Chipotle's International Expansion Strategy
Chipotle’s currently has 2010 stores, with 11 stores in Canada, 4 in France, 3 in Germany and 7 in United Kingdom in 2015. Compared to its closest rival Taco Bell, Chipotle has relatively low brand recognition and fewer locations globally (Table 1). Taco bell has implemented an international expansion strategy with 350 international locations in more than 20 countries. Another major competitor, Qdoba Mexican Grill, has begun to expand internationally with locations in the District of Columbia and Canada. International expansion is a key success factor for companies in the fast-food industry. As the market leader in the fast-casual sector, creating a positive global brand image is essential for Chipotle to increase future profitability. There are a lot of markets that Chipotle has not entered, such as
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Chipotle opened its first European restaurant in London in 2010. Since then, Chipotle has expanding its footprint into new geographic markets targeting different international locations, such as Canada, Germany, France and the United Kingdom. Chipotle is still in the early stages of expanding outside of U.S. and plans to expand its global presence into untapped, highly profitable countries in next three years. According to IBIS report, the global fast food industry is projected to reach nearly $670 billion in next five years driven by increasing demand from emerging economies, such as Asia, India, and South America. These high GDP countries combined with an immense growth of population and increasing disposable incomes bring lots of growth potential for the company. As the pace of globalization has increased dramatically in recent years, food and cultures have spread throughout the world. Chipotle can increase its competitive advantage by entering into international markets which other competitors in the Mexican-style fast casual sector have not yet
Chipotle opened its first European restaurant in London in 2010. Since then, Chipotle has expanding its footprint into new geographic markets targeting different international locations, such as Canada, Germany, France and the United Kingdom. Chipotle is still in the early stages of expanding outside of U.S. and plans to expand its global presence into untapped, highly profitable countries in next three years. According to IBIS report, the global fast food industry is projected to reach nearly $670 billion in next five years driven by increasing demand from emerging economies, such as Asia, India, and South America. These high GDP countries combined with an immense growth of population and increasing disposable incomes bring lots of growth potential for the company. As the pace of globalization has increased dramatically in recent years, food and cultures have spread throughout the world. Chipotle can increase its competitive advantage by entering into international markets which other competitors in the Mexican-style fast casual sector have not yet