Chipotle Scraps Farmesa Fresh Eatery After Ghost Kitchen Closure

Chipotle Mexican Grill’s venture into the Farmesa Fresh Eatery concept has come to an abrupt halt following the closure of its partnering platform Kitchen United’s ghost kitchens.

Roughly a year prior, Chipotle generated buzz with the launch of its pioneering Farmesa locale at Kitchen United’s Santa Monica hub. This spinoff model centered on customizable bowls, its name marrying “farm” and “mesa,” the Spanish word for table, to underscore its dedication to farm-to-table principles.

Regrettably, the Santa Monica ghost kitchen ceased operations this past February amidst the financial downturn faced by its parent company.

Chipotle’s chief customer and technology officer, Curt Garner, confirmed to CNBC that the company presently has no concrete plans to roll out standalone Farmesa outlets. However, Garner noted that the Farmesa brand persists within Chipotle’s innovation lab, where ongoing experimentation with novel menu offerings continues.

During the company’s recent earnings call, CEO Brian Niccol emphasized Chipotle’s sharpened focus on its core brand, both within the U.S. and in its burgeoning international endeavors. While Niccol hinted at the possibility of exploring ventures beyond the core brand in the future, he stressed that such pursuits aren’t a current priority.

“Obviously, if the opportunity presents itself where it would make sense for us to do something outside of the brand, so I would never want to say never, but it’s just not a focus for us right now.”

CEO Brian Niccol via CNBC

Chipotle’s strategic pivot toward enhancing restaurant efficiency and speed to bolster sales has paid dividends, with the company surpassing Wall Street’s projections for first-quarter earnings and revenue.

In a significant industry development, Kitchen United disclosed last November its plans to either shutter or divest all its locations, pivoting toward a software-centric business model. Ghost kitchens, hailed for their role in bolstering delivery profitability during the pandemic, encountered headwinds as dine-in traffic resumed, investments shrank, and growing scrutiny arose over the business model.

March saw SBE founder Sam Nazarian swooping in to acquire Kitchen United’s remaining assets and intellectual property, heralding the birth of a new venture christened Everybody Eats.