By Lea Mira, RTN staff writer - 9.17.2024
Chipotle Mexican Grill is taking its automation ambitions from the lab to the restaurant, with the in-store testing of two innovative technologies: the Autocado, an avocado processing machine, and an automated makeline. These pilot programs, launched in California this week, represent a significant step forward in Chipotle’s quest to leverage technology for increased efficiency, enhanced customer experience, and potentially, significant labor cost savings.
Unveiled in July of last year, The Autocado, developed in partnership with Vebu, is being tested at a Chipotle location in Huntington Beach. This “cobotic” (collaborative robotic) machine is designed to automate the time-consuming process of cutting, coring, and peeling avocados, a task that Chipotle employees have reportedly found less than desirable. The Autocado can process an avocado in just 26 seconds, significantly faster than manual methods. Considering Chipotle estimates it will use over 5 million cases of avocados this year across its 3,500+ locations, the potential for labor and cost savings is substantial.
Meanwhile, the automated makeline, created in collaboration with Hyphen, is being tested at a Chipotle in Corona Del Mar. This technology automates the assembly of bowls and salads for digital orders, which account for a significant portion of Chipotle’s business – approximately 65% of all orders. The makeline is designed to improve order accuracy and speed, particularly for digital customers, while freeing up employees to focus on other tasks, such as preparing burritos, tacos, and quesadillas. This is especially important as digital orders, particularly for bowls, continue to rise.
These pilot programs are the culmination of significant investment by Chipotle in restaurant technology. The company’s $100 million Cultivate Next venture fund, launched in 2022, has backed both Vebu and Hyphen, demonstrating Chipotle’s commitment to exploring and implementing innovative solutions. The scale of this investment underscores the company’s belief in the potential of automation to transform its operations and address rising labor costs, a major challenge for the restaurant industry.
Chipotle is also upgrading its enterprise resource planning (ERP) system with Oracle to improve data management and operational efficiency. There is no discounting the importance of having a centralized ERP system for companies with significant scale. The new system will enable Chipotle to gain better visibility and control over its supply chain operations.
The in-store testing of the Autocado and automated makeline will provide valuable real-world data on the performance and efficiency of these technologies. Chipotle plans to gather feedback from both employees and customers, focusing on factors like speed, accuracy, ease of use, and impact on the overall dining experience, before making decisions about broader rollout plans.
These initiatives are part of a broader technology-driven strategy at Chipotle, which includes other innovations like Chippy, an automated tortilla chip maker, and implementation of a kitchen management system that uses machine learning to optimize ingredient freshness and minimize food waste. The system utilizes machine learning to optimize ingredient freshness and minimize food waste. The system analyzes real data as well as food operations simulation data to create algorithms designed to optimize performance and “accelerate deployment of intelligent devices.” The technology also reduces overhead costs and food waste by allowing restaurants to more accurately predict demand at any given time. The company is also currently testing a dual-sided grill to speed up cooking times for chicken and steak, with plans to roll out the new grills to 74 restaurants this year.
And there’s more: In May, the company implemented radio frequency identification (RFID) tags across its supply chain. These smart barcodes automatically identify and track inventory, a technology commonly used in retail but novel in the restaurant industry. Chipotle is reportedly the first restaurant chain to adopt RFID technology on this scale. Beyond RFID, Chipotle is also enhancing its supply chain technology with platform from Oracle. The company is developing a project called “supplier visibility,” which integrates various technologies to provide comprehensive insights into inventory, shipments, and supplier information. This project aims to offer a complete view of the supply chain, from raw materials to finished products.
By embracing automation and other cutting-edge technologies, Chipotle aims to address key challenges facing the restaurant industry, such as rising labor costs, increasing demand for digital ordering, and maintaining consistency and quality at scale. The company’s commitment to innovation positions it as a leader in the evolving fast-casual landscape, where technology is playing an increasingly vital role in shaping the future of dining.
