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| Chipotle announced plans to close between 55 and 65 stores this year as part of a restructuring effort. File Photo by Susan Montgomery/Shutterstock |
By Daniel Uria, UPI
Chipotle announced plans Wednesday to close dozens of underperforming stores as part of a restructuring effort.
The fast-service Mexican food chain plans to close between 55 and 65 stores that have been open between two and 15 years, USA Today reported.
At least half of the stores will close within the next 30 days.
The company also released a statement saying the restructuring strategy will result in non-recurring charges throughout the next several quarters with costs, mostly related to the closures, within the range of $115 million to $135 million.
Chipotle CEO Brian Niccol said the company is focusing its efforts on making the brand more engaging, visible and culturally relevant.
"This will include three big initiatives -- revamping our marketing communications and plans, leveraging our second make line to grow digital sales and expand access, and engaging with our customers by launching a new loyalty program in 2019," Niccol said.
The chain also plans to introduce new menu items such as quesadillas, avocado tostadas, nachos and chocolate shakes offered on a trial basis at a Chipotle location in New York City.
Niccol, who previously served as president of Yum! Brands' Taco Bell Division from 2013 to 2014 and CEO from January 2015, replaced Steve Ells as CEO of Chipotle in March.
During his time at Yum! Brands he was responsible for introducing mobile ordering and payment at both Taco Bell and Pizza Hut.
Last month, the company announced plans to move its offices from Denver to Newport Beach, Calif., within six months.
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