The CEOs of Din Tai Fung think robots would ruin their iconic soup dumplings
The chain's chiefs say making their iconic pork dumplings, with their precise 18 folds, is delicate work.
A machine making them would mean "sacrificing heavily on the quality," CEO Aaron Yang told BI.
Din Tai Fung thinks robots aren't good enough to make their iconic pork soup dumplings.
The Taiwanese chain's North America CEO, Aaron Yang, said Din Tai Fung's xiao long baos, which are known for being pleated at the top with exactly 18 folds, are "very, very delicate." Yang, 33, leads the company alongside his brother, Albert Yang, 32.
And they make a lot of them — Din Tai Fung sells an average of 10,000 handmade xiao long baos every day at each of its North American outlets, the chain told BI. It has over 173 outlets in 13 countries, including the US, Canada, and the UK.
"The way we make the skins, they're paper thin yet strong enough to hold the soup inside," said Yang.
"We are just very uncompromising about quality," he said. "We've seen machines make soup dumplings, and you're definitely sacrificing heavily on the quality."
Yang said their compromise with automation in the kitchen was to deploy it in areas where "it doesn't affect quality," like having a little robot helping the staff run to deliver orders.
"In New York, our kitchen is pretty far away from the takeout area. So we actually have a little robot that runs back and forth delivering the finished takeout bags from the kitchen to the front," he said.
Before the robot was deployed, one person walked back and forth in the restaurant throughout the day.
The human touch
Din Tai Fung's take on automation is in line with that of other chains like Chipotle and Shake Shack, which have both largely kept machines out of the kitchen for the time being.
"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," Chipotle's CEO, Scott Boatwright, said on an episode of Yahoo Finance's "Opening Bid" podcast that aired in December.
Boatwright added that human interaction is "a core equity of the Chipotle brand."
Chipotle di, tap a robot called" Autocado" in July 2023 to cut, core, and peel avocados, reducing the amount of time needed for the task by half.
Shake Shack's CEO, Danny Meyer, said in a December episode of "Opening Bid" that he did not plan to increase automation in his chain.
"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 said.
Starbucks is taking a similar approach, leaving the crafting of drinks to their baristas but rolling out an AI tool that helps baristas remember drink recipes.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Post
5 hours ago
- New York Post
Chipotle customer uncovers receipt from 2015 — here's how much prices have changed in a decade
You used to get more bang — and burrito — for your buck. Fast food fans are fuming over inflation after a Chipotle customer uncovered a receipt from July 2015, showing how much the chain's prices have changed in just a decade. 'Found a receipt under my dishwasher from exactly 10 years ago,' the Chicago resident wrote on a recent Reddit post. 'Found a receipt under my dishwasher from exactly 10 years ago,' the Chicago resident wrote on a recent Reddit post. Reddit/u/herrinfold It showed that he spent $21.45 before tax on two chicken bowls and one chicken burrito with guacamole. The itemized receipt revealed that the bowls and the burritos each cost $6.50, while a side of guac was $1.95. Reddit users were quick to calculate how much the same order would amount to today, with one person using an online ordering system at the same location for a fair and accurate breakdown. A chicken bowl now costs $9.35, while a chicken burrito is the same price. A side of guacamole is currently $2.75. Thus, the order that cost $21.45 in July 2015 would cost $30.80 today, before tax — an increase of 43.58%. The Redditor claimed that those costs were 'about CPI' — a reference to the Consumer Price Index, which measures the change over time in the prices paid for goods and services. Reddit users were quick to calculate how much the same order would amount to today, with one person using an online ordering system at the same location for a fair and accurate breakdown. AP However, most viewers were angered by the cost of living in 2025. '$11 difference is crazy,' one wrote. 'Ugh take me back to 2015.' '2 bowls and a burrito for THAT price!?' another exclaimed. 'Where has the time gone haha. Have I been so conditioned to accept this inflation that I can't even remember how cheap stuff was just 10 years ago!!??!!??' 'I miss when it didn't cost $20 per person for a meal,' another nostalgically noted. While fast food is now more expensive than ever across the US, different places pay different prices for the same items. A recent study from WalletHub determined which states spend the greatest percentage of their income on fast food purchases. People who live in Mississippi pay more for fast food when compared to their relative income than anyone else in the country, the analysis found.
Yahoo
7 hours ago
- Yahoo
Is Chipotle Mexican Grill (CMG) Trading at an Attractive Price?
Parnassus Investments, an investment management company, released the 'Parnassus Mid Cap Growth Fund' first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Growth Index fell 7.12% in the first quarter, starting with a continuation of the late 2024 rally but later experiencing a sharp decline. The Fund (Investor Shares) fell -9.98% (net of fees) in the quarter, compared to the Russell Midcap Growth Index's -7.12% fall. Stock selection in Consumer Discretionary and Industrials contributed to the relative performance, while Communication Services and Health Care detracted. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Parnassus Mid Cap Growth Fund highlighted stocks such as Chipotle Mexican Grill, Inc. (NYSE:CMG). Chipotle Mexican Grill, Inc. (NYSE:CMG) owns and operates Chipotle Mexican Grill restaurants. The one-month return of Chipotle Mexican Grill, Inc. (NYSE:CMG) was 8.50%, and its shares lost 7.32% of their value over the last 52 weeks. On July 3, 2025, Chipotle Mexican Grill, Inc. (NYSE:CMG) stock closed at $57.07 per share, with a market capitalization of $76.894 billion. Parnassus Mid Cap Growth Fund stated the following regarding Chipotle Mexican Grill, Inc. (NYSE:CMG) in its Q1 2025 investor letter: "We also added four competitively advantaged, highly profitable and market-share-gaining companies whose stocks had sold off due to what we view as transitory issues. Chipotle Mexican Grill, Inc. (NYSE:CMG) continues to gain share in fast casual thanks to its strong value proposition. A chef plating up a wide variety of dishes for a restaurant chain. Chipotle Mexican Grill, Inc. (NYSE:CMG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held Chipotle Mexican Grill, Inc. (NYSE:CMG) at the end of the first quarter, which was 83 in the previous quarter. In the first quarter of 2025, Chipotle Mexican Grill, Inc.'s (NYSE:CMG) sales grew over 6% to reach $2.9 billion. While we acknowledge the potential of Chipotle Mexican Grill, Inc. (NYSE:CMG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains. In another article, we covered Chipotle Mexican Grill, Inc. (NYSE:CMG) and shared the list of best consumer discretionary stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of CMG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
CNBC
7 hours ago
- CNBC
Fast-casual restaurants lean on loyalty programs to offset consumer pullback
As some consumers pull back on spending amid economic uncertainty, fast-casual restaurant chains are leaning on rewards programs to pull them back in. Loyalty programs, which offer discounts or added perks for returning customers, have transitioned from being a nice bonus for restaurants to a must-have. As cost-cautious diners prioritize value, brands like Chipotle, Starbucks, Cava and others are utilizing rewards to keep customers coming back and building habits that go beyond the occasional coupon. "In tough times, loyalty programs become more essential," said Peter Fader, a marketing professor at the Wharton School at the University of Pennsylvania. "They become a required ingredient to building and maintaining relationships." In the 12 months ended in May, the restaurant industry only saw monthly traffic increase once, in November, according to Black Box Intelligence data. As diners visit restaurants less frequently, sales struggle. Only 43% of restaurant brands tracked by Black Box reported same-store sales growth in May. Consumers who join loyalty programs visit restaurants more frequently, making 22% more visits per year to eateries, according to Circana data. They also frequent the brands that they belong to at twice the rate of nonmembers, the market research firm found. Coffee giant Starbucks reported 34.2 million active rewards members in its second quarter and said more than 59% of its U.S. company-owned transactions came from those members. Potbelly has seen similar success: In the first quarter of 2025, over 42% of its total shop sales came from digital business, which includes the loyalty program users. Chipotle has over 20 million active rewards members. It's loyalty program makes up approximately 30% of sales on average each day and helped the burrito chain to avoid major price hikes, according to the company. "We have really strong brand loyalty among our members," Nicole West, Chipotle's vice president of digital experiences, told CNBC. "We're really focused on engaging with our members and doing that in a way that really resonates with them." Driving loyalty is critical for the likes of Chipotle and Starbucks. In the first quarter, Chipotle posted a same-store sales decline for the first time since 2020 and said it saw a "slowdown" in consumer spending. Meanwhile, Starbucks' same-store sales have fallen for five straight quarters. Cava is bucking industry trends with strong sales growth, but faces Wall Street pressure to maintain its rapid expansion. As rewards programs pick up steam, more brands are getting creative and moving beyond the value meal. Cava revamped its rewards program in October 2024 to give customers more flexibility in how they earn and use points. Members can earn points each visit and redeem them for specific items like pita chips or full entrees. The program also includes limited-time offers and in-app challenges. In late March, the company celebrated National Pita Day by rolling out a mascot named "Peter Chip" and offering members complimentary pita chips. "Guests like to see periodic surprises and delight moments where we can reward them with pita chips or other brand offerings," Andrew Rebhun, Cava's chief marketing officer, said The Cava Rewards program now has more than 7 million members. A new tiered system is expected to launch soon, according to Rebhun. Chipotle this year launched a seasonal campaign called "Summer of Extras." The campaign is giving away over $1 million in free burritos, encouraging customers to rack up visits and compete to become the top Chipotle visitor in their state. "We continue to see activations in this program build and excitement and positive reaction across social media from our fans," West said. "We just continue to focus on delivering value to them in ways through programs where customers are given opportunities to 'plus up' their points or earn specific offers by exhibiting specific behaviors." Salad chain Sweetgreen also retooled its loyalty program this spring, moving away from its tiered subscription program that many consumers found confusing. "In a challenging industry environment where consumers are making more intentional choices with every dollar, SG Rewards is designed to meet the moment by delivering a meaningful value," Sweetgreen co-founder and CEO Jonathan Neman said on the company's quarterly conference call in May. Even Starbucks, an established leader in rewards programs, has made changes. In June, the coffee chain ended its 25-star reusable cup bonus and replaced it with double stars across the full purchase. While the change was controversial among loyalists, who claimed the earning potential was reduced, the coffee chain said participation has remained steady. Of course, giving free rewards comes with tradeoffs. Promotions cut into profits in an industry that faces tight margins in the best of times. Restaurant chains hope those freebies drive longer-term loyalty and spending on full-price items. Brands navigating economic pressure are seeing that loyalty programs are helping to drive visits. Potbelly revamped its loyalty system in early 2024, moving to a coin-based structure that allows customers to redeem rewards faster and across more items. Customers now have access to over 14 menu items through the rewards program. This flexibility has led to more frequent visits, Potbelly's chief marketing officer, David Daniels, said. "We saw a lift almost immediately in terms of engagement," Daniels said. "The response has been incredibly positive." Chicago-style eatery Portillo's joined the loyalty game in March with "Portillo's Perks." Instead of using a traditional app, the program utilizes a digital wallet system and focuses on frequency. It tracks how often a customer visits and awards badges as they go. "It gives flexibility to change how the program is deployed," Garrett Kern, Portillo's vice president of strategy and culinary, said to CNBC. "It doesn't require a redesign and relaunch to an application. It was a great way for us to get the program out there in a branded and easy-to-use way." The company is aiming for 1.5 million to 1.7 million sign-ups by mid-summer.
