Chipotle launches a Virtual Farmers Market for its sustainable food suppliers
Can I get an e-sample of that orange slice?... The Sunday Farmers Market has an online cousin. Guac legend Chipotle launched a digital farmers market for its food suppliers (the same ones that grow the organic rice for your bowl):
- Direct-to-consumer farm: Chipotle is starting with four farmers that it's been working with for over a decade. It'll pay for their new Shopify-powered digital storefronts for two years. It's also helping them develop the four websites.
- DIY Chipotle bowl: The Farmers Market homepage tells you which Chipotle product each farmer supplies (e.g. Petaluma Creamery makes the shredded Monterey cheese for your burrito, Niman Ranch grows the pork for your Carnitas bowl).
No such thing as a free (Chipotle) lunch... Chipotle is shelling out guac to cover its suppliers' Shopify fees. The benefit to farmers is clear — the benefit to Chipotle is more nuanced:
- Farmers get: A free way to sell food online while the pandemic decimates in-person sales at the restaurants they normally supply. American farmers have had to destroy millions of pounds of fresh food on fallen demand from restaurants, hotels, etc.
- Chipotle gets: Good PR. Chipotle's whole thing is "Food with Integrity.” With these online shops, Chipotle is tackling the problem of food waste while propping up sustainable farms. But that's not all...
Chipotle wants supply chain insurance... Chipotle’s competitive advantage is its ability to scale with sustainable ingredients at fast-casual prices. Without a reliable supply, Chipotle suffers — During its last food-born illness outbreak, Chipotle had to completely change its pork supplies (carnitas bowls were literally canceled temporarily). Now, it's helping suppliers survive corona-conomy by bankrolling websites.