After it was revealed that Chipotle’s California-based spin-off chain Farmesa Fresh would be shutting down, rumors swirled that the Mexican chain was in financial trouble
Chipotle confirmed they are not closing down (
Image: Getty Images)
A wild rumor that Chipotle is shutting its doors for good has been circulating on social media lately causing confusion and panic among loyal customers.
News spread quickly over the past week that Chipotle had filed for bankruptcy, sparking a slew of online conversations about the success of the chain in recent years. As it turns out, the rumor was totally false. Chipotle was not impressed, releasing a statement that read: “The false information stemmed from an inaccurate online article confusing the Mexican chain with a venture it tested in 2023. The story has since been corrected,”
The story stemmed from a report by a Madrid publication, which wrote that Farmesa Fresh – a Chipotle invested business venture – was closing down.
Like most rumors do, the story quickly gained traction online after people suggested the closure of the spin-off chain might signal the end of Chipotle too.
Farmesa Fresh launched in 2023, as a new restaurant concept based on healthy dishes and high-quality proteins. It operated from a ghost kitchen model, where customers could order through digital kiosks such as UberEats and similar platforms.
Chipotle’s fresh eatery concept, Farmesa, was abandoned recently ( Chipotle)
However, the chain failed to properly take off, and Chipotle CEO Scott Boatwright 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 US and worldwide.
So fans of the tex-mex restaurant shouldn’t worry – the notion that the Chipotle chain is in danger is totally false. In fact, Chipotle has some major plans for expansion this year. According to Delish, they are planning to open 300 more stores.
The chain is also aiming for 80% of their locations to operate a ‘Chipotlane,’ offering a drive thru service where they traditionally had not.
The brand is also expanding their menu. Just recently, they introduced Chipotle Honey Chicken which is expected to stick around for a while.
Chipotle, which was always known for its generous portions, have faced backlash in recent years about cutting down. Customers are claiming they are no longer getting the same ‘bang for their buck’ as prices are consistently rising and portions are getting smaller.
The good news is, the chain confirmed that Trump’s tariffs will not affect their prices. Chipotle CEO Scott Boatwright told NBC News that the company plans not to raise menu prices for the time being, even if imported goods cost more.
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