Steve Ells, the founder of Chipotle, has shifted his focus from the burrito bowl concept to sandwiches with his new venture, Counter Service. After leaving Chipotle in 2020, Ells opened Counter Service in New York City in 2025 (with Peloton co-founder Tom Cortese as CEO), which now boasts five Manhattan locations and one in Brooklyn as of April 2026. The new restaurant emphasizes elevated sandwiches made with house-roasted meats, in-house sauces and desserts, and artisan bread, aiming to combine speed with high-quality ingredients, similar to the initial fast-casual model. This move comes after an earlier vegan and automation-heavy concept called Kernel, launched in 2024, did not gain traction, leading Ells to pivot to sandwiches, where technology plays a more behind-the-scenes role.
Ells's transition comes as the burrito bowl market faces headwinds. Chains like Chipotle Mexican Grill Inc., Sweetgreen Inc., and Cava Group Inc. have seen significant stock declines, collectively losing $48 billion in market value this year, a slump of about 50%. Chipotle itself revised its financial targets, expecting revenue from established locations to fall at a low-single-digit percentage this year, marking only its second annual decrease since its IPO nearly 20 years ago. Critics have increasingly referred to bowls as "slop bowls," and consumers like Alejandro Paczka are opting for cheaper alternatives, citing "money reasons" and a weariness of "eating slop."
Despite the current downturn, industry experts do not completely count out the fast-casual chains. Michael Kaufman of Harvard Business School suggests they focus on reminding consumers of their initial successful proposition: fresh, quick food. Wall Street anticipates a rebound for Chipotle, with sales from existing stores projected to increase by about 2% next year. Cava is also expected to see revenue growth, albeit at a slower pace in 2026 than in 2025, while Sweetgreen's decline is projected to be less than 1%. Sweetgreen is even exploring a handheld menu item for early next year in response to what is being called a "bowl backlash." Chipotle's CEO, Scott Boatwright, maintains that the company will double down on execution rather than offer discounts to revive growth.
