Chipotle puts a hold on new concepts following closure of health food spinoff

Chipotle recently announced that it is refocusing on its main brand after more than a year of launching a new restaurant concept called Farmesa, which specialized in health foods. Unfortunately, the new concept closed earlier this year after opening just one location in the Los Angeles area in 2023. The futuristic concept relied heavily on kiosks and third-party delivery apps for ordering, and offered a menu focused on proteins, greens, grains, and vegetables.

Nate Lawton, vice president of new ventures at Chipotle, expressed excitement about the opportunity to serve premium, craveable food every day when the restaurant first launched. However, Chipotle CEO Brian Niccol indicated that the company is now more focused on turning Chipotle into an iconic brand, rather than exploring new concepts. While the possibility of a new concept in the future is not completely ruled out, it is not a current priority for the company.

The closure of Farmesa comes at a challenging time for fast-food operators in California, where a $20 minimum wage for workers was recently implemented. In response to higher labor costs, Chipotle has raised prices by 6%-7% in the state to help offset the increased expenses. Despite these challenges, Chipotle remains committed to providing high-quality, delicious food to its customers through its main brand.