Chipotle to Expand to Mexico Amid Trump’s Trade War with U.S. Neighbor

Chipotle Mexican Grill is set to open its first restaurant in Mexico early next year, marking a significant step in the fast-casual chain’s effort to expand globally. The company announced Monday it has entered a development agreement with Alsea, the Latin American franchise operator responsible for managing regional outlets of Starbucks, Domino’s Pizza, and Burger King.

The inaugural Mexican location is scheduled to open in 2026, with further regional expansion under consideration.

“This move allows us to explore additional expansion markets in the region,” the company stated.

The development comes at a sensitive time in U.S.-Mexico relations, as President Donald Trump has reignited trade tensions with the country. Tariffs, including a previously proposed 25% duty on Mexican avocados, have placed strain on bilateral trade. Although the new duties were paused for goods that comply with the United States-Mexico-Canada Agreement (USMCA), concerns over import costs remain.

While Chipotle has diversified its avocado sourcing in recent years, approximately half of its avocados still come from Mexico, making the trade policies particularly relevant to the company’s operations.

International Expansion Strategy

The move into Mexico is part of Chipotle’s broader efforts to scale its presence internationally after years of focusing almost exclusively on the U.S. market.

Currently, Chipotle operates:

• 58 locations in Canada

• 20 in the United Kingdom

• 6 in France

• 2 in Germany

• 3 in Kuwait and 2 in the United Arab Emirates, under a partnership with Alshaya Group

This latest venture with Alsea suggests confidence in regional familiarity with Chipotle’s core offerings — which include burritos, bowls, and tacos made with fresh ingredients.

“We believe Mexico’s deep appreciation for fresh, high-quality food aligns with our mission,” said Nate Lawton, Chief Business Development Officer at Chipotle.

Historical Challenges in the Market

Despite Chipotle’s optimism, U.S. brands have historically struggled to establish a foothold in Mexico’s competitive and culturally specific food landscape. Taco Bell, owned by Yum Brands, has made two failed attempts to enter the Mexican market, both of which ended swiftly due to poor local reception.

Chipotle aims to overcome this challenge by leveraging its ingredient transparency and commitment to food quality, positioning itself differently from other fast-food concepts.