Chipotle Strikes Franchise Agreement for Expansion in the Middle East — Retail Bum

Chipotle has signed a franchise deal with Kuwait’s Alshaya Group to open restaurant locations in the Middle East in 2024.

The agreement marks Chipotle’s foray into the franchise model as the company directly operates all its 3,200 locations in the U.S. and 50-plus locations in Canada and Europe.

In the first phase of expansion, Alshaya Group will open two stores in Dubai and Kuwait, each focusing on using fresh and local ingredients that cater to local taste buds while still offering the U.S. experience, Chipotle CEO Brian Niccol told CNBC.

Niccol added that Chipotle chose to work with Alshaya Group given the company’s proven market experience running franchise locations for U.S. quick service restaurant (QSR) chains such as Starbucks, Shake Shack, and Texas Roadhouse.

“They’ve got great brands, great operations, great people programs, which just gave us confidence that they’d be able to execute the Chipotle proposition effectively in the Middle East,” he said.

Considering the success of the new franchise locations, Chipotle might eventually open hundreds more in the future. The company’s experience working with a franchise partner in the Middle East could also serve as a model for expansion in other…