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Chipotle adds automation, 'autocado' robot helps make guacamole
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Chipotle adds automation, 'autocado' robot helps make guacamole
Sep 16, 2024 12:32 PM

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.

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