In a major shift for the fast-food chain, Chipotle has decided to refocus on its main brand after the closure of its health food restaurant concept, Farmesa. The futuristic concept, which only opened one location in Los Angeles in 2023, relied heavily on kiosks and third-party delivery apps for ordering and featured healthy foods like proteins, greens, grains, and vegetables.
At the time of Farmesa’s launch, Nate Lawton, vice president of new ventures at Chipotle, expressed optimism about the concept, stating that they believed there was an opportunity to serve premium, craveable food every day. However, Chipotle CEO Brian Niccol has decided to shift the company’s focus to turning Chipotle into an iconic brand rather than exploring new concepts.
While Niccol hasn’t completely ruled out the possibility of a new concept in the future, he emphasized that their current priority is to grow and solidify the Chipotle brand both in the U.S. and internationally. The closure of Farmesa comes amid a challenging time for fast-food operators in California where the state implemented a $20 minimum wage for workers earlier this year. To offset increased labor costs, Chipotle had to raise prices by 6%-7% in the state.
