Chipotle Mexican Grill, Inc. (NYSE:CMG) has teamed up with Hyphen, a food service platform, to test an automated digital makeline designed to assemble bowls and salads. This innovative system, developed by Hyphen, utilizes intelligent automation and collaborative robot (cobotic) technology. The testing of this automated system is taking place at the Chipotle Cultivate Center in Irvine, California.
With approximately 65% of Chipotle’s digital orders consisting of bowls or salads, the cobotic digital makeline plays a vital role in streamlining operations. It allows Chipotle employees to concentrate on the front makeline, providing excellent customer service and increasing the digital order capacity, particularly during peak periods. This automation also enhances order accuracy, leading to an improved guest experience.
The automated digital makeline assembles bowls and salads by moving the entrées along the bottom makeline, where ingredients are automatically dispensed according to the order. Simultaneously, a Chipotle team member can use the top makeline to prepare burritos, tacos, quesadillas, and kid’s meals for the same digital order.
This strategic move reflects Chipotle’s commitment to leveraging robotics to enhance its workforce’s capabilities and ensure exceptional dining experiences. The company aims to make the automated digital makeline a central feature in all Chipotle restaurants’ digital kitchens.
Focusing on Digitalization
Chipotle is actively expanding its digital program to drive growth, and the partnership with Hyphen highlights its commitment to robotics collaboration. This approach enables the company to focus on other culinary tasks in the restaurant without compromising the quality and taste of its offerings. During the second quarter of 2023, digital sales accounted for 38% of Chipotle’s total sales.
Chipotle invested in Hyphen through its $50 million venture fund, Cultivate Next. This fund supports aligned companies that contribute to Chipotle’s mission to “Cultivate a Better World” and fuels its growth plans. Chipotle seeks innovations in farming, supply chain, robotics, and alternative proteins. The company has also invested in Vebu, a product development company that has created the Autocado, a cobotic prototype for avocado processing, enhancing menu items like guacamole.
Chipotle’s shares have gained 32.9% this year, outperforming the industry’s 3.6% decline. The company’s strong comparable restaurant sales growth, digital initiatives, Chipotlane expansions, menu innovations, and focus on digital sales have contributed to its robust performance. Additionally, the rise in menu prices, new restaurant openings, and higher restaurant-level operating margins have further driven the company’s success.
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