Chipotle abandons spinoff Farmesa Fresh Eatery after Ghost Kitchen closes

Chipotle Mexican BBQ The company abandoned its Farmesa Fresh Eatery spinoff after partner Kitchen United closed its ghost kitchen.

More than a year ago, Chipotle announced the opening of its first Falmesa location in the Santa Monica branch of Kitchen United. The spin-off menu has customizable bowls. Its brand name is a combination of “farm” and “tabletop” (“table” in Spanish) in an attempt to convey its farm-to-table approach.

But the Santa Monica Ghost Kitchen closed in February because the parent company ran into financial trouble.

Chipotle Chief Customer and Technology Officer Kurt Garner told CNBC on Wednesday that there are no plans to open a standalone version of the pharmacy. However, he said the brand lives on in the company’s innovation lab of new menu items.

Chipotle’s primary focus now is growing its brand in the U.S. and abroad through its growing international business, Chipotle CEO Brian Nicol said during the company’s earnings call on Wednesday.

“There are certainly things we can do outside of the brand if the opportunity arises, so I don’t want to say never, but that’s not our focus right now,” he told analysts.

Instead, the company has focused on making its restaurants more efficient and faster to boost sales.Chipotle’s first-quarter earnings and revenue topped Wall Street forecasts on Wednesday.

In November, Kitchen United announced plans to close or sell all of its stores as it pivots to software. Ghost kitchens, also known as cloud kitchens or dark kitchens, allow restaurants to prepare food specifically for takeout.

The format has grown in popularity during the pandemic as restaurants look for ways to increase delivery profits. But once consumers started eating in person again and money became more expensive, many ghost kitchen startups like Kitchen United found themselves in trouble.

In March, SBE founder Sam Nazarian acquired Kitchen United’s remaining stores and intellectual property for an undisclosed amount, creating a new company called “Everybody’s Eats.”