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[1]
Chipotle CEO says AI has cut hiring time by 75% -- it 'ensures we have the best talent that's available'
Scott Boatwright, Chipotle chief executive officer and a member of the board. Land a job interview with Chipotle and you may meet a team member named Ava Cado, who can answer your questions about the company or onboarding. She might email you if your interview goes well. Ava isn't a real person. "Ava Cado" is the name of Chipotle's artificial intelligence hiring platform, built by a recruiting software firm called Paradox. Since its implementation last year, Chipotle has reduced its hiring time by 75%, CEO Scott Boatwright told Fortune on Monday. "This not only helps us keep our restaurant staffed, but ensures we have the best talent that's available in the industry," Boatwright said. The hiring speed could help Chipotle open more than 300 locations this year, a new one "almost every 24 hours," he added. Specifically, the AI hiring platform is built for "chatting 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," according to a Chipotle press release published on October 22. Boatwright took the helm of Chipotle in November, after previously serving as its COO. His company isn't alone: 25% of U.S. organizations use artificial intelligence tools for HR-related purposes, according to a 2024 survey from the Society of Human Resource Management. DON'T MISS: How to use AI to be more productive and successful at work Some of the upsides seem clear: You can automate boring or rote administrative tasks, and provide job seekers with instant answers to their most commonly asked questions. The practice may come with downsides, though. If you're a job seeker hoping to chat with a recruiter, and you're met by a chatbot that can't answer your specific question, you could walk away with a sour impression of the company, notes a Nov. 4 Indeed blog post. AI-enabled hiring could also come with increased cybersecurity risk, if the platform you use retains interview recordings, resumes or other pieces of personal information from job candidates to help the AI learn. Companies that create hiring platforms tend to take data security pretty seriously -- but any data transmitted over the internet from your organization to an AI's learning database has the potential to be exposed. And, as Boatwright noted, using AI to grow a business means little if your product or service isn't good enough for humans to buy. "We don't look to replace the human experience, we look to remove waste and expand or enhance the team member experience," he said, adding: "Customers come to Chipotle for the food." Want to up your AI skills and be more productive? Take CNBC's new online course How to Use AI to Be More Successful at Work. Expert instructors will teach you how to get started, practical uses, tips for effective prompt-writing, and mistakes to avoid.
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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.
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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
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Chipotle: AI Hiring Platform Cuts Hiring Time by 75% | PYMNTS.com
By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. The quick-service restaurant chain has been using the platform -- which was built by recruiting software firm Paradox and dubbed "Ava Cado" by Chiptole -- for a year, CNBC reported Friday (June 13). "This not only helps us keep our restaurant staffed, but ensures we have the best talent that's available in the industry," Chipotle CEO Scott Boatwright told Fortune in an interview posted Monday (June 9), according to the CNBC report. Twenty-five percent of U.S. companies use AI tools to perform tasks related to human resources (HR), the report said, citing data from the Society of Human Resource Management. This technology enables companies to automate repetitive tasks and provide instant answers to job seekers' frequently asked questions, according to the CNBC report. At the same time, AI could leave a bad impression with candidates who had hoped to talk with a recruiter and could create a cybersecurity risk when companies store or transmit job candidates' data, per the report. When Chipotle announced in October that it was rolling out the AI hiring platform to its 3,500 restaurants, the company said the system would free its restaurants' general managers from spending time on collecting candidates' basic information, scheduling interviews and other administrative tasks. "Paradox operates as if we've hired additional administrative support for all our restaurants, freeing up more time for managers to support team members and provide an exceptional guest experience," Chipotle Chief Human Resources Officer Ilene Eskenazi said at the time in a press release. When Paradox announced its acquisition of people analytics platform Eqtble in February, Paradox CEO Adam Godson said that "AI is the future of talent acquisition." "We've always believed that conversations are the UI of the future, and we see an opportunity to create a data foundation that powers people intelligence in a conversational, frictionless way," Godson said at the time in a press release. Many experts see AI as a valuable tool for employers that could lead to faster hiring processes and potentially reduced costs in talent acquisition, PYMNTS reported in August.
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Chipotle CEO praises an alarming hiring practice in the workplace
Last year, Chipotle was accused of "skimping on ingredients" when serving burrito bowls to customers. In response to this accusation, it became a trend on TikTok to film Chipotle employees preparing burrito bowl orders. Customers believed this would lead them to receive larger portions of food, which frustrated workers. Don't miss the move: Subscribe to TheStreet's free daily newsletter Then-Chipotle CEO Brian Niccol later addressed the controversy, claiming that "there was never a directive to provide less" to customers; however, the company found that 10% of its restaurants were serving customers inconsistent food portions. Related: Chipotle faces lawsuit for serving 'inconsistent' portion sizes Chipotle later began increasing its reliance on technology to simplify operations. In September, it began testing a new robot in select stores "to build bowls and salads" for digital orders, improving "employee efficiency and digital order accuracy," according to a press release. It also began testing a new Autocado robot, which "cuts avocados, removes their skin, and separates their fruit through an automated process" in 26 seconds. Chipotle said that this will free up a lot of time for workers, giving them more time to focus on prepping orders and assisting customers. Chipotle CEO praises a controversial change In addition to using robots in select stores, it even began using artificial intelligence to speed up its hiring process as it rapidly opens new restaurants. In October, Chipotle launched its AI hiring platform "Ava Cado" which aims to "provide a frictionless hiring experience by chatting 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," according to a press release. Related: Chipotle is mulling a controversial change to its menu In a recent interview with Fortune Magazine, Chipotle CEO Scott Boatwright said that "Ava Cado" has reduced hiring times by 75% as the company plans to open a new Chipotle restaurant almost every 24 hours this year. "This not only helps us keep our restaurant staffed, but ensures we have the best talent that's available in the industry," said Boatwright. He emphasized that despite the company's increased reliance on technology, it doesn't plan on replacing its workers with it. "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 use of AI in the workplace is making Americans uncomfortable The move from Chipotle comes during a time when many companies such as IBM, JPMorgan Chase, and even the IRS have also recently introduced artificial intelligence into its workplace to boost productivity. In a recent interview with the Wall Street Journal, IBM CEO Arvind Krishna even said that while AI has replaced hundreds of HR workers at his company, it has also resulted in more hiring. More Labor: "While we have done a huge amount of work inside IBM on leveraging AI and automation on certain enterprise workflows, our total employment has actually gone up, because what it does is it gives you more investment to put into other areas," said Krishna. As more companies bet big on AI use in the workplace, U.S. workers are concerned about the domino effect this technology can have on their jobs. According to a recent survey from YouGov, more than one-third of U.S. workers are worried that AI will result in job loss or fewer work hours. Also, 56% of workers in the survey believe that AI will shrink the number of job opportunities, and 55% think that their work hours will be reduced due to the technology. Related: Papa Johns makes major menu change to win back customers
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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.
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Chipotle's CEO Scott Boatwright reveals how their AI hiring platform, Ava Cado, has dramatically reduced hiring time and is supporting the company's ambitious expansion plans.
Chipotle Mexican Grill has embraced artificial intelligence to revolutionize its hiring process, leading to a significant reduction in recruitment time and fueling the company's ambitious expansion plans. CEO Scott Boatwright revealed that the implementation of their AI hiring platform, dubbed "Ava Cado," has cut hiring time by an impressive 75% 1.
Source: Benzinga
Developed by recruiting software firm Paradox, Ava Cado is designed to streamline the hiring process by handling various tasks:
The efficiency gained through AI-powered hiring is playing a crucial role in Chipotle's aggressive growth strategy. Boatwright announced that the company is on track to open more than 300 new locations in 2025, equating to nearly one new restaurant every 24 hours 3.
"This not only helps us keep our restaurant staffed, but ensures we have the best talent that's available in the industry," Boatwright stated 2. The company currently operates over 3,700 locations and aims to reach 7,000 restaurants across the U.S. and Canada 3.
Chipotle's embrace of AI extends beyond recruitment. The company is leveraging AI to enhance customer engagement through its rewards system. The technology helps identify lapsed customers and present personalized deals based on shopping behavior, encouraging return visits 3.
While championing AI's benefits, Boatwright emphasized that the technology is not intended to replace human interaction. "We don't look to replace the human experience, we look to remove waste and expand or enhance the team member experience," he clarified 1.
Source: CNBC
Chipotle's AI adoption reflects a broader trend in the industry. According to a 2024 survey by the Society of Human Resource Management, 25% of U.S. organizations use AI tools for HR-related purposes 1. However, the increasing use of AI in hiring processes has raised concerns among some workers. A YouGov survey revealed that over one-third of U.S. workers worry about AI leading to job losses or reduced work hours 5.
As Chipotle continues its AI-powered expansion, Boatwright remains focused on the core product. "Customers come to Chipotle for the food," he emphasized, highlighting the company's commitment to quality alongside technological innovation 3. With AI streamlining operations and hiring, Chipotle is poised for significant growth in the coming years, setting a new standard for efficiency in the fast-casual restaurant industry.
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