On Tuesday, The U.K. Daily Mail posted an article explaining how Chipotle is dealing with the new minimum wage requirements for fast-food establishments in California. This is not surprising and should give legislators in all states a reason to pause before changing the minimum wage laws.
The article reports:
Chipotle has introduced two robots that can take over tasks normally done by its workers.
The ‘autocado’ can peel, stone and cut an avocado for guacamole in 26 seconds. Meanwhile, a ‘digital makeline’ portions up salads and bowls based on orders on the app.
The machines are part of an automation drive that Chipotle bosses hope will cut down the number of workers needed – slashing rising labor costs.
So, it is no surprise they are being put to use first in two of the Mexican chain’s restaurants in California, the company announced on Monday.
Recent legislation raised the minimum wage for fast food workers to $20-an-hour in the state.
The controversial wage hike – $4 more than the minimum wage in the state for any other job – was introduced by California Governor Gavin Newsom at chains with more than 60 locations in the US, and came into effect on April 1.
Chains including Burger King have already ramped up the roll out of digital ordering kiosks to cut the number of cashiers needed in Californian restaurants.
It is not yet clear how the production costs of using Chipotle’s new machines compares to human labor when making Chipotle menu items.
Also, robots don’t call in sick or require vacations or sick days.
The article concludes:
Chipotle’s sales this year beat Wall Street expectations – boosted by price hikes and a jump in loyal customers.
But the company has come under fire for its reported varying portion sizes.
It prompted Chipotle’s then CEO Brian Nicol – who has now moved to Starbucks – to deny that he had instructed staff to scrimp with servings as he revealed the company will be instituting changes to ensure satisfaction.
He revealed Chipotle will be retraining its staff to ensure ‘generous portions’ are consistent across its more than 3,500 stores.
Last month, Wells Fargo analyst Zachary Fadem and his team tested the theory that Chipotle has been skimping on its usually-large portions, after a series of videos posted to TikTok showed employees barely filling their burrito bowls.
The team ordered and weighed 75 bowls – all with the same ingredients – from eight locations across New York City.
They discovered that the consistency of the burrito bowls varied widely from restaurant to restaurant. Some locations served bowls that weighed up to 33 percent more than others, the study found.
Even without the minimum wage hikes, fast food is another victim of Bidenomics.