Known for their high-quality ingredients and customizable menu options, Chipotle has exploded as one of the most beloved fast-casual Mexican restaurants on the scene. Its popularity has left many investors itching to open their own Chipotle restaurant franchise — but does Chipotle franchise? Keep reading to learn if you can open or buy a Chipotle Mexican Grill franchise, what it would cost to do so, and alternatives for investors looking for options.
Is Chipotle a franchise? Understanding the brand’s ownership model
Unfortunately for aspiring Chipotle owners, Chipotle does not use traditional franchising. All locations are corporate-owned and operated in order to maintain complete control over brand quality. The company has publicly stated that they have no desire to give up any level of leadership and risk compromising excellence.
Additionally, one of Chipotle’s hallmarks is its emphasis on sourcing only the best ingredients. High-quality ingredients tend to come with a matching price tag — and Chipotle has some of the highest food costs in the industry. The company has no desire to face pressure from franchisees to cut corners or adjust their standards.
Can you open or buy a Chipotle restaurant? What’s actually possible
Individual entrepreneurs are not able to buy or open a Chipotle location through traditional franchise purchase, as all locations are corporate-owned. The only way to currently invest in Chipotle is through their stock.
This is not to say that Chipotle is not focused on growth. The company is currently in the midst of a large expansion and development plan, with the ultimate goal of 7,000 restaurants in the U.S. and Canada, in addition to international expansion. Chipotle currently operates in Europe and the Middle East, and will be opening their first restaurants in Asia in South Korea and Singapore this year. The company also plans to open their first location in Mexico in the coming months.
These international Chipotle restaurants are not franchises — they’re joint ventures. Chipotle’s Asian locations will be in partnership with SPC Group, a leading South Korean food company, while their first international agreement in 2023 was in partnership with Alshaya Group and allowed the company to begin making a footprint in the Middle East.
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Alternatives to a Chipotle-style franchise
While it’s not possible to open a Chipotle of your own, investors seeking the opportunity of buying a franchise or opening a similar fast-casual concept still have options. Here are a few of the most popular choices:
Moe’s Southwest Grill
A popular counterpart to Chipotle, Moe’s is known for its wide menu and affordable prices. With franchise locations in 35+ states and over 600 restaurants worldwide, predominantly in the southeast US, Moe’s draws many of the same customers who crave the Tex-Mex comfort of Chipotle.
Tropical Smoothie Cafe
Many of Chipotle’s most loyal customers frequent the restaurant to enjoy healthier options than standard fast food fare. This same customer base is drawn to Tropical Smoothie Cafe, a chain with over 1,450 locations nationwide. Tropical Smoothie offers everything from bowls to flatbreads to wraps in addition to its iconic smoothie blends.
Barrio Burrito Bar
For future franchise owners interested in entering the Mexican fast-casual market, Barrio Burrito Bar is a rapidly growing option, with over 1,500 contractually committed franchise units to open across the US. A popular Canadian franchise, diehard fans of the chain claim it to be even better than Chipotle, with bigger portions and more menu selections.
Taziki’s Mediterranean Cafe
Fans of Chipotle’s dedication to fresh, high-quality ingredients love Taziki’s Mediterranean Cafe, home to flavorful, handcrafted salads, dips, and gyros. However, unlike Chipotle, 2/3 of Taziki’s Mediterranean Cafe restaurants are franchises, and the company hopes to continue growing via franchise partners across the country.
What a Chipotle-level restaurant would typically cost
So how much would a Chipotle franchise cost to open? While it’s impossible to know for certain, as Chipotle is not a franchise restaurant, we can estimate the general costs of opening thanks to data from similar restaurants.
It’s expected that a Chipotle-level franchise would cost between $500,000 and $2,000,000 in startup fees. From there, ongoing fees such as advertising fees (usually between 2% and 5% of gross revenue), royalty fees (usually between 4% and 12% of gross revenue), and business insurance need to be taken into consideration, in addition to hiring costs, inventory, equipment maintenance, and an eventual franchise renewal fee. For investors who are just getting started, learning how to create a business plan can help outline these costs and plan for a successful launch.
