News

Chipotle halts growth of Asian fast casual concept

October 27, 2016

Chipotle is getting out of the Asian fast casual market, saying this week that although it's not necessarily closing its 15 ShopHouse units in D.C., Maryland, California and Illinois, it won't make future investments.

"After operating in three diverse markets, we have determined ShopHouse hasn't demonstrated an attractive unit economic model," CEO Steve Ells said this week during a call with investors.  

The future of those 15 units is uncertain, Chris Arnold, director of communications, said in an email to FastCasual.

"We have not made any decisions regarding Shophouse but are considering strategic options," he said. "We have opted to limit any ongoing investment because the economic model is not where we'd like for it to be to warrant additional investment."

Chipotlealso reported this week that its revenue decreased 14.8 percent  to $1 billion and net income was $7.8 million, a decrease from $144.9 million, which includes a $14.5 million non-cash, pretax impairment charge related to ShopHouse. The chain also said diluted earnings per share was 27 cents, a decrease from $4.59, including 29 cents related to the ShopHouse impairment charge.

Chipotle opened ShopHouse in 2011. It also operates two other fast casual concepts, Pizzeria Locale and Tasty Made.