Chipotle testing RFID technology to trace and manage ingredients

Chipotle Mexican Grill Inc. [cmg] said Thursday that it's testing the use of radio-frequency identification (RFID) technology in order to trace and manage inventory. The test is being conducted in the fast-casual company's Chicago distribution center and about 200 restaurants in the Chicago area. The pilot, which was planned in partnership with Auburn University RFID Lab, will focus on meat, dairy and avocados from five suppliers. Items are scanned upon arrival, and will help with any safety or quality concerns that may arise. Chipotle, which touts its efforts to source ingredients that are responsibly and humanely raised, bought 35 million pounds of locally grown produce in 2021. Technology is increasingly being used in the food supply chain, with Walmart Inc.
WMT,
+0.07%
announcing in 2018 that it would use blockchain to track leafy greens. Chipotle stock is up 11.1% over the past year while the benchmark S&P 500 index
SPX,
-0.20%
has gained 15.6%.

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