Chipotle Ends Farmesa Fresh Eatery Venture Amid Kitchen United Closure

Chipotle Mexican Grill is putting an end to its Farmesa Fresh Eatery spinoff. This decision comes after Kitchen United, their partner, shut down its ghost kitchens. About a year ago, Chipotle launched its first Farmesa location at Kitchen United’s Santa Monica spot.

The spinoff’s menu was all about customizable bowls, and its name is a mix of “farm” and “mesa,” which means table in Spanish, reflecting its farm-to-table concept.

Unfortunately, the Santa Monica Ghost Kitchen had to close its doors in February due to financial struggles faced by its parent company.

Chipotle's Farmesa
Farmesa’s customizable bowls won’t have standalone locations but continue in Chipotle’s innovation lab.

Chipotle’s Chief Customer and Technology Officer, Curt Garner, stated that they don’t have any plans to open standalone Farmesa locations. However, the brand continues to exist in Chipotle’s innovation lab for testing new menu items.

Chipotle’s main focus now is on its brand, both in the U.S. and internationally, as CEO Brian Niccol highlighted during the company’s recent earnings call. While Niccol didn’t rule out future ventures beyond the brand, he emphasized that it’s not their current priority.

Chipotle CEO Brian Niccol prioritizes brand growth, no immediate plans for ventures outside. (Credits: National Business Magazine)

Instead, Chipotle has been concentrating on enhancing the efficiency and speed of its restaurants to increase sales. Their first-quarter earnings and revenue beat Wall Street’s expectations.

In November, Kitchen United revealed plans to close or sell all of its locations as it shifted focus to software. Ghost kitchens, which prepare food exclusively for delivery, gained popularity during the pandemic. However, as customers returned to dining in person and capital became scarcer, many ghost kitchen startups faced challenges, including Kitchen United.

In March, SBE founder Sam Nazarian bought Kitchen United’s remaining locations and intellectual property to launch a new company called Everybody Eats.

Michael Manua
Michael Manua
Michael, a seasoned market news expert with 29 years of experience, offers unparalleled insights into financial markets. At 61, he has a track record of providing accurate, impactful analyses, making him a trusted voice in financial journalism.
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