Chipotle will first launch Farmesa Fresh Eatery at Kitchen United's upcoming Santa Monica store.
Source: Chipotle Mexican Grill
Chipotle Mexican Grill is abandoning its Farmesa Fresh Eatery spinoff after its partner Kitchen United closed its ghost kitchen.
A little more than a year ago, Chipotle announced it would open its first Farmesa location in Kitchen United's Santa Monica location. The spinoff's menu focused on customizable bowls. The brand name is a combination of “farm” and “mesa,” the Spanish word for table, to convey the farm-to-table approach.
However, Ghost Kitchen in Santa Monica closed in February due to poor business performance at its parent company.
Kurt Garner, Chipotle's chief customer and technology officer, told CNBC on Wednesday that the company has no plans to open a freestanding version of Farmesa. But the brand lives on with new menu items in the company's innovation lab, he said.
Chipotle is now focused on its brands in the U.S. and abroad through its fast-growing international operations, CEO Brian Nicol said on an earnings call Wednesday.
“Of course, if the opportunity arises, it would make sense for us to do something outside of the brand, so I don't want to say never, but it's just not a focus for us at the moment. ” he told analysts.
Instead, the company has focused on improving restaurant efficiency and speed to increase sales. Chipotle's first-quarter profit and sales on Wednesday beat Wall Street expectations.
In November, Kitchen United announced plans to close or sell all of its stores as it transitions into a software business. Ghost kitchens, also known as cloud kitchens or dark kitchens, allow restaurants to prepare food exclusively for delivery.
The format has surged in popularity during the pandemic as restaurants look for ways to make food delivery more profitable. But as customers started returning to in-person dining and capital soared, many ghost kitchen startups like Kitchen United found themselves in trouble.
In March, SBE founder Sam Nazarian purchased the remaining Kitchen United stores and intellectual property for an undisclosed amount and formed a new company, Everybody Eats.