00:00Chipotle has become one of America's favorite fast, casual restaurants, and the company is looking to bring its brand to
00:05even more international markets.
00:07Joining us to tell us all about it is Nate Lawton, Chief Business Development Officer at Chipotle.
00:12Nate, thank you so much for joining us today.
00:14Awesome. Great to be here, Arnold. Thanks for having me.
00:16What is driving Chipotle's push to expand into more international markets right now?
00:22Absolutely. Well, as a part of our recipe for growth strategy, we've declared we want to create a global, iconic
00:28brand with Chipotle.
00:30And we see a lot of awareness and affinity for our brand and our culinary around the world.
00:36And we're starting to take the opportunity to introduce the brand to new markets, including our latest launches in Korea,
00:44as well as Mexico, as well as the expansion we currently have ongoing in the Middle East.
00:49Why are those locations right for market for Chipotle's first restaurant like South Korea and Seoul?
00:58Absolutely. So we're super excited to be in South Korea.
01:03First and foremost, it's certainly a market that's leading culture, a combination of in fashion and beauty and certainly in
01:11culinary.
01:12So it's a great market for Chipotle to be a part of the out of home eating market in South
01:19Korea and especially in Seoul is big and it's growing.
01:22There's high awareness and affinity for our brand and our culinary.
01:28And so we see a great opportunity as we've just launched here in the last few weeks to begin learning
01:33on guest response to bringing Chipotle to Seoul, to introducing them to our culinary.
01:39And the response so far has been outstanding.
01:42Yeah. Is there anything that you've learned, anything new from the early response to Chipotle's Seoul location?
01:49Yes. So we have, you know, a lot of learning early on.
01:52First and foremost, the research that we had done that suggested people were aware and excited to see Chipotle has
01:58certainly shown up.
02:00I was there for the opening a few weeks ago and our first guest showed up about 13 hours before
02:07we opened and the lines prior to opening were, you know, around the block.
02:12So first and foremost, we were super excited to see so many guests show up and confirm that people were
02:18excited to have Chipotle coming to the market.
02:21The second is the response to the culinary has been outstanding.
02:25And so our teams there have done a fantastic job sourcing and preparing fresh ingredients.
02:31And it tastes, you know, exactly like it does here in the U.S., which is exactly what guests were
02:35looking for.
02:36So we've been super excited to learn on the receptivity to the culinary.
02:40We have a lot of opportunity to continue to keep learning.
02:44The lines continue to be long and we're trying to move guests through, you know, at the same throughput rates
02:50that we have here in the U.S.
02:52And the team's been doing a great job building that, building that capability.
02:56We're going to start to introduce new access points.
02:59So our app's going to be launching here shortly, which will give, you know, guests different ways to order and
03:04experience Chipotle.
03:06How do you adopt the Chipotle experience to local tastes while also staying true to the brand?
03:13No, absolutely.
03:14I mean, maintaining our standards is one of the most critical things that we do when we enter a new
03:18market.
03:18And our strategy is very clear.
03:21We want to make sure that when we introduce Chipotle into a new market, it looks, feels, smells, tastes exactly
03:30like the Chipotle experience guests have here in the U.S.
03:33And so that's actually the strategy that we're looking to deliver on.
03:38And in our partnership with SPC in South Korea, that's one thing that they've done a phenomenal job on is
03:44really delivering on our standards.
03:46So the adaptation is actually ensuring the standard gets met in the new market.
03:52Why do you think Mexican-inspired food and Chipotle continue to resonate with consumers around the world?
03:59Yeah.
04:00So, I mean, people absolutely love Chipotle's culinary.
04:03And we've seen that time and time again.
04:05And providing access is actually the biggest opportunity that we have.
04:10And at the end of the day, our fresh ingredients, you know, real ingredients, prepared fresh daily using classic culinary
04:18techniques is something, you know, guests and consumers absolutely love.
04:23And at the end of the day, you know, a bowl or a burrito with, you know, rice, chicken, heavy
04:28veg, and a great salsa or sauce on top is something that a lot of people are looking for around
04:33the world and certainly looking for it from Chipotle.
04:36Yeah.
04:37How would you compare the international opportunity for Chipotle compared to here in the U.S.?
04:44Well, both opportunities are outstanding, right?
04:46We have, you know, over 4,000 restaurants today in the U.S. and see a path to at least
04:537,000.
04:54And so there's, you know, meaningful growth in front of us.
04:56And we're growing at about 350 restaurants here in the U.S.
05:00As we look internationally, obviously, we're just getting started.
05:04We own and operate in a few markets in Europe.
05:07In the U.K., we've got about 22 restaurants, six in France, two in Germany.
05:11We have great receptivity in those markets.
05:15And then we've seen in the Middle East, in Mexico, and now in South Korea, fantastic response to Chipotle in
05:23every market.
05:24And so we really believe that Chipotle has global potential, global appeal.
05:30The awareness is actually there now.
05:32The demand for the brand is there now.
05:33So it's really about how we sequence it out and make sure that wherever we go, we're consistently delivering on,
05:40you know, our brand standards.
05:43Yeah, you mentioned several markets that you're watching.
05:46Which ones are you watching closely as Chipotle considers its next phase of global expansion?
05:53Really, right now, we're focused on where we are.
05:56It's really important that, you know, we have 18 restaurants and four markets in the Middle East.
06:00We've got just our first restaurant in Mexico City, our first restaurant in Seoul.
06:04So we're really laser focused on where we are today.
06:07We definitely see more potential beyond.
06:10But right now, we want to make sure in the markets that we're in, we're operating correctly.
06:14We're delivering on our standards.
06:15We're learning from guests and listening to guests to understand how we can do a better job to serve them.
06:21But at the end of the day, really right now, focused on our current business.
06:25Right.
06:25How does the brand approach building a supply chain that can support international growth while also maintaining its food standards?
06:33Absolutely.
06:34So in our partner operated markets, like in South Korea with SPC, like in the Middle East with Alcea, like
06:40in Latin America with Alcea, that's one of the reasons we are leveraging partnership and working with our partners.
06:48They're very clear on our standards and the quality of culinary that we're trying to deliver to our guests in
06:54the restaurant.
06:54They're very clear on our sourcing strategies, our food with integrity strategies.
06:59And so we work with them to ensure that we're able to leverage their expertise on the supply side to
07:06get to the ingredients and sourcing that we want to have to support the brand standards.
07:11As we see more American food brands go global, what do you think Chipotle is doing and can do differently
07:17to stand out?
07:19Oh, well, Chipotle's equity is outstanding.
07:22So I think people are really aware of it today and aware of what the brand offers.
07:26And so, you know, my number one job is to make sure and our team's number one job is to
07:30make sure that we deliver on those expectations that the guests have of Chipotle.
07:35So delivering on the core standard, our core promise, real fresh ingredients, prepared fresh daily, every day is really what
07:43we're focused on.
07:44And then really just providing access.
07:46I mean, people are looking for this brand.
07:48And so making sure that we're providing access and access in a way that consumers expect it.
07:54And that's really, you know, what our team's focused on.
07:56And finally, as we look ahead, what can consumers expect as far as this global expansion?
08:03But also, is there anything exciting that consumers can look forward to here in the United States?
08:09Yeah.
08:09So actually, right now in the U.S., we've got a great innovation program that's in market.
08:15So Pollo Asado has just launched as well as our chili lime chips, which are fantastic.
08:20I actually had it with my boys last night.
08:22So the innovation program is fantastic in the U.S. and something guests are really enjoying.
08:29As we think about international, it's really focused on our core business and providing access.
08:36And we're going to continue to make sure one of the things I see when we open a new restaurant
08:41in Seoul or in the Middle East or in a new market, people are asking when we're going to be
08:45closer to them.
08:46And so really, my focus is making sure that we continue to expand the brand in the markets that we're
08:51in and provide access to what guests are looking for.
08:55Nate Lawton, Chief Business Development Officer at Chipotle.
08:58Thank you so much for taking the time to speak with us today.
09:01We really appreciate it.
09:02Awesome.
09:02Thanks for having me.
