Chipotle, a well-known fast-food chain, has recently announced that it is refocusing its attention on its main brand after the closure of its new restaurant concept, Farmesa. The futuristic concept, which specialized in health foods and relied heavily on kiosks and third-party delivery apps for ordering, opened just one location in Los Angeles in 2023 before closing earlier this year.
Nate Lawton, vice president of new ventures at Chipotle, expressed excitement about the opportunity to serve premium, craveable food every day when Farmesa 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 currently a 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.
