Chipotle is first launching Farmasa Fresh Eatery at Kitchen United’s upcoming Santa Monica location.
Source: Chipotle Mexican Grill
Chipotle Mexican Grill Partners is abandoning its Farmesa Fresh eatery spinoff after Kitchen United closed its ghost kitchens.
Almost a year ago, Chipotle announced the opening of its first pharmacy Location at Kitchen United’s Santa Monica location. The spinoff’s menu focuses on customizable bowls. Its brand name is a combination of “farm” and “mesa”, the Spanish word for table, in an effort to communicate its farm-to-table approach.
But the Santa Monica ghost kitchen closed in February because its parent company was struggling financially.
Curt Garner, Chipotle’s chief customer and technology officer, told CNBC on Wednesday that the company has no plans to open a freestanding version of the pharmacy. However, the brand is alive in the company’s innovation lab for new menu items, he said.
CEO Brian Niccol said on the company’s earnings call Wednesday that Chipotle’s primary focus is now on its brand through its growing international business in the U.S. and beyond.
“Obviously, if the opportunity presents itself it would make sense for us to do something outside the brand, so I wouldn’t want to say never, but that’s not the focus for us right now,” he told analysts.
Instead, the company is focusing on improving the efficiency and speed of its restaurants to increase sales. Chipotle’s first quarter Earnings and revenue topped Wall Street estimates on Wednesday.
In November, Kitchen United announced plans to close or sell all of its locations as it transitioned to software. Ghost kitchens, also known as cloud or dark kitchens, allow restaurants to prepare food for delivery only.
The popularity of this format increased during the pandemic as eateries looked for ways to make food delivery more profitable. But once customers started dining in person and capital became more expensive, many ghost kitchen startups like Kitchen United found themselves in trouble.
In March, SBE founder Sam Nazarian purchased Kitchen United’s remaining space and intellectual property for an undisclosed amount to form a new company, Everybody Eats.