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In an unprecedented move, Chipotle Mexican Grill will debut in the Middle East through a franchise partnership with Kuwait's Alshaya Group. Set to launch in early 2024, this partnership marks Chipotle's first-ever franchise deal, significantly accelerating its global expansion efforts.
The Alshaya Group is said to be Chipotle's first-ever franchise partner, and this agreement just scaled up the restaurant chain's global expansion efforts. Initially, the Kuwait-based franchisee will launch new Chipotle stores in Kuwait and Dubai in early 2024 then it will slowly build more restaurants to expand further in the Middle East.
The fast-casual chain specializing in quesadillas, burritos, tacos, and salads has more than 50 branches across Europe and Canada. All of these locations are owned and operated by the company. This is the same with its 3,200 restaurants in the United States, so its contract with Alshaya marks the first time it has agreed to a franchise deal with a local operator.
The company made this move for its ambitions to infiltrate more new markets. It is also hoped that this strategy will work to strengthen its presence in more regions outside of the U.S.
In his interview with CNBC, Chipotle's chief executive officer, Brian Niccol, said the first two Chipotle stores in the Middle East will commence the brand's business there. It was noted that its partner, the Alshaya Group, also works with other major American F&B companies such as Starbucks, Texas Roadhouse, and Shake Shack.
Meanwhile, in a separate press release, Niccol further said, "Leveraging Alshaya's market expertise will enable us to quickly gain access to these vibrant economies. We are excited to offer guests in the Middle East our responsibly sourced, classically-cooked real food, and look forward to furthering our purpose to cultivate a better world in this new territory."
Alshaya Group's executive chairman Mohammed Alshaya added, "In announcing this exclusive partnership across the Middle East, we are proud to be Chipotle's first and only franchise partner, as we continue to enhance our portfolio by bringing world-leading brands to our customers across our markets."
Photo by: Chipotle Press Release
