For a company whose guacamole has become a signature item, Chipotle can’t afford to take avocados for granted. Each year, the fast-casual chain uses over 130 million pounds of the fruit across its more than 3,700 locations—nearly 5% of all avocados consumed in the U.S. But climate variability, pandemic-era disruptions, and trade tensions have exposed the fragility of global food systems. As a result, Chipotle recognized the risks of relying too heavily on a single source country. Mexico, which once supplied 85% of its avocados, now accounts for only half, as the company continues a years-long push to secure more diversified, resilient supply lines for avocados.
To meet the challenge of diversifying its avocado supply, Chipotle expanded its supply chain operations and built direct relationships with growers. One of its major suppliers, Cartama in Colombia, now ships around five million avocados weekly. The company has worked closely with growers to switch from local avocado varieties to the Hass type preferred in the U.S. The change in sourcing led to new challenges for Chipotle locations. Lighter, firmer fruit from South America forced Chipotle to regularly update training materials to help restaurant staff judge ripeness and adjust recipes.
The financial pressure from tariffs has also forced Chipotle to balance cost management with customer experience. Rather than raise menu prices, the company plans to absorb any potential price increases in the future. In fact, even when avocado case costs spiked from $30 to $70, the burrito chain kept prices stable. Chipotle’s sourcing overhaul highlights how companies must navigate international trade uncertainty while maintaining product consistency and brand standards. As Chief Strategy Officer Jack Hartung put it, the risk of doing nothing is worse. By investing in geographic diversity, Chipotle hopes it can turn a trade risk into a strategic opportunity.
Questions:
- Why is Chipotle sourcing its avocados from a variety of places rather than relying heavily on a single country?
- Do you think Chipotle will be able to keep prices stable in the future? Why or why not?
Source: Heather Haddon, “Chipotle Went on a Seven-Year Quest to Find Avocados Outside of Mexico,” The Wall Street Journal, April 1, 2025.