Operations

Chipotle testing RFID tech to track inventory

Provided

March 31, 2022

Chipotle Mexican Grill is testing radio-frequency identification technology to enhance its traceability and inventory systems at its Chicago distribution center and about 200 restaurants in the greater Chicago area, according to a company press release.

Chipotle is one of the first major restaurant companies to leverage RFID case labels to track ingredients from suppliers to restaurants via serialization.

"RFID labels transform inventory management into an automatic, digital function that optimizes restaurant operations and gives our Restaurant Support Centers access to inventory data in real-time," Scott Boatwright, chief restaurant officer, said in the release. "This integrated technology is improving our employee experience in participating restaurants while also benefiting our supply partners."

Chipotle purchased more than 35 million pounds of locally grown produce in 2021 and has spent more than $400 million in food premiums over the last two years to buy responsibly sourced and humanely raised ingredients, according to the release. The company has worked with the Auburn University RFID Lab to refine the pilot program, which is being tested on meat, dairy, and avocados from five Chipotle suppliers. Ingredients in the test arrive at Chipotle restaurants affixed with RFID enabled case labels and are scanned by RFID readers, which complement existing scanners in the restaurants.

The brand is using its stage-gate process to test, listen and learn from employees and suppliers before deciding on a system-wide rollout of RFID labels.

"We have been developing our RFID program for two years and see this innovation as the next evolution of traceability and food safety," Laurie Schalow, chief corporate affairs and food safety officer, said in the release. "We are excited to test this innovation in the field with our suppliers and restaurants to enhance our robust traceability program."

Chipotle teamed up with RFID software provider Mojix, materials science and RFID innovator Avery Dennison, and RFID reader and encoder solutions provider Zebra Technologies.