Dive Brief:
- Chipotle has made a minority investment in Lumachain, an artificial intelligence supply chain platform, and fast casual concept Brassica as part of its $100 million Cultivate Next venture fund, the company said Tuesday in a press release.
- Lumachain is an Australian-based company that tracks the origin, location and condition of food items from farm to table, “enabling reduced waste and increased efficiency.” Brassica is a six-unit, Mediterranean chain based in Ohio.
- Chipotle created Cultivate Next in 2022 to make early-stage investments in companies it says align with its focus on sustainability in addition to helping it reach 7,000 units in North America. The fund’s investments include GreenField Robotics, Hyphen, Local Line, Meati Foods, Nitricity, Vebu and Zero Acre Farms.
Dive Insight:
Chipotle’s investment in Lumachain aligns with its past investments in artificial intelligence and automation. Lumachain uses “Computer Vision AI” to monitor operations in food production plants and improve the quality, efficiency and safety of those plants.
Chipotle’s investments in the robotics firms Hyphen and Vebu led the brand to experiment with an automated makeline and a robotic avocado processor, respectively. The company began testing the technology in stores in September.
The fast-casual chain’s investment in Brassica is its first in a restaurant concept through this fund. Chipotle has tried other concepts in the past, such as its Farmesa Fresh Eatery, which it shut down in April after roughly a year of testing. Brassica is similar to Chipotle in its design; the brand offers front-line ordering and customization. Its menu includes falafel, pita, antibiotic-free meats, roasted vegetables, seasoned fries, vegan tahini, chocolate chip cookies and fresh-squeezed mint pink lemonade.
With the funding, Brassica will scale and open additional locations and enter new markets, Nate Lawton, chief business development officer at Chipotle, said in a statement. The Mediterranean brand was established in 2015 and has slowly expanded. It opened its second Cleveland location and sixth overall at the end of last year.
Chipotle, which is dominant in the Mexican fast casual sphere, may be feeling pressure from Cava. Cava went public last year and has been one of the major restaurant success stories of 2024, with sales up and new openings performing well. By throwing its weight behind an emerging fast casual brand, Chipotle could insulate itself from competition from outside its immediate market segment.
