Chipotle to expand to Mexico amid Trump trade war with U.S. neighbor

Core Insights - Chipotle Mexican Grill is set to open its first location in Mexico in early 2026 as part of its international expansion strategy [1][2] - The company has signed a development agreement with Alsea, which operates various restaurant chains in Latin America and Europe [1] - Chipotle aims to explore additional expansion opportunities in the broader Latin American region following the initial opening [2] Market Context - The expansion into Mexico occurs amid a trade war between the U.S. and Mexico, which has affected trade relations [3] - Despite diversifying its avocado sourcing, Chipotle still imports approximately 50% of its avocados from Mexico [3] - The company has previously focused primarily on the U.S. market, with international operations including 58 locations in Canada, 20 in the UK, six in France, and two in Germany [4] Consumer Insights - Chipotle believes that Mexico's familiarity with its ingredients and a preference for fresh food will attract consumers [5] - However, there are challenges, as U.S. interpretations of Mexican cuisine may not resonate with the local market, as evidenced by Taco Bell's failed attempts to expand in Mexico [5]