News

Chipotle’s founder explores Asian segment

November 3, 2010

A small team from Chipotle Mexican Grill, led by founder, chairman and co-CEO Steve Ells, is working on an Asian restaurant concept set to follow the Chipotle model. While details were scarce, Chipotle's media spokesman Chris Arnold said the company plans to open one Asian inspired restaurant in mid to late 2011. The restaurant will open in one of the company's current markets, of which there are 40.

Arnold said Ells has had his eye on the Asian category for quite some time and that the restaurant's menu items will reflect the same Food with Integrity mentality that has made Chipotle a success.

A name has tentatively been selected for the concept, but Arnold said the company is not yet ready to reveal it.

"The ingredient selection is much the same as it is at Chipotle (with a) strong emphasis on natural and local," Arnols said.

The Asian category might be a perfect fit for Ells and his team. The limited-service Asian segment is led by Panda Express, which posted sales in 2009 of $1.24 billion, a 4.5 percent increase over 2008, according to Technomic. And of the top 10 fast casual restaurant chains, Panda Express weighs in at number 5 in terms of sales, followed closely by Noodles & Company (No. 7) and Pei Wei Asian Diner (No. 9).

Further, the fast casual Asian segment reported a 6.4 percent sales gain in 2009 over the previous year, posting combined sales of $1.95 billion among the top 100 chains.

According to Technomic's 2010 Top 100 Fast Casual Chain Report, brands such as Noodles & Company, Leeann Chin, SanSai Japanese Grill and Tokyo Joe's posted double-digit increases in 2009.

Ells said in a company statement that over the course of the last 17 years, he has thought about how the Chipotle model would work in other menu categories.

"Chipotle is not successful because we serve burritos and tacos. Our success comes from finding the very best sustainably raised ingredients, prepared and cooked using classical methods in front of the customer, and served in an interactive format by special people dedicated to providing a great dining experience," he said. "And while our Chipotle restaurants will of course remain our primary focus, we are also excited to see how this format works with other cuisines."

He also said the Asian segment provides the right kind of opportunity to determine if the model works when using different ingredients and a "different style of food."

"This restaurant will allow us to take a look at that," he said.

Even while the company is planning to launch a new concept, the primary focus will remain on Chipotle's growth.

"We think that there’s still a ton of opportunity for Chipotle and that is where we continue to focus most of our resources," Arnold said.