

Chipotle announced Tuesday it has signed an statement with Kuwait-based Alshaya Group, its first-ever franchise partner, to unfastened locations successful the Middle East adjacent year.

Chipotle presently has conscionable implicit 50 locations successful Canada and Europe. All are institution owned and operated, arsenic are its astir 3,200 U.S. locations. The Alshaya statement marks the archetypal clip Chipotle has enlisted a section franchise retail relation arsenic it moves into a caller market.

Chipotle CEO Brian Niccol told CNBC successful an interrogation that the archetypal program calls for 2 locations each successful Dubai and Kuwait, with nonstop locations yet to beryllium determined.

The Alshaya Group, which works with different large brands including Starbucks, Shake Shack and Texas Roadhouse, was the close acceptable for the woody fixed its proven marketplace acquisition and committedness to Chipotle's "Food with Integrity" proposition, Niccol said.

Keeping ingredients caller and real, with section paper tweaks that echo the U.S. acquisition volition beryllium key, helium added.

"They've got large brands, large operations, large radical programs, which conscionable gave america assurance that they'd beryllium capable to execute the Chipotle proposition efficaciously successful the Middle East," Niccol said.

In evaluating the Middle East market, Niccol said it was important to spouse up to guarantee occurrence successful everything from existent property to hiring to proviso chain.

Niccol said if the archetypal fewer Middle East locations are successful, determination volition hopefully beryllium hundreds much successful the portion down the line. He added the statement could service arsenic a caller exemplary arsenic the institution looks to different markets.

"As we look astir the world, we'll beryllium evaluating each the elements of what makes Chipotle large and if there's an country wherever we judge we request a partner, past we'll see a spouse for it," Niccol said.

While the marque has enlisted a franchise spouse successful this circumstantial enlargement journey, don't expect the franchising accidental to originate successful the U.S. Niccol said determination is "no intention" to prosecute that way close now.

"Our instrumentality connected invested superior successful the U.S. is industry-leading," helium said. "We've got the equilibrium expanse and superior disposable wherever we tin grip the maturation with our ain superior capability, and I deliberation we've demonstrated the quality to run restaurants effectively."

Chipotle banal is up implicit 50% successful 2023 and is 1 of the champion performers successful the edifice sector.