Chipotle has found a clever way to beat California’s $20-an-hour wages – and it is not good news for staff
Chipotle has introduced two robots that can take over tasks normally done by its workers.
The ‘autocado’ can peel, stone and cut an avocado for guacamole in 26 seconds. Meanwhile, a ‘digital makeline’ portions up salads and bowls based on orders on the app.
The machines are part of an automation drive that Chipotle bosses hope will cut down the amount of workers needed – slashing rising labor costs.
So, it is no surprise they are being put to use first in two of the Mexican chain’s restaurants in California, the company announced on Monday.
Recent legislation raised the minimum wage for fast food workers to $20-an-hour in the state.
Chipotle’s avocado processing robot has been moved from testing to restaurants
The controversial wage hike – $4 more than the minimum wage in the state for any other job – was introduced by California Governor Gavin Newsom at chains with more than 60 locations in the US, and came into effect on April 1.
Chains including Burger King have already ramped up the roll out of digital ordering kiosks to cut the amount of cashiers needed in Californian restaurants.
It is not yet clear how the production costs of using Chipotle’s new machines compares to human labor when making Chipotle menu items.
It is also not yet apparent how many items the digital assembly line can make per hour compared to staff.
However, Chipotle argued that using the machines was not just about ‘efficiencies’ but also about the consistency of its menu items.
In July, the company – with almost 3,400 US locations – admitted that widespread customer complaints about varying portion sizes between stores were valid.
Since two in three of the chain’s orders are for salads and bowls, executives believe the digital makeline could free up a considerable amount of staff time.
Questions have previously been raised about the safety of the digital makeline while it was in the testing stage.
A promotional video released last year showed chopped ingredients bouncing out of bowls and into the machine, which some questioned as a potential hazard.
‘Our food safety and operation teams have worked closely with our technology teams to assure that the design takes into account things like cleaning, speed and accuracy,’ CEO Brian Niccol said on a July earnings call.
‘There’s a lot of things going on back at house to make us more effective culinary-wise, prep-wise, which then sets us up to be successful consistently.’
The makeline has also been introduced to two restaurants in California
The machines will drive efficiency and meal size ‘consistency’ according to Chipotle
The Mexican chain said feedback from staff and customers will determine if it continues to rollout the new machines to further restaurants.
Chipotle has bet big on tech advancements, investing $100 million into its Cultivate Next fund.
The fund gives money to partner companies to develop machinery to hopefully one day be used at scale in its restaurants or supply chain.
Chipotle’s sales this year beat Wall Street expectations – boosted by price hikes and a jump in loyal customers.
But the company has come under fire for its reported varying portion sizes.
It prompted Chipotle’s then CEO Brian Nicol – who has now moved to Starbucks – to deny that he had instructed staff to scrimp with servings as he revealed the company will be instituting changes to ensure satisfaction.
He revealed Chipotle will be retraining its staff to ensure ‘generous portions’ are consistent across its more than 3,500 stores.
Last month, Wells Fargo analyst Zachary Fadem and his team tested the theory that Chipotle has been skimping on its usually-large portions, after a series of videos posted to TikTok showed employees barely filling their burrito bowls.
The team ordered and weighed 75 bowls – all with the same ingredients – from eight locations across New York City.
They discovered that the consistency of the burrito bowls varied widely from restaurant to restaurant. Some locations served bowls that weighed up to 33 percent more than others, the study found.
