Chipotle and Cava team up to dodge minimum wage hikes … and its bad news for workers
Chipotle and Cava have jointly invested $25 million in Hyphen, a California robotics company that builds 'digital makelines' to assemble bowls and salads without human hands.
The setup looks normal to customers. At the counter, staff scoop toppings from bins to serve walk-in diners face to face.
But below the counter, hidden from view, Hyphen's robot glides bowls along a track, stopping under each bin so precise portions drop in for online or app orders.
The machines can't roll burritos at Chipotle or assemble pita wraps at Cava, but they can quietly churn out a steady stream of burrito bowls, salads, and grain bowls without human hands.
The push comes as California's fast-food minimum wage has jumped to $20 an hour, Meanwhile, ten other US states — along with 48 cities and counties — now have a minimum wage above $15 an hour.
Restaurant bosses are wary of raising menu prices after years of hikes caused by higher food and labor costs.
Instead, they're finding ways to shrink payrolls — and labor, being the biggest expense, is the first place they're looking.
Several other chains are in talks with Hyphen to adopt its systems.
Meanwhile, 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.
Wendy's, IHOP, Chipotle, and Sweetgreen are also integrating AI into their operations. Yum Brands, Taco Bell's owner, launched AI voice recognition in 500 drive-thrus.
Chipotle has launched another innovation: the Autocado, a robotic machine that peeled, sliced and pitted avocados.
Restaurant bosses see AI and automation as essential tools for protecting profit margins amid rising wages.
For workers and unions who fought for years for higher pay, it's a bitter twist critics had long warned about: automation taking the jobs they fought to make livable.
After California's new law came into effect in April last year, staff at Pizza Hut and Round Table said they lost their jobs after bosses said they could not afford to pay it.
Meanwhile, workers also complained of getting fewer hours - and some workers have been laid off.
Chipotle has two robots in its stores - the Hyphen system to produce bowls and salads and the Autocado to prepare avocadas
'We're always looking for ways to innovate and make life easier for our in-restaurant teams,' Cava's CEO Brett Schulman said.
Cava will roll out the robot system in the next quarter.
Schulman says the investment will aid its workers by making online orders, and not replace staff.
In a statement to the Daily Mail, Chipotle says it uses Hyphen to 'build bowls and salads while Chipotle employees operate the top makeline to make burritos, tacos, quesadillas, and kid's meals.'
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