Chipotle, a fast-food giant that was founded in 1993, has decided to shift its focus back to its main brand after the closure of its health food restaurant concept, Farmesa. The closure of Farmesa, which opened just one location in Los Angeles in 2023, marks the end of an era for Chipotle’s foray into the health food market. The concept heavily relied on kiosks and third-party delivery apps for ordering and centered on offering healthy foods such as proteins, greens, grains, and vegetables.
At the time of its launch, Nate Lawton, Chipotle’s vice president of new ventures, expressed excitement about bringing the Farmesa concept to life. However, Chipotle CEO Brian Niccol has now stated that the company’s primary goal is to establish Chipotle as an iconic brand both in the U.S. and internationally. While not ruling out the possibility of exploring new concepts in the future, Niccol emphasized that the current focus is on strengthening Chipotle’s core brand.
The closure of Farmesa coincides with a challenging period for fast-food operators in California where a $20 minimum wage for workers was implemented earlier this year. In response to increased labor costs, Chipotle has raised prices by 6%-7% in the state. This move aims to help offset the impact of the new wage requirement on their operations.
In conclusion, while Chipotle may have initially been excited about expanding into new markets through its health food concept Farmesa, it has now shifted its focus back to strengthening its core brand as an iconic fast-food chain both domestically and internationally.
