Chipotle testing avocado-peeling 'cobots' or collaborative robots

By Steve Gelsi

Restaurant chain launches pilot programs for both its Autocado and Augmented Makeline

Chipotle Mexican Grill said Monday it is currently testing its Autocado prototype, which it calls a cobot, or collaborative robot, at a restaurant in Huntington Beach, Calif.

Chipotle (CMG) is also testing its kitchen-operations cobot called Augmented Makeline, built in collaboration with Hyphen, in a store at Corona del Mar, Calif.

Curt Garner, Chipotle's chief customer and technology officer, said the 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."

Chipotle said it has invested an undisclosed amount of money into Vebu, the maker of the Autocado device and Hyphen from its $100 million venture-capital fund, Cultivate Next, which launched in 2022.

Chipotle's stock was up 2% on Monday morning.

Chipotle's move comes as rival Sweetgreen Inc. (SG) has been rolling out salad-making automation at its restaurants.

Sweetgreen's Infinite Kitchen robotic food preparation unit will help boost profit margins by 0.7% to 1.4% per year from 2025 to 2029, TD Cowen analyst Andrew M. Charles said in an upgrade of the salad chain to buy from hold earlier this month.

Infinite Kitchen's "superior unit economics...can be reinvested back into lowered price points to enter markets that were previously deemed unfit for the brand," Charles said at the time.

Meanwhile, Chipotle has been searching for a new chief executive after Brian Niccol was hired to lead Starbucks Corp. (SBUX) starting this month.

Also read: Restaurants are struggling as price increases backfire. But these chains are feeling pretty good.

-Steve Gelsi

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09-16-24 0943ET

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