Chipotle is not shy about innovation and is leaning further into automation and tech.
During its most recent earnings call, CEO Scott Boatwright touched on the company’s strategy to boost productivity behind the counter.
“Sometimes restaurants get behind in the morning and as a result are not properly deployed for the peak period,” Boatwright said during the call. “In addition to consistent training and reps, we also believe our back-of-house equipment innovation will be the next big unlock for more restaurants to complete prep on time and be ready for throughput at peak.”
This includes bringing in produce slicers that can do faster prep and consistent cut sizes for onions, bell peppers and more. “We remain on track to have the produce slicer in all restaurants by this summer,” Boatwright said.
Chipotle is also phasing in a dual-sided plancha grill, a three-pan rice cooker, and a high-capacity fryer. These upgrades are already being tested in 100 restaurants and will be in all new restaurant openings beginning in Q4.
“This will enable our crews to be properly deployed during peaks, driving better throughput and a better guest experience. It will also improve and drive better consistency across culinary, which is key as we continue to scale this great brand,” Boatwright said.
This builds on former investments like the Autocado, an avocado prep system, and its digital makeline.
Chipotle’s Autocado automatically cuts, cores, and peels avocados.
Both of these, however, were recently taken back to Chipotle’s Cultivate Center, its in-house innovation lab, for refinement.
“We continue to make progress with both Autocado and the augmented digital makeline,” said Boatwright. “These are both customized pieces of equipment co-developed by Chipotle and our innovative partners.”
Related: Chipotle Tests ‘Autocado’ A Guacamole Prep Bot
Autocado is now back in a restaurant for further testing and the digital makeline will be back in a restaurant later this summer.
Related: Chipotle to Test Robotic Makelines
Bowls and salads are made by an automated system that dispenses ingredients along the bottom makeline.
Eyeing catering growth
The next growth bet for the burrito hub is catering, which accounts for just 1.5 to 2 percent of total sales. “Yet it is one of the best experiences at Chipotle,” Boatwright said.
But it needs more visibility and infrastructure. So, this fall, the brand is launching a regional catering pilot. It’ll include the full upgraded equipment package, expanded storage, and a new tech stack to help balance orders across nearby locations. A targeted marketing campaign will also run to generate buzz.
It’s also investing in its marketing and loyalty programs. Campaigns like Chipotle BOGO and Chipotle Rewards continue to play an important role.
Chipotle opened 57 new restaurants this year, 46 with Chipotlanes.
It reported mixed results for the quarter. Sales grew just over 6 percent to reach $2.9 billion, while comparable sales declined slightly by 0.4 percent. Digital sales made up 35.4 percent of the total.
