On January 1, 2022, the California minimum wage increased to $16. Then, on April 1, 2024, the minimum wage for most fast-food workers went to $20 an hour. In the rest of the USA, most fast-food workers make between $12 and $15.
The result has been a surge in California fast-food restaurants shutting down, reducing staff, and raising prices for the consumer.
After the $20 an-hour law went into effect, Chipotle raised California prices by 7%. Chipotle is now testing two robotic machines that will reduce the labor needed.
One of Chipotle’s big draws is its fresh guacamole, which is made on-site. One of the new robots, the Autocado, peels avocados, eliminating over half the labor involved in this process.
Another robot being tested is the Cobot, which assembles salads and “burrito bowls.” The machine can take orders directly from digital kiosks and automatically create the item. Chipotle is also testing automatic deep fryers for its tortilla chips. McDonald’s, White Castle, and others are testing these same machines in various cities.
Chipotle currently employs over 100k people nationwide.
