Chipotle Mexican Grill Opens First Restaurant in Mexico

Latin America Correspondent Jon Bonfiglio with the controversial news of the fact that Chipotle Mexican Grill is officially opening its very first restaurant in Mexico.

Transcript

Jon Bonfiglio 0:00

Uh-oh. Chipotle Mexican Grill is about to open its first restaurant in Mexico this week in an attempt to sell a corporate international version of its food back to the Mexican people. Response has been well muted. We are entering Mexico, said Chipotle boss Scott Bowright. With deep respect, he continued for the country's culinary heritage and a commitment to delivering the Chipotle experience with excellence. We look forward to serving new guests and earning a place in Mexico's vibrant dining culture. Unquote. The new restaurant, one to start off with, is going to be located near the Texas border and what is being seen as a test for future expansion. The chain has in excess of 4,000 outlets worldwide, but none in Mexico to date. They're not alone as many U.S. chain restaurants just don't exist in what might be termed their culinary home country. Domino's Pizza, for example, no longer exists in Italy. Failed experiment, and Taco Bell has no outlets in Mexico. Famously, it tried, Taco Bell tried, to establish itself in the country on two separate occasions, failing both times. It's not been seen here since 2010. It's a story which actually interestingly has been covered everywhere on CNBC, the BBC, Bloomberg, and even the Financial Times, in large part, I think, because the perception is that if Chipotle succeeds, then it opens up new territories for certain national brand restaurants, which are believed to have already saturated their market. There are already plans for it to move into Mexico City in 2027. Public opinion has reacted with, let's say, intense debate. Many Mexican locals have taken to social media to point out that Chipotle is actually Tex-Mex or CalMex, Californian Mexican cuisine, not real Mexican food. And there is also discussion about high expected prices, as converting the US pricing structure to pesos will mean that a meal will likely cost significantly more than local options. Maybe, though, that's the point. When, for example, the advice goes selling togas in Rome, the idea is that you're actually selling a status symbol, not everyday clothing. And so selling them at a premium is maybe the way to go, after all. Still, for Chipotle, it's a bold, bold move.