As California’s $20-an-hour minimum wage hikes hit the fast-food industry, companies like Chipotle are turning to automation to offset the growing cost of labor. The popular Mexican food chain is now testing an automated bowl-and-salad maker, as well as an avocado-processing robot, in two California locations. This move could be a game-changer for fast-food businesses battling rising wage pressures in the Golden State.
Chipotle announced the new technology deployment on Monday, signaling that it’s open to expanding automation depending on customer feedback. Both locations are in California, where the state’s far-left policies continue to squeeze businesses with unprecedented labor costs. Fast-food chains like Chipotle are trying to adapt to survive in this hostile economic environment, and automation may be their ticket out.
It’s no coincidence that Chipotle’s automated systems are being tested in California, where labor costs have skyrocketed thanks to the state’s relentless push for wage increases. The $20 minimum wage is already the highest in the country, and many expect even more hikes in the future. The Fast Food Workers Union is already advocating for a further increase to $20.70 in 2025 to “keep up with inflation.”
Chipotle has made it clear that its move toward automation is part of an effort to “help our restaurant employees continue providing great hospitality for our guests.” But make no mistake: the fast-food giant, like many other chains, is looking for ways to reduce its reliance on an increasingly expensive workforce.
Chipotle’s automated bowl-and-salad maker, dubbed the “augmented makeline,” is already in operation at its Corona Del Mar location. This machine automatically dispenses ingredients like rice, corn, and lettuce into bowls, which account for 65% of Chipotle’s digital orders. Meanwhile, its “autocado” technology, which cuts, cores, and peels avocados, is now being tested in Huntington Beach.
These innovations are part of a broader trend among fast-food chains, many of which are turning to automation to stay competitive amid rising labor costs. Other California-based chains like Sweetgreen and Jack-in-the-Box have also embraced similar technology, investing in startups that promise to revolutionize the industry with robots handling tasks traditionally done by human workers.
The introduction of automation is just one of the ways companies like Chipotle are responding to California’s wage mandates. Earlier this year, the company raised its menu prices by 7% across the state to offset the higher cost of labor. While automation could help reduce the need for such increases in the future, it’s clear that these wage hikes are already affecting consumers’ wallets.
This is a prime example of how California’s misguided policies are harming not just businesses, but also everyday Americans. With the cost of labor continuing to rise, prices for food and other services are likely to keep climbing, putting more strain on families struggling with inflation.
While Chipotle insists that its employees will continue to perform other tasks, such as making burritos and monitoring machine quality, it’s undeniable that automation is poised to take on a larger role in the fast-food industry. With machines able to handle repetitive tasks like making salads or peeling avocados, companies can significantly reduce labor costs while maintaining—if not improving—efficiency.
Peter Saleh, an analyst at BTIG, has already said that Chipotle’s move toward automation could “propel [the company] well ahead of its competition.” The question now is how quickly other chains will follow suit as labor costs continue to spiral out of control in places like California.
In a state that already employs more fast-food workers than any other, the writing is on the wall: automation isn’t just the future—it’s a necessity for survival. As long as California continues to push anti-business policies and drive up the cost of labor, more companies will be forced to adopt similar technologies or risk going under.
California’s relentless wage hikes are forcing companies like Chipotle to turn to automation as a means of survival. While this technology may bring some benefits, such as faster service and more consistent quality, it’s a clear sign that the state’s labor policies are making it harder for businesses—and consumers alike—to thrive. At the end of the day, the real cost of these misguided policies will be felt by everyone who pays more for their food and watches human jobs disappear.
