Positioning a fast-food chain in today’s market is very complicated. They don’t always capture the public’s attention or achieve great success, but that doesn’t stop the biggest brands from launching new concepts in the hope that they will become popular.
It is even more complicated when talking about fast-food chains that serve fast food, such as CosMc’s, a McDonald’s spinoff where much healthier meals were offered than the well-known burgers. Or, for example, Chipotle, the Mexican company.
What is Chipotle?
Chipotle Mexican Grill is a fast-food chain in the United States, a place where you can order a burrito bigger than your face or a bowl loaded with fresh and tasty ingredients without feeling like you are eating something processed or full of strange additives.
Unlike typical fast-food chains, Chipotle has managed to win over people’s hearts (and stomachs) by offering fast food with a more natural and authentic touch. Its concept is simple but effective: you enter, choose a base (taco, burrito, or bowl), and then customize it with the proteins, sauces, and toppings you like best. It is like a Mexican-style Subway, with extra guacamole if you want to treat yourself (although yes, they charge extra for it).
A bump in the road
But even the most successful brands want to innovate, and that is why, in 2023, the chain decided to bet on something different: Farmesa Fresh Eatery, a new restaurant concept based on healthy dishes and high-quality proteins.
However, they have faced several challenges since launching this second brand. Why hasn’t it taken off? In its latest earnings call, Chipotle CEO Brian Niccol confirmed that the company is no longer interested in developing a second brand and that its priority is to consolidate Chipotle as an iconic brand in the U.S. and worldwide.
What is Farmesa Fresh Eatery?
The second brand, launched in 2023, allowed customers to choose the menu that appealed to them most. Additionally, the recipes were designed by Nate Appleman, a James Beard Award-winning chef.
Farmesa operated through Santa Monica (California) Kitchen United, offering orders through digital kiosks such as UberEats and similar platforms, but shortly after, the chain lost popularity.
Why did it close?
Despite carrying an innovative healthy food concept, not many people recognized that Farmesa belonged to Chipotle, since the latter is synonymous with high-calorie food rather than salads. Perhaps the marketing department did not play its cards well in this regard.
On the other hand, Farmesa operated only in California (expecting, of course, to expand to other states), but the competition was much greater, as companies like Sweetgreen and Cava already dominated that sector.
This is not Chipotle’s first failure
As seen, Chipotle has already tried several times to expand nationwide.
In 2011, it was inspired by the flavors of Southeast Asia with StopHouse, where it replicated the Mexican model with noodle and rice bowls, but it never gained much traction in the market and had to close its doors in 2017.
In 2013, it opened Pizza Locale, a fast-casual Neapolitan-style pizza business with five locations in Denver, which also did not succeed and closed in 2023.
And finally, Farmesa, which lasted only a year and a half in the market.
What does this mean for Chipotle?
After this closure, they will have to rethink a new commercial strategy in which, instead of diversifying, it may be more beneficial to strengthen their main business and expand their traditional restaurants rather than take risks with new concepts.
As for whether Farmesa was a good idea or not, no value judgment can be made about it, only that, perhaps, sometimes it is better to work on what already functions rather than taking a leap into the market without knowing how the endeavour will turn out.
