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Steve Ells

March 19, 2025

Less Robots, More Meat: Chipotle Founder’s Big Pivot

Just over a year ago, Steve Ells, the founder of Chipotle, opened Kernel in New York City—a vegan restaurant concept featuring a large robotic arm in the kitchen to assist in food preparation.

Given Ells’s pedigree, Kernel received significant attention from news outlets, with many speculating whether it represented the beginning of widespread robotics adoption in restaurants.

However, this speculation was short-lived. A year later, Kernel closed, replaced by a sandwich shop serving roast beef and other traditional sandwich staples—essentially, more meat and fewer robots.

This pivot marks a notable shift for Ells, who just last fall described his automation-heavy restaurant as “the future for the restaurant industry.” Yet by December, Ells had expressed frustration and was already planning a reboot. The revamped concept, now called Counter Service, completely changes the original premise.

Why did Ells shift from viewing robotics as central to restaurants to abandoning the idea entirely within a year? Company COO Tom Cortese, who spoke at The Spoon’s CES Food Tech conference in January, outlined some challenges in an interview with Expedite:

The logistics of installing and maintaining a highly sensitive robot are considerable, Cortese says. Employees need to be properly trained to interact with it, and it introduces a whole new set of safety rules beyond those of a typical restaurant kitchen. Then there’s the challenge of New York real estate:

“The subsurface of some of these floors were built in 1910… now I’m bolting a sensitive piece of robotics to it, and the floor shifts over time. That really messes up a lot of things,” he says.

While Cortese didn’t explicitly mention it, another potential issue was likely the restaurant’s overtly robotic appearance. Ells himself admitted as much in a Gizmodo interview, noting he might have gone “a bit cold” with the initial concept and suggested a need to “warm things up” in future iterations. Evidently, that meant removing the giant Kuka robotic arm.

Ultimately, outside novelty concepts such as Cafe X’s robotic coffee shop, consumers appear uncomfortable with prominent industrial robotic arms dominating open kitchens in casual dining settings. Such robots seem jarring compared to purpose-built food-making robots like Sweetgreen’s Infinite Kitchen or Picnic’s pizza robot.

Ells’s decision to introduce meat to the menu also reflects broader market realities. Despite a decade-long focus on vegan and alternative proteins in food innovation, the majority of Americans remain meat-eaters. While restaurants benefit from offering vegan options, exclusively vegan establishments currently face challenges in attracting broader audiences.

By removing robots and incorporating meat into the menu, Ells is pivoting towards a more traditional concept and betting that the success of his new venture is determined by something the pioneering founder knows something about: the quality of the food itself.

June 7, 2023

Robot Restaurant Concepts Have Struggled. Will Kernel Buck The Trend?

Last month, the NY Post revealed that Chipotle founder Steve Ells is plotting a comeback with an automation-heavy restaurant concept called Kernel.

According to the Post, who viewed the startup’s pitch deck, Ells plans to build a chain of restaurants that makes the food centrally in a ghost kitchen and finishes the food in small-footprint retail storefronts. The centralized production facility and the restaurants will feature a significant amount of robotics and automation to produce the food and keep the overall employee count down. According to materials reviewed by the Post, the company states that they believe “a 3-person labor model can work.”

The company has already started building its production facility in NY and plans to launch its first restaurant in NYC in the fall of 2023. Ells is funding the company for now but is looking for investors (hence the investor deck).

As I wrote yesterday, robot-restaurant concepts have often struggled. But given Ells’ experience building a hugely successful restaurant chain, it’s worth asking: Will Kernel buck the trend?

I think they just might. Here are a few reasons Kernel might have a chance at succeeding where others have failed:

Ells is a Proven Restaurant Operator

Unlike the founders of Eatsa, Spyce and Zume, Ells is a restaurant operator with a proven track record of building a restaurant brand from the ground up. During his tenure as the company’s CEO, Chipotle pioneered the fast-casual concept and had one of the most successful IPOs ever for a restaurant chain. Clearly, he knows something about building restaurant concepts.

Ells Has An Intuitive Understanding of Food Unit Economics

During the early days of Chipotle, Ells focused heavily on the unit economics of the burrito business, calculating just how many he needed to sell daily to make a profit. It’s that kind of focus on the different cost-levers that is required when forecasting the cost of building an automation-centric restaurant business that will have higher up-front capex costs but, over time, should ultimately create more efficient restaurants with lower daily operating costs, and isn’t susceptible to the high employee turnover of employees.

The Hub & Spoke Model Can Work If Done Right

Some ghost kitchens have struggled for various reasons ranging from low-quality and high costs. However, fast casual brands have shown to be a logical pairing with centralized commissary kitchens, especially in high-rent markets like NYC (where Kernel plans to open multiple locations). Chains like Fresh&Co have grown fresh-forward concepts across metro areas like NYC through centralized batch cooking of ingredients and doing final-prep in smaller footprint storefronts. If Ells can leverage automation to take on the majority of food prep and save capital to invest in a greater number of smaller stores, he might prove this model as a recipe for the future.

Don’t Build It, Rent It

While many of the early venture-funded robotic food restaurant concepts spent most of their capital building out proprietary platforms, nowadays, a restaurant builder can leverage any of the available platforms to deploy in their food production and food service workflows. One has to look no further than a small operator like Andrew Simmons to see that restaurants can be built by piecing together systems that use robotics-as-a-service payment structures, which lower the overall capex required and allows flexibility to create a workflow over time as needs change and lessons are learned. My guess is Ells is planning on leveraging systems where others have paid all the upfront cost of development, and he can be a customer who benefits from a service and maintenance agreement.

There are still many unknowns about the Kernel concept, including what automation platforms they plan to use (or create) and just what the consumer experience will be like. But if Ells shows the brand-building prowess from his Chipotle days wasn’t a fluke and can be flexible in architecting a production workflow that carries a lower upfront capex hit than early robot restaurant efforts, he may be on his way to building one of the first true robot-powered restaurant chains.

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