Chipotle is keen to unlock the brand’s potential in European markets, chief executive Brian Niccol has said.
Niccol was speaking on an investor call following the release of the Mexican-inspired fast casual chain’s Q1 2024 results, which saw it grow sales by 14% to reach $2.7bn.
Chipotle has c19 locations across the UK and has previously said its growth would depend on increasing sales and familiarity with the brand.
A new leadership team will further drive the brand’s potential, Niccol added, with the appointment of Anat Davidzon as managing director international, overseeing both Canada and Europe, including the UK.
“Our belief is we’ve learned a lot on what we’ve had to do in Canada to get that business to perform,” he said. “We are taking that leadership there and giving her the opportunity to oversee our Europe business, take those lessons learned and apply it.
“At the same time we are taking what we think are some of our best operators in the US and giving them the opportunity to grow by working in our European business.
“I don’t know what the timeline is going to be, but I am feeling optimistic that we’ve got the right operators, the right leadership. And the proposition is compelling, right? Clean food, great culinary, done fast with high levels of customisation that resonates.”
Chipotle also appointed Ben Williams as managing director Europe last year, with Jacob Sumner remaining director of European operations.
“We brought over one of our top operators about a year ago who helped to identify areas of opportunity, including better aligning our training tools, systems, and culinary with our North American operations where it makes sense and is feasible,” Niccol added. “We have made nice progress aligning the culinary and are beginning to better align the operations, including a recent change in leadership structure.
“The new leadership team in Europe, including two top operators from the US, will take a similar strategic approach to improve economics and unlock Europe’s growth potential.”
Earlier this year, Chipotle’s UK business reported £17.9m in revenue for the 2022 financial year, up from £11.1m in 2021.
According to its financial report on Companies House: “Due to lower consumer familiarity with the Chipotle brand, sales at restaurants in the UK may take longer to ramp up and reach expected sales levels.”
Chief development officer Tabassum Zalotrawala spoke to MCA in August 2022, saying university towns would be a big play for the brand.
