JV formed with Sangmidang affiliate Big Bite
Gangnam store opens Wednesday; 2 more planned this year
Menu, cooking and ordering identical to US locations
Heo Hee-su: 'We will stick to company-operated stores to maintain quality'
Chipotle, the American fast-casual restaurant brand, is entering South Korea — its first foray into Asia — through a partnership with Sangmidang Holdings. The company said its goal is to establish a customizable dining culture in the Korean market, where customers build their own meals by selecting ingredients at the counter.
Chipotle's first Asian store — and first JV — lands in Korea
S&C Restaurant Holdings, the Korean operating company for Chipotle, held a press conference Tuesday morning at the Gangnam location in Gangnam-gu, Seoul, announcing that the store — Chipotle's first in Korea and in all of Asia — will officially open Wednesday. Two more locations are planned before the end of the year, followed by a first Singapore store in the first half of next year. The second Korean location is being prepared at Shinsegae Department Store's Gangnam branch.
Chipotle was founded in the United States in 1993 and has grown around a core philosophy of "Food with Integrity." The brand is known for its made-to-order model, in which customers choose their own ingredients, and for preparing fresh produce daily. It is a constituent of the S&P 500.
S&C is a joint venture established by Chipotle and Big Bite Company, an affiliate of Sangmidang Holdings. This marks the first time Chipotle has pursued overseas expansion through a joint venture. Sangmidang secured the operating rights for Korea and Singapore on the strength of its track record running global restaurant brands including Shake Shack and Jamba.
Heo Hee-su, chief vision officer and president of Sangmidang Holdings, said introducing Chipotle goes beyond bringing in a new brand — it means proposing a new dining culture. "We will faithfully realize the high quality standards and brand philosophy that Chipotle has pursued, deliver the best possible experience for Korean customers, and set a new benchmark in the dining market," she said.
Chipotle CEO Scott Boatwright said Korea is an ideal starting point for the brand's Asian expansion and carries significant growth potential. "We will focus on Chipotle's differentiated value and experience — delicious food that customers can freely customize to their own taste at a reasonable price — and expand the business across Asia," he said.
Same menu and ordering as the US — 'Make customizing an everyday habit'
Chipotle's first Korean location, near Gangnam Station, seats 96 and replicates the menu, cooking methods and ordering format of US stores. Staff prepare and trim up to 54 ingredients on-site every morning. No artificial flavors, colors or preservatives are used in any dish.
The ordering process follows the same assembly-line format. Customers first choose a base — burrito, burrito bowl, tacos, salad or quesadilla — then move along the counter adding their preferred ingredients. Protein options include chicken, steak, barbacoa (beef), carnitas (pork), sofritas (tofu) and a vegetarian option. Toppings such as rice, beans, salsa, cheese, sour cream and guacamole can be added.
Heo said she wants two cultures to take natural root in Korea through Chipotle. "The first is a customizing culture, and the second is making that experience part of everyday life," she said. "Normalizing the customizing experience is the core of what we want to bring to the Korean market."
To secure a daily supply of fresh ingredients, Chipotle and Sangmidang have arranged contract farming with domestic producers for some raw materials. Sangmidang produces certain items including tortillas, while dairy products such as sour cream are supplied by Maeil Dairies. Heo said there is no room for compromise at Chipotle. "That is why we treated the completion of the supply chain, not the opening of the store, as our true starting point in Korea," she said.
All locations will be company-operated, consistent with Chipotle's global practice. "Chipotle operates only company-owned stores, both in the United States and abroad, in order to deliver the same quality ingredients and recipes," Heo said. "We intend to stick to that model to maintain consistent quality and a consistent customer experience."
With the Gangnam store serving as Chipotle's first in Asia and S&C holding the Singapore operating rights as well, the Korean market is widely seen as a bellwether for the brand's broader regional ambitions. "Korea is more than just our first market in Asia," Boatwright said. "It is the place where we will set the standard for how Chipotle grows across the entire region."
spa@heraldcorp.com