They are huge in the US, but few British diners have heard of Chipotle Mexican Grill (CMG) or Ruby Tuesday (RT). But all this is about to change as the restaurant chains join Taco Bell in a three-pronged US attack on the British market this summer.
Chipotle, the burrito chain with nearly 1,000 restaurants across America, opened its first UK outlet in London in May and Taco Bell, the world's largest Mexican-inspired chain, will arrive in Essex this month.
Ruby Tuesday – the American casual dining chain is named after the Rolling Stones song and has more than 900 outlets around the world – opened its first UK outlet in Cardiff's St David's shopping centre last month. None of the three has come over here to make up the numbers, and sizeable expansion plans are afoot.
Nick Dawson, the general manager for UK and Europe at Taco Bell, the Yum Brands-owned quick-service restaurant (QSR) operator, said: "This will be the first of a long existence in the UK."
However, success is not assured. Pizza Hut and KFC, which are also owned by Yum Brands (YUM), and McDonald's (MCD) have found the UK a welcome home, but some big hitters from across the pond have retreated with their tails between their legs.
Indeed, Taco Bell, which launches in the Lakeside shopping centre later this month, entered the UK in the early 1990s but exited a few years later after failing to make an impact. Similarly Wendy's (WEN), the global hamburger giant, threw in the towel in 2007 after two attempts at making it in the UK.
Still, industry experts say there are many reasons why the UK remains an attractive market for US chains. "The great thing about the UK food service market is that it is very dynamic and highly diverse, particularly in London where there is a smorgasbord [of outlets]," explains Steve Gotham, project director at the consultancy Allegra Strategies.
"For expansionist US chains the UK is a natural entry point into Europe, with an established eating-out culture that readily embraces new style cuisines and branded concepts."
Allegra Strategies says there remains plenty of scope for growth in the UK food service market, which is set for a rebalancing with retail shops on the high street.
The consultancy says food service outlets, including hospitality and pubs, account for between 5 and 10 per cent of floor space on the UK high street, compared with up to 85 per cent for primarily retail as well as banks and travel shops.
In contrast, food service swallows up between 15 and 20 per cent of the space in US shopping malls and retail parks. "We will see a realignment of food service and retail on the high street," Mr Gotham predicts.
For Chipotle and Taco Bell there is a much bigger reason for launching in the UK – a huge gap in the UK market for Mexican food. While there are some national sit-down restaurant chains, notably Chiquito, as well as smaller operators such as Benito's Hat and Chilango, the UK's Mexican food market remains undeveloped. Ilaria Guandalini, the senior analyst for food service at Planet Retail, says: "There is definitely a gap in the market."
While there are differences between Taco Bell and Chipotle, both believe UK consumers are hungry for more Mexican food. Mr Dawson says: "We think that Mexican style food has been growing in popularity in the UK, whether it is eating out or dining in at home."
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