Chipotle opens first store in Mexico to try and do what Taco Bell could not

It looks like Chipotle wants to move closer to its Mexican roots, and success in the country could be a sizable growth opportunity for the fast-casual brand.

Last week, the California-based chain opened its first store in Monterrey’s San Pedro Garza Garcia neighborhood, which has long been regarded as a gateway for business into Latin America (and one of the wealthiest areas in all of the region).

The Monterrey location could just be the start; Chipotle’s Mexico director Pablo de Brito told Reuters ​that there are plans to open six to eight new stores in Monterrey, the country’s second biggest metropolis, within the next 14 months, followed by expansion to Mexico City and beyond.

Precedent for failure? Recent history suggests Chipotle’s decision to expand into this new territory could be ill-advised, especially considering the performance of Taco Bell in the region.

Taco Bell first attempted to break into Mexico in 1992, but according to Food Republic, the main roadblocks were pricing and lack of familiarity with the American-influenced menu items. The brand tried again in 2007, leaning into its American identity, but consumer sentiment did not change; it closed all of its Mexico locations in 2010.

Other examples of American brands selling cuisine back to a country with dire results include Domino’s, which entered a franchising agreement with Italian operator ePizza in 2015. The plan was to open 880 outlets across Italy by 2030, but according to the Guardian, it only made it 3% of the way, or 29 locations, before pulling out of the nation entirely, largely due to competition from other food delivery services in the wake of Covid-19.

An outlier might be Outback Steakhouse, which has managed to keep seven locations open in Australia. However, sentiment surrounding these locations is lackluster—reportedly because it fails to resemble Aussie culture in any way.