Sept 16 (Reuters) - Chipotle moved an automated
bowl-and-salad maker and an avocado-processing robot out of its
test kitchen and into a couple of locations in California.
The chain announced the deployment on Monday and said
feedback will determine whether it makes a broader rollout of
the technology.
Both locations are in California, where all fast food chains
must pay $20 an hour to workers with more possible increases on
the horizon. Chipotle said in a statement that it is testing the
technology to find efficiencies and "help our restaurant
employees continue providing great hospitality for our guests."
Many restaurant chains have in recent years rolled out
technology that reduces the need for cashiers, such as
self-service kiosks. Other California-based chains, Sweetgreen ( SG )
and Jack-in-the-Box, have also invested in private tech startups
pitching a vision of burgers, fries and salad bowls made in
large part by robots.
However, generally fast-food workers juggle other tasks like
greeting customers, sweeping the floor and retrieving supplies
from a backroom -- which most robots cannot handle, currently.
Chipotle, which had revenue of nearly $9.9 billion last year,
has not connected automation to the state's wage hike. It has
said employees who work with the automated bowl-and-salad maker
will continue to make burritos and tacos, add side items and
monitor the machines' quality.
The automated bowl-and-salad maker, which Chipotle calls its
"augmented makeline," automatically dispenses rice, corn,
lettuce and other ingredient into a bowl beneath the counter.
Chipotle said 65% of all digital orders are bowls and salads.
"This technology could be a game changer, propelling
Chipotle well ahead of its competition on automation," Peter
Saleh, BTIG analyst, said in a July 25 investor note, referring
to its automated bowl-and-salad maker.
Chipotle said it invested in the technologies through an $100
million venture fund in which it added $50 million in February.
The fund has a stake in Hyphen, a San Jose-based startup founded
in 2020 behind Chipotle's automated bowl-and-salad maker which
is up and running in its Corona Del Mar store.
Sweetgreen ( SG ) has already rolled out a similar automatic
bowl-making machine, opening what it calls "Infinity Kitchens"
in a few locations, including in California.
Chipotle's "autocado" technology, which cuts, cores and
peels avocados before an employee mashes them into guacamole, is
in place in its Huntington Beach location, it said. Made by
Vebu, a Los Angeles-based startup founded in 2022, the machine
processes an avocado in 26 seconds. Chipotle says it goes
through more than 5 million cases of avocados a year.
Previously, Chipotle tested "Chippy," an automated system
that makes seasoned tortilla chips. But the company said
clean-up and set-up costs offset much of its labor savings.
Fast-food chains currently employ more workers in California
than in any other state. After the new minimum wage of $20 an
hour went into effect on April 1, Chipotle raised prices 7% in
the state, executives said in investor calls earlier this year.
For 2025, the California Fast Food Workers Union is seeking
to raise the $20 minimum wage to $20.70 to account for
inflation. On Wednesday, a meeting of the Fast Food Workers
Council heard public comments from many franchisees urging the
council to forego further increases.