Chipotle's New Ceo Is Trying To Keep Robots Out Of Your Burrito Assembly Line

Customers order food at a Chipotle Mexican Grill restaurant in Austin, Texas.

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• Chipotle's CEO Scott Boatwright said he values the human touch in the chain's assembly lines.
• He said automation will likely be contained "in the digital system only."
• The chain has been criticized for delivering inconsistent portions to customers.

Chipotle's CEO wants to make sure your burrito is made by hand for as long as possible.

In a podcast interview with Yahoo Finance's "Opening Bid," released on Friday, host Brian Sozzi and CEO Scott Boatwright discussed topics including automation and modernization at Chipotle.

Boatwright, who became the fast food chain's interim CEO in November after his predecessor Brian Niccol left to lead Starbucks, said Chipotle intends to "leverage that automation in the digital system only."

"We still believe the best way to Chipotle is down the line with a team member, highly customized, great variety, big beautiful burritos and bowls down the line," he added.

Boatwright said human interaction is "a core equity of the Chipotle brand."

The brand has dipped a toe into automation: Last July, it announced that it had tapped a robot called "Autocado" to cut, core, and peel avocados, reducing the amount of time needed for the task by half.

It also announced a partnership with Hyphen, a San Jose-based food technology startup. In 2023, the startup told BI that its robotics could crank out up to 180 bowls per hour, six times more than human workers' capabilities.

Criticism over portion sizes

The chain was criticized this year after analysts accused it of skimping on portion sizes.

In June, Fortune reported that Wells Fargo analysts had ordered 75 burrito bowls from eight different locations in New York City and weighed them to check for consistency.

The analysts wrote that among the bowls ordered in-store, the heaviest bowl weighed 47% more than the lightest.

Danilo Gargiulo, a senior analyst of restaurants at AllianceBernstein, told BI in July that using robots in the assembly line would not be a good solution for portion control, as the in-store experience was "part of the secret sauce of Chipotle."

"It's part of the experience of consumers to go there, check out what they have, and ask a person, 'Hey, can I have a little bit more, please?' Or mix up the ingredients as you wish," Gargiulo said.

In the last fiscal quarter, Chipotle reported that its commitment to ensuring consistent portions had taken a toll on its profitability.

"The benefit of last year's menu price increase was more than offset by inflation across several items, most notably avocados and dairy, as well as higher usage as we focused on ensuring consistent and generous portions," CFO Adam Rymer said on the earnings call on October 29.

Boatwright's comments come as restaurants and fast food chains, including Sweetgreen and White Castle, increasingly use robots to handle human tasks. Amid the robotization of the industry, though, some leaders have expressed hesitation about rolling out the red carpet for robots.

When asked by Yahoo Finance about whether he wants to increase automation in Shake Shack, the chain's CEO Danny Meyer said: "Personally, I don't."

"I think when it comes to making the product, there's something about the human touch, smashing that burger, seasoning the burger, flipping the burger, knowing exactly when it is time to come off, where not any two burgers at Shake Shack taste exactly the same," Meyer added in an "Opening Bid" episode on December 4.

Chipotle's shares were trading at $64.60 on Monday. Its stock is up about 41% from the start of the year.

Chipotle representatives didn't respond to a request for comment from BI.