Chipotle's AI-Powered Expansion: Opening a New Restaurant Almost Every Day

Chipotle is opening new restaurants at an 'exponential rate.' The CEO says AI is key

Chipotle (CMG) CEO Scott Boatwright said the company is opening up a new location almost every day thanks to AI. Speaking at Fortune's COO Summit, Boatwright credited the company's AI hiring platform, Ava Cado, for enabling it to grow at an "exponential rate." He said the technology cut Chipotle's hiring time by 75%. "This not only helps us keep our restaurant staffed, but ensures we have the best talent that's available in the industry," he said. "If you think about the growth that's ahead of us and the need for highly capable, purpose-driven, value-oriented individuals is more critical today than it probably ever has been for our brand." The company currently has more than 3,700 locations and hopes to bring that number up to 7,000, according to Fortune. Boatwright, who took the helm of Chipotle last year, is all in on AI, saying he believes it belongs at every company. He also insisted it's a tool to make workers more efficient, not get rid of them. "We don't look to replace the human experience, we look to remove waste and expand or enhance the team member experience," he said. The CEO said AI is also helping the restaurant tailor individual deals to patrons, looking at their visit history to see when they might need a discount to entice them to return. A recent report from food service research firm Technomic found that Chipotle expanded 8.1% last year. Chipotle CEO Scott Boatwright said in a February earnings call that part of the company's success rested on "tremendous progress" in expanding its footprint in Europe. The company, though, reported a "slowdown" in consumer spending during the first quarter of 2025, citing customers foregoing restaurant visits to save money along with adverse weather.

Chipotle CEO Says AI Is Fueling Rapid Expansion As Company Aims To Open Nearly 1 Restaurant Every Day In 2025 - Chipotle Mexican Grill (NYSE:CMG)

Thanks to AI, Chipotle Mexican Grill Inc. CMG is set to open nearly one restaurant every day this year, CEO Scott Boatwright announced Monday. What Happened: At Fortune's COO Summit, Chipotle CEO Scott Boatwright said that the company is on track to establish more than 300 new restaurants in 2025. "We will open a new Chipotle restaurant this year almost every 24 hours," he said. The chain currently has more than 3,700 locations, with the goal of operating 7,000 locations across the U.S. and Canada. A major driver behind this speedy rollout is Ava Cado, Chipotle's AI-driven hiring platform introduced in 2024. Boatwright highlighted that the tool has reduced hiring time by 75%, making it faster to staff new locations and identify suitable candidates. "This not only helps us keep our restaurant staffed, but ensures we have the best talent that's available in the industry," he shared. See Also: Americans Are Cooking At Home More Than Ever Since COVID -- And They Want Ingredients That Stretch Their Budget Why It Matters: Despite crediting AI for the company's rapid expansion, Boatwright emphasized the importance of human connection in customer-facing roles. "We don't look to replace the human experience, we look to remove waste and expand or enhance the team member experience," he said. Apart from hiring, AI is also boosting Chipotle's customer engagement. The brand's rewards system uses AI to pinpoint lapsed customers and present personalized deals that escalate over time, prompting return visits based on shopping behavior. With AI in the driver's seat, Chipotle is moving fast, but the CEO reiterates that technology alone will not determine success. "Customers come to Chipotle for the food," Boatwright said, referring to the company's continued focus on quality as it expands. In April, Chipotle posted first-quarter revenue of $2.9 billion, slightly below the $2.95 billion expected by analysts, according to Benzinga Pro. However, the company topped profit forecasts, reporting adjusted earnings of 29 cents per share versus the projected 28 cents. Analysts remain optimistic long-term. Price Action: At the time of writing, Chipotle stocks were trading at $51.19, up 0.12% pre-market. Chipotle scores 91.32 in Growth and 70.48 in Quality, reflecting strong performance in both categories. The company's Momentum rating stands at 23.55, while its Value score is lower at 16.19. For more detailed analysis, check out Benzinga Edge. Read Next: S&P 500 Settles Higher Amid US-China Trade Talks: Investor Sentiment Improves, Fear Index Remains In 'Greed' Zone Photo courtesy: John Hanson Pye / Shutterstock.com CMGChipotle Mexican Grill Inc$51.210.16%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum23.55Growth91.32Quality70.48Value16.19Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Chipotle is using AI to open new locations with astoundingly short...

Artificial intelligence is helping Chipotle rapidly grow its footprint, according to CEO Scott Boatwright. On Monday, Boatwright told Fortune at the outlet's COO summit that the company "will open a new Chipotle restaurant this year almost every 24 hours" amid the chain growing at an "exponential rate." "And if you think about the growth that's ahead of us and the need for highly capable, purpose-driven, value-oriented individuals is more critical today than it probably ever has been for our brand," he said. The company's AI-powered Ava Cado hiring tool has helped shorten the time it takes Chipotle to hire new employees by roughly 75%, Boatwright said, according to the outlet. Ava Cado is part of the AI-infused hiring system that Chipotle unveiled in October 2024 through a partnership with Paradox. Ava Cado's capabilities include talking with candidates, answering their questions about Chipotle, collecting basic information, scheduling interviews for hiring managers and sending offers to candidates who are selected by managers, Chipotle has said. Boatwright said faster hiring times "not only helps us keep our restaurants staffed, but ensures we have the best talent that's available in the industry," according to Fortune. During his summit appearance, he also said that when it came to AI, Chipotle looks to "remove waste and expand or enhance the team member experience" rather than replacing humans, the outlet reported. At Chipotle, AI has also been deployed by the chain to entice customers back to restaurants through deals offered through its rewards program and to customize offers for customers, per Fortune. There were nearly 3,800 Chipotle restaurants globally at the end of March, including nearly 3,700 across the United States, according to the company's first-quarter earnings report. The company aims to launch 315 to 345 new restaurants in 2025, Chipotle has said. During Chipotle's earnings call in April, Boatwright said 80% of those will include a Chipotlane drive thru pick-up lane. Chipotle generated nearly $2.9 billion in total revenue during the first-quarter, a 6.4% increase from the same three-month period last year. Its net income, meanwhile, widened to $386.6 million. Its second-quarter financial results are slated to be released in July.