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How long would you wait for a Chipotle bowl? Some South Korean diners stuck it out for three hours. The U.S. fast-casual chain opened its first Asia-region restaurant in Seoul's Gangnam neighborhood in early September, which also marked its first-ever expansion through a joint venture. The lines were so long they became a running joke on Korean social media, with one user suggesting a flight to the U.S. might be the faster way to get Chipotle. Then came the how-to guides, in posts filled with menu combinations and step-by-step explainers on how to navigate Chipotle's build-your-own ordering system. The joint venture with South Korean food company Sangmidang Holdings is "an important evolution of our global growth strategy," Nate Lawton, Chipotle's chief business development officer, told CNBC. There is no one-size-fits-all approach to entering a new market, he said, but Sangmidang brings local market knowledge, operating infrastructure and experience scaling restaurant brands across Asia. Sangmidang previously brought Shake Shack to the country. The joint venture, S&C Restaurants Holdings, is 51% owned by Big Bite Company, an affiliate of Sangmidang, with Chipotle holding the remaining 49%, according to the Korean partner. Chipotle has an established presence in Canada and Europe and is expanding through partnerships in the Middle East and Mexico as well, said Lawton. "Korea is important because we're not simply opening restaurants — we're building a model for how Chipotle can enter and ultimately scale in a new region while protecting what makes the brand special," Lawton said. "The real measure of Korea's success won't be the performance of a single restaurant," but "whether we can build a repeatable, scalable model." The Asia opportunity South Korean consumer interest in Mexican food is relatively strong, as 42% of consumers had eaten it in the previous three months, according to global market intelligence firm Mintel. Another 37% had not eaten it recently but were interested in doing so. Heng Hong Tan, associate principal for food and drink at Mintel, said South Korea and Singapore — Chipotle's next stop in Asia — offer favorable conditions for international fast-casual brands because consumers are "well-travelled, globally connected and receptive to international cuisines." Chipotle won't have the market to itself. South Korea already has Mexican-inspired fast-casual chain Cuchara, while Singapore has established players including Guzman y Gomez and Stuff'd, Tan said. Expanding in Asia also means building the infrastructure to support the business locally. In South Korea, Chipotle and its local partner built a supply chain designed to meet the company's global food quality standards. Big Bite said it tapped suppliers and farms it had already vetted for quality and reliability, along with SPC's sourcing and processing infrastructure, to build the local supply chain. Beyond Seoul Chipotle is already preparing for the second leg of its Asia expansion. Its joint venture partner told CNBC it is targeting the first half of 2027 for a Singapore launch, though the exact timing and location have yet to be finalized. "Singapore is a natural next step for Chipotle in Asia," Lawton said, describing it as a highly international market where consumers are familiar with global brands. Still, Singapore's restaurant market has its own set of challenges. Tan pointed to elevated rental, labor and energy costs as pressures on restaurant profitability. Chipotle has not announced which Asian markets could follow South Korea and Singapore, saying its priority is executing in the markets it has already committed to. Consumers across many Asian markets are willing to experiment with new flavors and restaurant concepts, creating opportunities for brands to generate awareness and trial quickly, Tan said. Ultimately, brands that can combine international appeal with local relevance are likely to be best positioned for long-term growth in Asia, he added.
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