Chipotle adds automation, 'autocado' robot helps make guacamole

(Reuters) - Chipotle (NYSE:CMG ) 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 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 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.

(This story has been refiled to fix the spelling to 'autocado' in the headline)

Source: Investing.com