#. As the meat placed on the furthest back iron plate in the open kitchen began to cook, a sizzling sound and savory aroma filled the store. Neville Fantaki, Chipotle's Senior Vice President overseeing global cooking, smiled and said, "The sound of grilling meat is exactly Chipotle's original soundtrack (OST)."
Chipotle, a representative Mexican casual brand in the United States, will open its first Asian store at Seoul Gangnam on the 2nd. This ambitious project comes from Heo Hee-soo, Chairman of SPC Group's Sangmidang Holdings and Chief Vision Officer (CVO), who led Shake Shack's domestic launch and overseas expansion, after nearly a decade. Chipotle is considered a 'soul food' brand among office workers and young people in the U.S., with over 4,200 stores worldwide.
Korea marks the first time Chipotle has established a joint venture with a local company abroad. Sangmidang Holdings subsidiary ByteByte Company and Chipotle's headquarters have formed a joint venture company, S&C Restaurant Holdings, for operations in Korea and Singapore. ByteByte Company holds 51% of the shares, while Chipotle's headquarters holds 49%.
This demonstrates Chipotle's proactive intent to not only provide brand and operational know-how from its U.S. headquarters but also directly invest, sharing both the results and risks of the business. Additionally, all Chipotle stores in Korea will be operated exclusively as company-owned outlets without franchisees to maintain consistent quality and customer experience across all locations.
Scott Boatwright, CEO of Chipotle, explained, "We evaluated both the market's dynamism and SPC (Sangmidang Holdings)'s capabilities as our partner. Considering SPC's global partnerships and operational expertise, we determined that a joint venture structure is most suitable for Asia."
The joint venture plans to add two more Chipotle stores in Korea within this year and expand into Singapore in the first half of next year. While Shake Shack secured additional overseas business rights after establishing itself in the Korean market, Chipotle differs by targeting multiple Asian markets from the outset.
The preparation period before the launch turned out longer than expected. It took time to build a domestic supply chain capable of securing ingredients stably while meeting Chipotle's quality standards.
Heo (President) stated, "We spent the most time building materials and supply chains rather than store design or interior decoration. We considered the start of our Korean business not when the stores were completed, but when a supply chain meeting our standards was established."
Most ingredients, including cilantro, jalapeños, onions, and rice, are sourced domestically. Sour cream was also prepared in collaboration with Daily Milk to meet Chipotle's standards. Similar to how Sangmidang Holdings produces and supplies burger buns for Shake Shack in Korea, it plans to jointly research and supply ingredients for Chipotle, including tortillas.
The Gangnam store, with 96 seats, features an open kitchen design allowing customers to observe ingredient preparation and cooking processes. Menu composition and ordering/cooking methods are applied identically to U.S. locations. Employees begin preparing and processing ingredients for the day's sales at 5 a.m.
The ordering process is simple: choose one of bowl, burrito, taco, or salad, then select rice, beans, meat, salsa, etc., according to preference. Prices range from 12,800 to 14,800 won depending on the chosen protein (meat or vegan). Additional servings of basic ingredients like rice, beans, salsa, cheese, and lettuce incur no extra cost.
Heo (President) said, "We feel a strong sense of responsibility as Chipotle's first joint venture partner overseas. We aim to offer not just new menu items but the experience of completing a meal tailored to personal preferences, making such choices part of daily life."
in LIVING
