We have all become used to hearing headlines about AI. It’s coming for tech jobs; it’ll replace designers, accountants, architects and artists. You may have read some of our previous posts about robotics and other technology making its way into the food service industry but frankly, a lot of that seemed very far off.
Follow the Money
But a quick glance at Chipotle’s recent earnings summary might convince you that AI is already here and is dramatically changing the direction of the industry.
First, we must recognize that Chipotle is one of the fastest-growing restaurants in the country. In 2022 it opened 236 new restaurants and plans to open 255-285 new restaurants this year.
Next, if you don’t know it, in April 2022, Chipotle established the Cultivate Next Venture Fund. Chipotle is leveraging its success to help those who might help Chipotle, and even in announcing the new venture fund, they indicated the importance of automation for the future of the company. From Cultivate Next’s official announcement:
“We are exploring investments in emerging innovation that will enhance our employee and guest experience, and quite possibly revolutionize the restaurant industry,” said Curt Garner, Chief Technology Officer, Chipotle. “Investing in forward-thinking ventures that are looking to drive meaningful change at scale will help accelerate Chipotle’s aggressive growth plans.”
As a digital leader, Chipotle recently began testing an artificially intelligent robot, Chippy, to cook its tortilla chips, as well as radio-frequency identification (RFID) to trace and track ingredients in its restaurants. These steps are to both drive efficiencies and enhance the human experience. Chipotle is also leveraging a new scheduling tool that uses machine learning to build more effective schedules and last year, made an investment in a leading autonomous delivery company, Nuro.
It’s Here!
Chipotle began testing its AI chip maker, “Chippy” last spring. Chippy: The robot is trained to replicate Chipotle’s exact recipe—using corn masa, flour, water and sunflower oil—to cook chips, season with a dusting of salt and finish with a hint of lime juice. It also is trained to ensure the output mirrors in the brand’s current product, delivering slight variations in flavor.
Chipotle has also integrated machine learning into its scheduling process. Potentially more revolutionary is their plan to start testing a new automated makeline made by Hyphen – a company that is another beneficiary of investment from the Cultivate Next Venture Fund.
Hyphen’s product is called the Makeline:
…and it’s an automated system that uses advanced robotics and a customized operating system to fulfill food orders. The Makeline can handle all digital orders under the counter, out of view of the customers, while staff continue to assemble in-house orders on top of the counter.
Hyphen features thousands of sensors and uses artificial intelligence to make sure orders are put together correctly. No beef when you ordered chicken and no unwieldy globs of guacamole that overpower your burrito bowl. The machine also prints customers’ names and orders directly on the packaging to further ensure there are no mixups. Hyphen also lets employees know when it’s running low on ingredients and it rotates plates so every dish looks neat and tidy when it pops out.
Is Automation The Answer to Labor Shortages?
While all of the companies involved paint the picture that all the automation is strictly about giving employees extra time for customer service, it clearly allows fewer employees to do more of the work. Chipotle’s interest in promoting technology in its earnings report rings a bell for investors that shows that the company believes it can be more profitable with more new technology and then show that business will be less affected by future labor issues.
It’s Not Just Chipotle
And lest you think that Chipotle is an anomaly, Del Taco has announced that they are increasing the use of AI at the drive-thru.
Del Taco started testing last year and will now “significantly expand” its use.
The technology, it explains, is able to greet guests, accept orders and suggest add-ons before sending the order to the point of sale and kitchen display system.
While testing the AI-powered voice assistant, Del Taco says that more than 95% or orders were completed with zero staff intervention.
Amid widespread labor challenges, Del Taco is far from the only chain to test the AI waters. Checker and Rally’s, too, has turned to AI for drive-thru assistance while select chains have tapped to AI to answer the phones.
Others, like Wing Zone, are now partnering with robotics companies to find labor efficiencies on the cookline.
No, Really… it’s Here!
The pandemic provided huge challenges to the food-service industry. The industry responded by accelerating its push toward automation. For those businesses that are big enough, they want to ensure they’ll never be at the mercy of dramatic labor issues again. Chipotle has answered that vision by creating a dedicated venture fund.
There is no doubt that the food-service industry will look dramatically different five years from now versus five years ago due to the integration of AI and advanced automation.
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