American Restaurant Chain Chipotle Will Expand Throughout Asia with Branches in South Korea and Singapore

The California-based company announced on Wednesday that it will establish eateries through a joint venture with the South Korea-based food company, SPC Group.

Photo by Reuters

Chipotle Mexican Grill intends to enter the Asian market next year by establishing restaurants in South Korea and Singapore, as the purveyor of bowls and burritos aims to broaden its global presence in light of declining consumer expenditure on dining out in the crucial U.S. market.

The swiftly transforming dining-out sector, driven by demands for diversity and convenience, offers a remarkable growth opportunity for Chipotle in Asia, stated CEO Scott Boatwright.

In April, Chipotle revealed its intention to inaugurate restaurants in Mexico for the first time, subsequent to last year's agreement with Alshaya Group to penetrate the Middle Eastern market through Dubai and Kuwait.

The company reduced its annual sales growth objective in July and failed to meet quarterly sales projections, adversely affected by a decline in restaurant visits amid an uncertain economy. U.S. President Donald Trump's trade tariffs are poised to increase supply-chain expenses.

Chipotle's current foreign network of owned and operated restaurants include outlets in Canada, the United Kingdom, France, and Germany.

The corporation presently manages over 3,800 restaurants and intends to inaugurate between 315 and 345 additional establishments this year, with a long-term objective of operating 7,000 sites in the U.S. and Canada.