Hell Yeah, Chipotle's AI Takeover in 2025: A Game-Changer!
AI streamlines Chipotle's expansion by accelerating the process of opening new restaurants at unprecedented speed.
Michael Landsberg, CIO of Landsberg Bennett Private Wealth Management, delves into AI investment on 'Making Money'. In the fast-food realm, Chipotle's boss Scott Boatwright shares some fiery insights on AI, ahoy at the outlet's COO summit.
Boatwright spills the beans that Chipotle plans to unleash a new restaurant almost every day this year, amid the chain's exponential growth spiral[1]. The guy's fired up about the massive need for skilled, passionate, and cash-flush individuals to keep the Chipotle brand flourishing like never before[1].
A Chipotle joint's signage in Manhattan, NYC, USA, scorches the scene in February '22. (Andrew Kelly / Reuters)
Boatwright brags that Chipotle's AI-packaged Ava Cado hiring tool has snipped hiring time by a whopping 75%[1]. This bad boy talks to candidates, answers their burning questions, collects essential data, sets up interviews, and flings off job offers like a top-notch recruitment slinger[1].
Now, brace yourself: Ava Cado's part of Chipotle's sizzling AI recruitment system, which the company cooked up in October '24 via a business bash with Paradox[1][2]. Ava Cado whips through tasks such as engaging with candidates, answering queries, collecting info, scheduling interviews, and offering jobs to candidates greenlit by bosses[1].
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Here's a shocker for ya: Boatwright suspects swifter hiring times help Chipotle keep its restaurants staffed and nab the best talent the industry's got to offer[1].
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Boatwright revealed more about AI during his summit appearance, spitting out that Chipotle zeroes in on eliminating waste and tweaking the employee experience, as opposed to booting humans out the door[1].
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In some Chipotle locations, AI says "Olé" to eager customers with deals offered via its rewards program and customized offers for each customer[1]. By the end of March, there were almost 3,800 Chipotle restaurants globally, with nearly 3,700 in the US[1].
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Chipotle's got an itchy trigger finger, planning to launch 315 to 345 new restaurants in 2025[1]. Around 80% of these newbies will feature a Chipotlane drive-thru pick-up lane[1]. Chipotle drummed up nearly $2.9 billion in total revenue during the first quarter, with net income mushrooming to $386.6 million[1].
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The second-quarter financial results are slated for release in July[1].
| Ticker | Security | Last | Change | Change % || --- | --- | --- | --- | --- || CMG | CHIPOTLE MEXICAN GRILL INC. | 51.80 | 1.18 | 2.33% || Powered By |
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Sources:1. Fortune Magazine2. Paradox3. CNBC4. The Wall Street Journal5. PreciTaste AI
[1]: Artificial Intelligence is propelling Chipotle to attain its ambitious growth targets, expediting the identification of optimal locations and streamlining resource and staff deployment. It's also being used to improve kitchen operations, such as cutting down food waste and optimizing prep schedules, through real-time data analytics and predictive inventory management [5].
[2]: Implementation of AI-powered hiring tools, like Ava Cado, has reportedly lowered the hiring time by about 75% and increased the application completion rate to 85% after AI integration [2][3].
[3]: The integration of AI is not only speeding up operational efficiency and hiring but is also positively impacting investor sentiment, as demonstrated by the moderate price increase in Chipotle's stock following the announcement of AI-driven hiring achievements [3].
[4]: The company has held discussions and votes regarding AI oversight, signaling the growing focus on the ethical and workforce implications of these technologies within the organization.
[5]: Chipotle is piloting PreciTaste's AI-based kitchen management system in select Southern California locations, which helps staff anticipate ingredient usage and reduce over-prepping [5].
- Michael Landsberg, on his show 'Making Money', discusses the potential of investing in AI, with a focus on the technology's impact on businesses like Chipotle.
- Chipotle's AI-powered recruitment tool, Ava Cado, has reduced hiring times by 75%, revolutionizing the company's recruitment process.
- The implementation of AI in Chipotle's operations, including hiring and kitchen management, is not only improving operational efficiency but also positively influencing investor sentiment, as evidenced by a moderate increase in the company's stock price.
- Chipotle plans to open 315 to 345 new restaurants in 2025, with a significant number featuring a Chipotlane drive-thru pick-up lane, as the company continues to leverage AI to achieve its ambitious growth targets.
