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• The robot can cut, core, and peel an avocado in 26 seconds.
• Avocados are an important part of the guacamole salad, a popular item on Chipotle's menu.
• Minimum wage in California, where the company has launched its robot, is $20 per hour.

Chipotle Mexican Grill (CMG) is transforming the restaurant business with its introduction of collaborative robots (cobots) aimed at streamlining food preparation.

The company recently unveiled its newest innovation, the ‘Autocado’ robot, at select locations in California.

Designed to automate the tedious process of cutting, coring, and peeling avocados, this robot is set to transform how the popular restaurant chain prepares its signature guacamole.

The move signals Chipotle’s broader commitment to leveraging automation to enhance both customer experience and operational efficiency while navigating rising labor costs.

How the Autocado works
 

The Autocado robot automates the avocado preparation process, which has traditionally required significant manual labor.

In just 26 seconds, the robot can cut, core, and peel an avocado, helping the company process its enormous demand for the fruit.

Chipotle uses around 5.18 million cases of avocados annually, and the Autocado robot is designed to handle avocados of varying sizes, adjusting its operations based on the fruit’s dimensions.

While the robot doesn’t fully automate guacamole production, it significantly reduces the time and labor required for this task, allowing staff to focus on more critical areas like customer service.

Curt Garner, Chief Customer and Technology Officer of Chipotle, noted that these cobotic innovations “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.”

Augmented makeline and digital orders
 

In addition to the Autocado, Chipotle is also deploying its Augmented Makeline technology, which automates the assembly of salads and bowls.

This innovation helps streamline digital orders, which make up about 65% of the company’s online sales.

By focusing automation on the most frequently ordered items, Chipotle ensures a consistent experience for its online customers while freeing up employees to concentrate on in-store orders, such as tacos and burritos.

The result? A faster, more efficient food preparation process for both in-store and digital orders, which ultimately leads to an improved customer experience across all platforms.

Employees, no longer bogged down by time-consuming tasks, can focus on providing better service to physical guests, thus enhancing Chipotle’s overall brand experience.

Chipotle stands to increase its profit margins
 

The introduction of the Autocado robot comes as Chipotle experiments with automation in regions where labor costs are significantly high.

In California, where minimum wages have risen from $16 to $20 per hour as of April, the company is testing the robots in select locations.

These high wages create an incentive for companies like Chipotle to invest in automation, potentially reducing their labor costs while improving operational efficiency.

Although Chipotle frames its technological innovations as efforts to enhance the guest experience, the financial implications are undeniable.

Automation could lead to substantial cost savings for the company, especially as wages continue to rise.

By reducing the need for manual labor, Chipotle stands to increase its profit margins, making automation an appealing strategy for shareholders.

Will automation drive a Chipotle bull run?
 

If the trials of the Autocado robot and Augmented Makeline prove successful in California, Chipotle could expand the use of these technologies across more of its locations.

This would not only streamline operations but also allow the company to better manage labor costs in an increasingly competitive industry.

Should the company’s investments in automation lead to noticeable improvements in its financial performance, Chipotle’s stock will likely see a positive impact, potentially leading to a bull run.

As Chipotle continues to explore new ways to enhance both the customer experience and operational efficiency, the future of automation in fast food seems increasingly promising.

Chipotle’s introduction of the Autocado robot represents a significant step forward in the fast-food industry’s embrace of automation.

By focusing on improving efficiency and reducing labor costs, Chipotle is positioning itself as a leader in the digital transformation of the restaurant business.

As labor costs rise, automation may become a key driver of profitability, making Chipotle’s foray into robotics a development worth watching for investors and industry insiders alike.

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