Chipotle sidesteps Newsom's minimum wage law and rolls out two 'robot employees' at its California restaurants

In response to the minimum wage increase to $20 an hour implemented by California Governor Gavin Newsom, some Chipotle restaurants in the state have started new workers: two robots.

The first machine, called "autocado," can peel, cut and pit avocados, transforming them into guacamole in as little as 26 seconds. The second, dubbed as "augmented makeline," has the ability to assemble salads and bowls based on orders received through the mobile app.

Rising labor costs

These robots are part of an automation strategy that Chipotle executives see as key to decreasing the number of employees and addressing rising labor costs, according to a report from The Daily Mail. At the moment, these machines are operating at restaurants in Huntington Beach and Corona del Mar:

"Chipotle Mexican Grill (NYSE: CMG) announced today Autocado, its avocado processing cobotic prototype developed in partnership with Vebu that cuts, cores, and peels avocados before they are hand mashed to create the restaurant's signature guacamole, and the Augmented Makeline, a cobotic makeline built in collaboration with Hyphen, are being tested in Chipotle restaurants for the first time. Autocado is currently operating at Chipotle's Huntington Beach, Calif. location at 20972 Magnolia St and the Augmented Makeline is being utilized at the company's Corona del Mar (CDM), Calif. location at 3050 East Coast Hwy," the company said in a statement.

The company assured that expansion of these machines to other restaurants will depend on feedback from both staff and customers. Curt Garner, chief customer and technology officer, said in a statement:

"These cobotic devices could help us build a stronger operational engine that delivers a great experience for our team members and our guests while maintaining Chipotle's high culinary standards. ... Optimizing our use of these systems and incorporating crew and customer feedback are the next steps in the stage-gate process before determining their broader pilot plans."

Chipotle executives anticipate that the augmented makeline will free up a great deal of employee time, given that approximately two-thirds of the orders they receive are for salads and bowls.

Newsom's pay raise triggers massive layoffs

The controversial increase in the minimum wage to $20, which was enacted by Governor Gavin Newsom and took effect April 1, has triggered mass layoffs and the permanent closure of some businesses. Other chains, such as Burger King, have already reduced the number of cashiers by implementing self-service checkouts at their California locations.