The embattled burrito giant booked a 29 cent a share charge during the third quarter to write down the value of its 15-store Asian fare concept ShopHouse. Chipotle opened its first ShopHouse in 2011, offering an upscale take on Asian-themed food that includes rice bowls and sandwiches. From the first restaurant in Washington, D.C., ShopHouse has since expanded to 14 other locations, including Los Angeles.
"After operating in three diverse markets, we have determined ShopHouse hasn't demonstrated an attractive unit economic model," said Chipotle founder and co-CEO Steve Ells on an earnings call. Chipotle is "exploring strategic alternatives" for ShopHouse said Ells, declining to commit to shuttering the concept entirely. Ells added that Chipotle will shift its focus on driving menu innovation at its namesake division, while also focusing on its seven store pizza concept called Pizzeria Locale and soon, hamburgers.
Chipotle's burger concept Tasty Made is scheduled to open this fall in Columbus, Ohio. It will exclusively focus on burgers, fresh-cut French fries and milkshakes. Similar to Chipotle, the chain will stress meat and other food free of artificial ingredients.