CHIPOTLE DEBUTS AUTOCADO AND THE AUGMENTED MAKELINE BY HYPHEN IN RESTAURANTS

Rhea-AI Summary

Chipotle Mexican Grill (NYSE: CMG) has introduced two cobotic innovations in its restaurants: Autocado and the Augmented Makeline. Developed in partnership with Vebu, Autocado processes avocados for guacamole preparation, while the Augmented Makeline, created with Hyphen, automates bowl and salad assembly for digital orders.

These cobots aim to enhance operational efficiency and customer experience. Autocado, currently operating in Huntington Beach, CA, processes an avocado in about 26 seconds. The Augmented Makeline, tested in Corona del Mar, CA, focuses on the 65% of digital orders that are bowls or salads.

Both innovations are part of Chipotle's $100 million Cultivate Next venture fund, which invests in strategically aligned companies to support Chipotle's growth plans of 7,000 North American restaurants.

Positive

• Introduction of Autocado and Augmented Makeline cobots to improve operational efficiency
• Potential to enhance customer experience and maintain high culinary standards
• Autocado processes avocados in 26 seconds, potentially saving significant time in food preparation
• Augmented Makeline focuses on 65% of digital orders (bowls and salads), improving efficiency and accuracy
• Strategic investments through $100 million Cultivate Next venture fund to support growth plans

Negative

• None.

Technology Analyst

Chipotle's introduction of Autocado and the Augmented Makeline marks a significant leap in restaurant automation. These cobotic systems address key operational challenges:

• Autocado's 26-second avocado processing could dramatically reduce prep time for Chipotle's 129.5 million pounds annual avocado usage.
• The Augmented Makeline's focus on bowls and salads, which comprise 65% of digital orders, should enhance efficiency and accuracy.

While promising, the true test lies in scalability and ROI. The stage-gate process will be important in determining wider implementation. If successful, these innovations could set a new standard for fast-casual dining efficiency.

Financial Analyst

Chipotle's investment in automation through its Cultivate Next fund is a strategic move to address labor challenges and operational efficiency. Key financial implications include:

• Potential reduction in labor costs, particularly in food prep areas.
• Improved order accuracy could lead to higher customer satisfaction and potentially increased sales.
• Initial capital expenditure for implementation may be significant, but long-term benefits could outweigh costs.

Investors should watch for metrics on throughput improvements, labor cost reductions and customer satisfaction scores in future earnings reports to gauge the success of these initiatives.

Restaurant Industry Expert

Chipotle's cobotic innovations address critical pain points in fast-casual dining:

• Autocado tackles the labor-intensive, often inconsistent avocado prep process.
• The Augmented Makeline targets digital order efficiency, a growing segment for restaurants.

These technologies could be game-changers if they consistently deliver on speed and quality. However, the human touch in food preparation is still valued by many consumers. Chipotle's challenge will be balancing automation with the perception of freshness and craftsmanship that has been central to its brand. The success of these initiatives could influence automation trends across the entire restaurant industry.

• The company's cobots (collaborative robots) are assisting crew members in Chipotle restaurants for the first time
• Through its Cultivate Next venture fund, Chipotle has invested in Vebu, a product development company that has co-created Autocado, and Hyphen, a foodservice platform that automates kitchen operations and has co-developed Chipotle's Augmented Makeline

NEWPORT BEACH, Calif., Sept. 16, 2024 /PRNewswire/ -- Chipotle Mexican Grill (NYSE: CMG) announced today Autocado, its avocado processing cobotic prototype developed in partnership with Vebu that cuts, cores, and peels avocados before they are hand mashed to create the restaurant's signature guacamole, and the Augmented Makeline, a cobotic makeline built in collaboration with Hyphen, are being tested in Chipotle restaurants for the first time. Autocado is currently operating at Chipotle's Huntington Beach, Calif. location at 20972 Magnolia St and the Augmented Makeline is being utilized at the company's Corona del Mar (CDM), Calif. location at 3050 East Coast Hwy.

Photos and B-roll video of Autocado and the Augmented Makeline can be accessed here: https://www.dropbox.com/scl/fo/kjcz5fjv6xun2l7z8zygm/ANVzEjOguvkF172YcyMhlp0?rlkey=00jmgufel1ku0fzftwckse5i0&st=dkaus6e0&dl=0.

"These cobotic 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 Curt Garner, Chief Customer and Technology Officer. "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."

Autocado Continues Through the Stage-Gate Process  
Vebu and Chipotle worked closely with Certified Training Managers from Chipotle's restaurants to analyze the company's preparation process and identify tasks that are time consuming and less favorable among crew members. In the Huntington Beach restaurant where Autocado is operating, crew members can focus on assisting with other food prep items and delivering exceptional hospitality to guests while Autocado cuts avocados, removes their skin, and separates their fruit through an automated process. On average, it takes Autocado approximately 26 seconds to fully flesh out the fruit inside an avocado. In Chipotle locations across the U.S., Canada, and Europe this year, the company is expected to use approximately 5.18 million cases of avocados, equivalent to 129.5 million pounds of fruit. 

The current iteration of Autocado features an updated design and size agnostic avocado processing abilities, meaning that the machine recognizes variability in the fruit and automatically adjusts itself to accommodate the size of the avocados being loaded.

Enhancing Digital Ordering with the Augmented Makeline
Chipotle's Augmented Makeline, created in collaboration with Hyphen, uses automated technology to build bowls and salads while Chipotle employees operate the top makeline to make burritos, tacos, quesadillas, and kid's meals. Approximately 65% of all Chipotle digital orders are bowls or salads, so the Augmented Makeline can improve employee efficiency and digital order accuracy, ensuring a more consistent experience for digital guests.  

Cultivate Next
Chipotle has invested in Vebu and Hyphen through its $100 million Cultivate Next venture fund. Introduced in 2022, Cultivate Next makes early-stage investments into strategically aligned companies that further Chipotle's mission to Cultivate a Better World and help accelerate the company's aggressive longer term growth plans to operate 7,000 restaurants in North America.

Companies interested in collaborating with Chipotle through the Cultivate Next venture fund can apply by emailing cultivatenext@chipotle.com.

About Chipotle
Chipotle Mexican Grill, Inc. (NYSE: CMG) is cultivating a better world by serving responsibly sourced, classically-cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. There are over 3,500 restaurants as of June 30, 2024, in the United States, Canada, the United Kingdom, France, Germany, and Kuwait and it is the only restaurant company of its size that owns and operates all its restaurants in North America and Europe. Chipotle is ranked on the Fortune 500 and is recognized on Fortune's Most Admired Companies 2024 list and Time Magazine's Most Influential Companies. With over 120,000 employees passionate about providing a great guest experience, Chipotle is a longtime leader and innovator in the food industry. Chipotle is committed to making its food more accessible to everyone while continuing to be a brand with a demonstrated purpose as it leads the way in digital, technology and sustainable business practices. For more information or to place an order online, visit www.chipotle.com.

About Vebu
Vebu is a full stack Automation, Robotics, and Intelligence company focused on building technology solutions for and with the broad food industry. With a partner driven team of experts spanning engineering, robotics, artificial intelligence, and product development, Vebu is building products to help humans do more. Vebulabs.com.

About Hyphen
Hyphen is a foodservice platform designed to help restaurant owners, operators, and budding chefs move their business forward by automating kitchen operations. Visit Usehyphen.com for more information on Hyphen and its team.

 

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SOURCE Chipotle Mexican Grill

FAQ

What are Autocado and Augmented Makeline at Chipotle (CMG)?

Autocado and Augmented Makeline are cobotic (collaborative robot) innovations introduced by Chipotle. Autocado processes avocados for guacamole, while the Augmented Makeline automates bowl and salad assembly for digital orders.

Where are Chipotle's (CMG) new cobots being tested as of September 2024?

Autocado is being tested at Chipotle's Huntington Beach, California location, while the Augmented Makeline is being utilized at the Corona del Mar, California location.

How long does it take Autocado to process an avocado at Chipotle (CMG)?

On average, it takes Autocado approximately 26 seconds to fully flesh out the fruit inside an avocado at Chipotle.

What percentage of Chipotle's (CMG) digital orders are bowls or salads?

Approximately 65% of all Chipotle digital orders are bowls or salads, which is why the Augmented Makeline focuses on these items.

What is Chipotle's (CMG) Cultivate Next venture fund?

Cultivate Next is Chipotle's $100 million venture fund introduced in 2022 to make early-stage investments in strategically aligned companies that support Chipotle's growth plans and mission.