Chipotle puts new ideas on hold following closure of health food spinoff

Over a year since its launch, Chipotle is shifting its focus back to its main brand after the closure of its health food restaurant concept, Farmesa. Farmesa had opened just one location in the Los Angeles area in 2023, boasting a futuristic approach that heavily relied on kiosks and third-party delivery apps for ordering. The concept centered on offering healthy foods such as proteins, greens, grains, and vegetables.

Nate Lawton, Chipotle’s vice president of new ventures, expressed excitement about bringing the Farmesa concept to life at the time of its launch. 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 the 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 the company’s operations.