Chipotle Mexican Grill, Inc. has been one of the fastest-growing fast-casual food service chains in the world. Founded by Steve Ells in 1993, it has more than 2,650 restaurants in the United States, the United Kingdom, France, Germany, and Canada. It provides for the low price of fast-food diners with high-quality cuisines, which are prepared with healthy and fresh ingredients according to the convenience of the customers. Let’s see the ‘Chipotle vs. The World: Who Are Chipotle Up Against?’.
Chipotle Vs The World: Who Are Chipotle Up Against?
Through the years, Chipotle’s market value has soared heights, increasing to $38 billion. As of the quarter ending March 31, 2022, its net income was $0.158 billion, recording an increase of 24.54%. Being such a formidable force in the fast-casual dining industry, Chipotle has to compete against its alternatives to maintain and grow its position and customer loyalty. As the competition in the food market toughens, some of its major competitors emerge in Qdoba Mexican Eats, Moe’s Southwest Grill, Baja Fresh Mexican Grill, Rubio’s Coastal Grill, and Freebirds.
Qdoba Mexican Eats
One of the most prominent competitors of Chipotle in the Mexican casual dining sector, Qdoba Mexican Eats has expanded to over 700 locations with its self-operated and franchised eateries. What makes it a force to be reckoned with are the size and variety of dishes on its menu and the commitment to standard and quality. Its strategic adoption of the franchise model in 2019 has been a distinguishable factor. Growing for 15 years under the fast-food colossus Jack in the Box, Qdoba was sold to Apollo Global Management in 2018.
Moe’s Southwest Grill
Moe’s Southwest Grill, owned by Focus Brands, has come to be a Mexican food behemoth in the United States with its unique approach to creating a fun and quirky environment. Focus Brands encourage franchising. Their menu features items named after media and entertainment personalities. Moe and Chipotle engage in frequent food wars, the most prominent of which was the queso battle of 2020. Moe’s had opposed Chipotle’s new queso recipe with the statement “Free Queso is Better than Some New Queso Recipe”. This makes Moe one of the most vocal competitors of Chipotle.
Baja Fresh Mexican Grill
Franchised under MTY Food Group, Baja Fresh Mexican Grill is operated along with its sibling company, La Salsa Fresh Mexican Grill, to facilitate a joint expansion in their market share and competitive advantage. In 2013, Baja Fresh Mexican Grill introduced a fresh restaurant design with a revamped menu that focused heavily on the freshness and taste of the food. They are known for their tradition of making handcrafted products and refusing to use pre-packaged things. When MTY franchised Baja Fresh Mexican Grill in 2016, it had eateries at over 162 locations, besides the 23 locations under La Salsa. In recent years, it has seen significant growth despite facing several setbacks.
Rubio’s Coastal Grill
Founded ten years before Chipotle in 1983, Rubio’s was an established chain that operated with a solid customer base. It offers a variety of Mexican dishes with special emphasis on fish-based tacos, alongside tortillas, grilled mahi-mahi, and so on. Previously known as Rubio’s Mexican Grill, the company was renamed with the replacement of ‘Mexican’ with ‘Coastal’ to highlight its specialty of seafood items and adoption of a fresh beach look for its eateries in California. However, unlike Chipotle, Rubio’s has failed to gain a significant geographic footing. It faced further decline due to the 2020 crisis when the number of locations dropped from 200 to 167. Additionally, the company had to file for bankruptcy protection in 2020 due to the failure to pay more than $82.3 million in outstanding financial debt obligations. Nevertheless, Rubio’s completed its restructuring at the end of 2020 and is ready to stand up to Chipotle as one of its competitors.
Freebirds
Similar to the aura and setting of Chipotle, Freebirds is a unique Mexican restaurant that offers some of the highly sought-after dishes, increasing its demand among customers. Originating in Austin, Texas, it owns over 60 locations across the United States. It distinguishes itself from Chipotle by being one of the few fast-casual restaurants that prepare burritos with grass-fed steak and free-range chicken. It also uses traditional Spanish rice, unlike Chipotle and the others that use cilantro-lime rice. However, the lack of supply and increasing price of the ingredients undercuts its profits. Recent struggles with expenses have led to the closure of several locations.
Conclusion
Although it faces quite the competition, Chipotle’s growth has been dynamic and promising. The rising demand for Mexican cuisine gives a positive impetus to its expansion. However, its alternatives have continued to challenge its position, making the fast-casual diner market a hotspot for aggressive competition among investors. Although not a fast-casual chain, Taco Bell has also joined the race to compete with Chipotle with its improved services and quality of food.
