3 Challenges Chipotle Faces Launching an Asian Chain

Chipotle Mexican Grill has announced it intends to try to duplicate its success in organic, locally sourced fast-Mexican food with an as-yet-unnamed Asian concept next year.

Company CEO Steve Ells said:

"Chipotle is not successful because we serve burritos and tacos," he added. "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. 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."

1. Local sourcing challenges. The first thought that comes to mind is: How is Chipotle going to find locally sourced, organic shrimp all over the U.S., for instance? The ingredients for Asian food, particularly the seafood, will greatly challenge Chipotle's commitment to finding local and organic food to serve in every locale.
2. Not an open field. When Chipotle started, its prime competitors -- Qdoba and Baja Fresh -- were just getting started, too. The idea of a big, national, quick-serve Mexican eatery was just being born. This is hardly the case with quick-serve Asian cuisine. Panda Express has a bit of a leg up here -- it's already got more than 1,300 fast-Asian restaurants, to name just one established player in the niche.
3. More complex menu. Mexican food is pretty simple to execute. You throw together beans, tortillas, a few meats and cheeses, guacamole, rice, and you're pretty set. Asian food involves a lot more chef expertise, more ingredients, different spices, and more complex dishes that are tricky to keep appetizing-looking in a warming tray -- just hit your local grocery store's hot-deli line or a shopping-mall food court and take a look. Staffing and ingredients both may be more costly, making the operating model not pencil out as well.

Photo via Flickr user Aranami
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