A robot named 'Chippy' is being tested by Chipotle for making tortilla chips.

• Miso Robotics is collaborating with Chipotle's culinary and technology teams to personalize its newest robotic device, Chippy, for preparing and seasoning the restaurant's tortilla chips.
• The company is utilizing the "stage-gate process" for testing and learning from employees and customers before deciding on a national rollout for Chippy.
• Burgers are being prepared by Miso Robotics' robots at White Castle, while wings are being tested at Buffalo Wild Wings using the same technology.

The company is testing a new autonomous kitchen assistant to handle cooking one of its core menu items, tortilla chips.

Miso Robotics is collaborating with the company's culinary and technology teams to develop a customized version of its "Chippy" device, which is designed to cook and season Chipotle's chips with salt and fresh lime juice. With the help of artificial intelligence, Chippy is trained to accurately replicate the recipe.

Chipotle is currently testing a robot named Chippy at its innovation hub in Irvine, California. The robot will be used in a restaurant in Southern California later this year. The company is utilizing its "stage-gate process" to test and gather feedback from employees and customers before deciding whether to launch a national rollout of Chippy.

Chipotle's Chief Technology Officer, Curt Garner, stated that the idea for using technology and AI to predict when restaurants might run out of chips during the day originated when the company began considering ways to improve the process. Additionally, workers find it challenging to leave the make line to fry more chips during peak times. Employing technology could streamline the process and reduce its monotony.

Garner revealed in an interview with CNBC that when our team asked for suggestions on improving the restaurant's menu, the top recommendation was to develop a more efficient method for making chips.

Miso Robotics’ Flippy 2 chicken-wing-making robot and Chippy share some similarities, including the same arm and frame, CEO Mike Bell stated. The company's robots are also utilized at White Castle for burgers and were tested at Inspire Brands' Buffalo Wild Wings for wings.

The challenge was ensuring it got Chipotle’s chip recipe down correctly.

Bell stated in an interview that this brand values freshness and believes that everything must be made with great care. They had their culinary team visit their facility for blind taste testing, which resulted in high marks. However, getting past their team was a significant challenge for them.

The cost of Miso's robots can reach $3,000 per month, and they are currently being piloted and tested by top restaurant chains. Chipotle has not disclosed the amount of money invested in the project as it is still in its early stages.

Chipotle is not seeking to replace its workers with Miso, but rather to streamline their jobs, as stated by Garner.

Garner stated that the team remains in a strong position regarding labor. Instead of focusing on solving a labor issue, the team aimed to enhance the work experience by making it more enjoyable, rewarding, and efficient. The team aimed to delegate tasks that members disliked and allow them more time to concentrate on their preferred tasks.

Garner stated that Chipotle is exploring technological solutions for various aspects of its business, including the use of AI with its concierge chatbot, Pepper, on its website and app. Additionally, the company made an investment in Nuro, a SoftBank-backed autonomous delivery vehicle start-up, in March 2020.

Garner suggested that tasks such as washing dishes could be suitable for automation in the future, in addition to exploring new technologies and optimizing the company's digital kitchens. Last quarter, digital sales accounted for 41.6% of the company's total sales.

On Tuesday, Chipotle's stock closed down 1.47%, and it has decreased by 14.5% year to date.