Chipotle’s Fast-Food Experiment Farmesa Ends Amid Rumors of Closures

NEWPORT BEACH, Calif. — Chipotle Mexican Grill is ending its foray into the fast-casual market with the closure of Farmesa Fresh Eatery, a healthy restaurant concept launched as a spinoff in 2023. The decision comes as rumors spread on social media about the potential bankruptcy and closure of all Chipotle locations, which the company has firmly denied.

Farmesa aimed to provide customers with a menu inspired by Chipotle’s signature approach to fresh ingredients. Operated through a Santa Monica food hall, the location featured customizable bowls with premium proteins, grains, and a selection of sauces all curated by James Beard Award-winning chef Nate Appleman. Despite this innovative concept, the restaurant failed to gain traction, leading Chipotle to refocus on strengthening its core brand.

“We have decided to close Farmesa and concentrate on what we do best — our Chipotle restaurants,” said Chipotle CEO Scott Boatwright during a recent earnings call. Since its inception, Farmesa struggled to differentiate itself from the extensive competition in California‘s health-focused dining market, where brands like Sweetgreen and Cava already have a strong presence.

After just a year and a half, Farmesa was unable to achieve the recognition needed to thrive. Many customers did not associate the brand with Chipotle, which is primarily known for its burritos and high-calorie offerings, creating a marketing challenge that the company could not overcome.

Social media users initially became concerned about the company’s stability after a misleading report from a Spanish media outlet circulated, erroneously suggesting Chipotle would be closing all locations in 2025. Chipotle promptly addressed these claims, asserting that the company is thriving and expanding.

“False information stemmed from an inaccurate online article confusing Chipotle with a venture it tested in 2023,” Chipotle spokesperson Erin Wolford clarified on Saturday. “We anticipate opening between 315 to 345 new restaurants this year.” The company reported a 14.6% revenue increase from 2023, with projections of continued growth and success in its original restaurant model.

Chipotle’s fourth-quarter earnings report revealed a notable financial upward trajectory, boasting zero debt and over $2 billion in cash reserves. Following the Farmesa closure, experts suggest that the company might benefit from concentrating on its main line of business rather than branching into new concepts without proven demand.

Farmesa was designed to offer health-conscious options inspired by Chipotle’s ‘Food with Integrity’ philosophy. However, after its short-lived run, Chipotle’s focus will shift back to expanding its widely recognized restaurant format, which remains popular among customers touting the brand’s commitment to fresh ingredients.