Why Chipotle Is Expanding Further Into Canada

Chipotle Mexican Grill Inc CMG will continue expanding into Canada this year after a three-year hiatus.

What Happened: Chipotle announced on Tuesday its plans to expand its presence in Canada. The Mexican restaurant chain will open its doors in Surrey, British Columbia, on March 30 and this summer plans to open a location in Port Coquitlam, British Columbia, which will have the first Canadian Chipotlane, the brand's drive-thru digital order pickup lane.

Over the next year, the company will add six restaurants in Ontario and British Columbia.

Why It Matters: Chipotle says it has seen a growing demand for its products in Canada. Chipotle’s investment in digital platforms in the country has allowed the company to expand its delivery services through DoorDash Inc DASH and Uber Technologies Inc’s UBER Uber Eats, which Chipotle paired up with in Canada in May 2020.

The expansion of eight new locations will make Chipotle's menu available to more Canadians for delivery and in-person dining.

"Canada has cleared our stage-gate process, and we are ready to accelerate new restaurant openings," said Chipotle CFO Jack Hartung in a press release.

"We will be experimenting with different location formats and restaurant designs throughout the country to gauge consumer preferences in the various markets."

What’s Next: Chipotle added two new items to its Canadian menu. In January, Chipotle launched the limited-time Cilantro-Lime Cauliflower Rice, the company's latest plant-based option, and earlier this month, made the Hand-Crafted Quesadilla its first-ever customizable digital entrée available to Canadians.

"Given the rising popularity of Chipotle's real food in Canada, we believe there is a massive growth opportunity in this international market," said Anat Davidzon, managing director of Chipotle Canada.

(Photo: Chipotle in Surrey, British Columbia. Courtesy Chipotle)