Chipotle Introduces 'Autocado' Robot To Streamline Guacamole Preparation At Select California Locations

Benzinga
2024.09.17 10:31
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Chipotle Mexican Grill has introduced two new robotic prototypes, Autocado and the Augmented Makeline, at select California locations to enhance operational efficiency. Autocado automates avocado processing for guacamole, while the Augmented Makeline streamlines bowl and salad preparation. These innovations come amid legal challenges and leadership changes, including the recent departure of CEO Brian Niccol. Despite these issues, experts view Chipotle as a strong investment opportunity.

Chipotle Mexican Grill CMG unveiled two new collaborative robotic prototypes designed to work alongside humans to improve efficiency. The prototypes, Autocado and the Augmented Makeline, have been introduced at select California locations on Tuesday.

What Happened: Autocado is a robot that processes avocados by cutting, coring, and peeling them before they are hand-mashed into guacamole. This prototype is currently being tested at Chipotle’s Huntington Beach, California, according to Chipotle’s press release.

The Augmented Makeline, developed in collaboration with Hyphen, is being trialed at Chipotle’s Corona del Mar, California. This collaborative robotic, or “cobotic” system automates the preparation of bowls and salads, which comprise approximately 65% of Chipotle’s digital orders.

“These cobotic devices could help us build a stronger operational engine,” said Curt Garner, Chief Customer and Technology Officer at Chipotle. The company aims to optimize these systems based on crew and customer feedback before broader implementation.

Chipotle’s Cultivate Next venture fund, which has invested in Vebu and Hyphen, supports these innovations. The fund aims to accelerate Chipotle’s growth plans, including the goal to operate 7,000 restaurants in North America.

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Why It Matters: Chipotle’s latest technological advancements come at a crucial time for the company.

In August the National Labor Relations Board accused Chipotle of unlawfully withholding pay raises from unionized employees. This legal issue arose from claims that Chipotle informed workers in Lansing, Michigan, that they would not receive raises given to other employees because they had unionized.

Additionally, Chipotle experienced a significant leadership change. Brian Niccol the former CEO of Chipotle recently left the company and joined Starbucks Corp. in the first week of September, prompting the company to expedite the appointment of Adam Rymer as CFO. This transition is set to take place on Oct. 1.

Despite these challenges, some experts still see Chipotle as a strong investment opportunity. Stephanie Link, Chief Investment Strategist & Portfolio Manager at Hightower Advisors, noted that Chipotle remains a compelling buy despite a recent stock decline after Niccol’s departure.

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Photo courtesy: Chipotle

This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote

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