Chipotle (CMG) is rolling out a major change at select stores that may finally put an end to customer complaints about skimpy food proportions.
The Mexican fast-food chain is testing two robots that will help prepare food at a few locations in California, a test run that could potentially expand to other locations across the country.
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In a new press release, Chipotle revealed that its new robot, Augmented Makeline, will help prepare food for digital orders, which mostly consists of bowls or salads.
The robot is expected to improve “employee efficiency and digital order accuracy” as it uses “automated technology to build bowls and salads,” which will allow Chipotle employees to focus more on making “burritos, tacos, quesadillas, and kid’s meals.”
The new technology’s unveiling comes after a recent Wells Fargo study revealed that food portion sizes in burrito bowl orders at Chipotle restaurants across New York City varied significantly. The study found that the heaviest bowls weighed 87% more than the smaller ones for digital orders.
Customers have also fiercely criticized the restaurant on social media in recent months for “skimping” on ingredients.
chipotle is always skimping on the ingredients 🤬🤬🤬 #chipotle#chipotlewalkout
In July, Chipotle CEO Brian Niccol revealed that the company found that 10% of its restaurants had “outlier portion scores” and that those locations will undergo training, and generous portion sizes will be reemphasized across all restaurants.
Chipotle also announced in the press release that it will test out its new Autocado robot, which “cuts avocados, removes their skin, and separates their fruit through an automated process” in 26 seconds. Chipotle claims this will also free up a lot of time for workers, giving them more room to focus on prepping other food items and assisting customers.
Related: Chipotle test confirms customers’ suspicions about portion sizes
“These robotic devices could help us build a stronger operational engine that delivers a great experience for our team members and our guests while maintaining Chipotle’s high culinary standards,” said Chipotle Chief Customer and Technology Officer Curt Garner in the press release. “Optimizing our use of these systems and incorporating crew and customer feedback are the next steps in the stage-gate process before determining their broader pilot plans.”
Chipotle’s new tech comes after minimum wage increases
The new robots from Chipotle (which will be tested in California) also come after California raised the minimum wage for fast-food employees to $20 per hour on April 1. In response to the change, Chipotle revealed during an earnings call in April that its wages in California increased by nearly 20%, and it had to resort to increasing its menu prices.
An employee prepares food at a Chipotle Mexican Grill restaurant on April 26, 2023 in Austin, Texas. Chipotle Mexican Grill posted strong quarterly earnings.
“In April, minimum wage in California for restaurant companies like ours increased to $20 an hour,” said Chipotle Chief Financial Officer Jack Hartung during the earnings call. “As a result, our wages in California went up by nearly 20%, and we subsequently took a 6% to 7% menu price increase in our California restaurants just to cover the cost in dollar terms.”
According to a recent report from the Roosevelt Institute, the fast-food industry has more than enough money to afford California’s increased minimum wage as profits have increased due to multiple price hikes in recent years.
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“According to the data, there’s no reason why the new fast-food minimum wage of $20 per hour in California should mean layoffs or increased prices,” said Alí Bustamante, a co-author of the Roosevelt Institute’s report. “Profits in the fast-food industry are sufficiently high to absorb the greater operating costs and ensure industry workers are paid fairly.”
Despite recent setbacks, Chipotle appears to be seeing a financial boost. According to Chipotle’s most recent earnings report, it saw a roughly 18% year-over-year increase in revenue during the second quarter of 2024 as comparable restaurant sales rose by about 11%.
Chipotle shares were up more than 2.8% at last check Monday.
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