Chipotle UK reports revenue soars by 130%

The full-year loss was at £5.9m for 2021.

Chipotle Mexican Grill UK remains challenged by low consumer familiarity, differences in customer tastes, and lower spending by consumers despite revenues increasing by 130% to £11.1m for the full year ending December 2021 compared to £4.8m in 2020.

Comparable restaurant sales for 2021 increased to 79% compared to a 39.5% increase. Comparable restaurant sales are the change in period-over-period sales for restaurants in operation for at least 13 full calendar months. Comparable restaurant sales were positive for the full year, attributable to the lifting of COVID-19 restrictions.

The cost of sales reached £10.9m, mostly from restaurant-level expenses. 

“Refining our long-term supply strategy for our European locations remains an important objective. We also continue to focus on labour costs as we strengthen our teams and become efficient in serving our customers. Lastly, we are focused on growing our delivery business while effectively managing the costs associated with this sales channel. Loss for the whole year of 2021 was at £5.9m,” the restaurant chain said in its financial statement.

Chipotle said that sales in UK restaurants may take longer to ramp up and reach expected sales and profit levels, and may never do so.

The brand said it may need greater investments in advertising and promotional activity which could negatively impact profitability its profitability.

“We also find it difficult to hire, motivate, and keep qualified employees who can project our vision, passion and culture. Difficulty in finding reliable suppliers and distributors of our food may pose added uncertainty to our success,” Chipotle said.

Chipotle said the effects of the COVID-19 pandemic may still continue to affect their operations and financial results in the foreseeable future.

As of 31 December 2021, Chipotle has 11 restaurants in the UK.