California Raises Minimum Wage, Chipotle Chooses Robots Over Paying Wages

By Tere Scott | Friday, 30 September 2022 03:45 PM
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California just passed a minimum wage bill. In response, Chipotle restaurant in California is testing a robot to keep making their tasty chips in place of a high-paid worker. The robot test is an effort to combat the bill Gavin Newson (D-CA) signed.

AB 257 legislation creates a “Fast Food Council” responsible for drafting “sector-wide minimum standards on wages, working hours, and other working conditions.” The bill comes one year after government lockdowns forced many California restaurants to close their doors.

Anticipating the new laws, the Mexican restaurant previously tested its new robotic device at its technology innovation facility. Chipotle named the device “Chippy.”

Chipotle Chief Technology Officer Curt Garner said, “We are always exploring opportunities to enhance our employee and guest experience.” He continued, “Our goal is to drive efficiencies through collaborative robotics that will enable Chipotle’s crew members to focus on other tasks in the restaurant.” According to a press release, Chipotle is testing Chippy at a restaurant in Fountain Valley, California. Chippy is an autonomous kitchen assistant designed by Miso Robotics. If successful, Chippy will receive a national implementation strategy.

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Chipotle reportedly moved to test Chippy following Newsom signing legislation to create the “Fast Food Council,” which targets chains with 100 or more locations across the United States. The bill requires restaurants to raise minimum wages to $22 per hour. The wage increase is more than 40 percent from the $15.50 per hour minimum wage expected to take effect in 2023. Last year, Chipotle raised their workers’ pay to between $11 and $18 per hour.

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Chipotle is not alone in its complaints about the minimum wage bill. McDonald’s United States President Joe Erlinger has also been critical of the bill. He said, “It has a uniquely negative impact on large chains.” He said, “It imposes higher costs on one type of restaurant while sparing another.”

Chipotle, In-N-Out Burger, and Yum Brands have joined forces to raise money to lobby against the bill.

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