Chipotle Mexican Grill (NYSE: CMG) announced today that farmers in its supply chain could launch improved versions of their e-commerce sites with the help of Shopify (NYSE: SHOP). With the development or improvement of individualized online markets, vendors can sell meat, dairy and grain products and other items directly to consumers throughout the United States.
The fast casual restaurateur said he is assisting in the development of each provider’s website by covering hosting fees on Shopify for two years and supporting the design and development of direct-to-consumer storefronts, according to a press release.
Suppliers participating in the Chipotle virtual farmers market. Image source: Chipotle.
The move comes when farmers are dealing with massive disruptions to the supply chain as a result of the COVID-19 pandemic. There has been a significant drop in demand due to the closure of restaurants, schools and hotels. This initiative is designed to help support Chipotle’s top suppliers by developing new sources of revenue and offering them additional ways to sell their products directly to consumers.
Each of the initial four vendors (Niman Ranch, Petaluma Creamery, McKaskle Family Farm, and Meister Cheese) has worked with Chipotle for more than a decade. Their storefronts can be accessed at farmermarket.chipotle.com.
“It can be intimidating for many family farms to change the way they do business, so we are providing our suppliers with the right tools and resources to successfully launch improved e-commerce platforms,” said Chris Brandt, director of marketing for Chipotle . “Our Food with Integrity values begin with our farmers, and helping them adapt to new technologies and ways to reach the consumer is crucial for both the future of the agricultural industry and for Chipotle.”
For Shopify, this is the latest move to add to the growing list of merchants on their platform. Earlier this month, Walmart (NYSE: WMT) partnered with him to open his market to Shopify merchants in a move to help him better compete with the e-commerce leader Amazon.com.
