From robotic grills to faster blenders with custom ice and milk dispensers, major US restaurant chains like Starbucks, Domino’s, and Chipotle are embracing cutting-edge technologies to revolutionize their production processes. The integration of automation in their operations not only aims to streamline production but also to significantly reduce labor costs, opening up the potential for improved profit margins. These advancements mark a significant step forward in the food industry, as they promise increased efficiency and innovation while maintaining the quality and consistency customers expect.
Starbucks has announced its ambitious plan to introduce the Siren System, a state-of-the-art coffee-making machine, in approximately 10% of its stores from next year onwards. According to Starbucks, this cutting-edge system will enable baristas to craft beverages with greater efficiency, significantly reducing preparation time and complexity. For instance, a grande mocha frappuccino can now be prepared in just 36 seconds, compared to the previous 87 seconds when made using traditional methods. This advancement promises to streamline operations and enhance the overall customer experience at Starbucks locations equipped with the Siren System.
Amidst the pandemic-induced scarcity of affordable labor, restaurant chains made a strategic shift towards investing in technology solutions for their kitchens, effectively bridging the gap. Embracing automation tools has emerged as a key strategy to reduce wait times significantly, leading to increased consumer satisfaction and heightened sales throughout the year, as stated by restaurant executives. These technological advancements not only address the labor challenges but also enhance overall operational efficiency, ensuring a seamless and satisfying dining experience for customers.
According to Starbucks’ Chief Financial Officer, Rachel Ruggeri, the coffee chain foresees a future with a more stable production environment. This vision is expected to play a crucial role in driving margin expansion for the company in the long term. By enhancing production efficiency and streamlining operations, Starbucks aims to create a sustainable and profitable growth trajectory for the future.
In a report published by the National Restaurant Association in February, it was revealed that approximately 58 percent of restaurant operators foresee a rising trend in the adoption of automation and technology to tackle labor shortages this year. This indicates a significant shift towards integrating innovative solutions to streamline operations and overcome the challenges posed by the scarcity of labor in the restaurant industry. As automation gains prominence, it is poised to become an increasingly prevalent approach for managing workforce limitations and ensuring sustained growth and efficiency for restaurants across the country.
According to a survey conducted by HungerRush in May, 36 percent of 1,000 U.S. respondents expressed their belief that major restaurant chains face staffing shortages, affecting their ability to efficiently take orders, prepare food, and manage deliveries. This perception highlights the significant impact of labor challenges on the restaurant industry, raising concerns about the overall service quality and customer experience provided by these establishments.
“Now most consumers expect their local pizza place and their favorite coffee house to remember their last order, know what credit card they want to use, and make it quick and easy for them to complete an order,” said Aaron Nilsson, chief information officer of Jet Pizza, a Michigan-based chain that recently launched an AI-powered phone bot for taking pizza orders. “Society has moved on and automation is expected – even from the small-time operator.”
In July, Chipotle unveiled a cutting-edge robotic prototype designed to efficiently cut and peel avocados, resulting in a remarkable 50% reduction in preparation time. This innovation is aimed at assisting employees in preparing orders more rapidly and enhancing overall operational efficiency. Additionally, the Colorado-based chain implemented a dual-sided grill in ten high-volume locations, which can cook food 70% faster compared to the average employee. Chipotle’s CEO, Brian Niccol, shared these advancements during an earnings call last week, emphasizing the company’s commitment to embracing technology to optimize their kitchen processes and elevate customer service.
Over the past few years, Domino’s has been at the forefront of various automation initiatives. In 2021, the company introduced a pizza delivery robot car in specific stores within its Houston locations, revolutionizing the delivery process. In another remarkable move, Domino’s Pizza Enterprises, last year, collaborated with Picnic Works, a Seattle-based food-automation startup, to unveil an automated pizza preparation device. These advancements showcase Domino’s dedication to incorporating cutting-edge technology into its operations, ultimately enhancing efficiency and customer experience.
In a further display of their commitment to automation and innovation, Domino’s recently established an automated supply chain center in Indiana. Equipped with state-of-the-art machines capable of producing batches of dough, this center began its operations in March. Its strategic location allows it to efficiently service Domino’s shops across Indiana, Illinois, Michigan, and Wisconsin. By leveraging cutting-edge technology in their supply chain operations, Domino’s aims to ensure a consistent and seamless experience for their customers while optimizing their production processes.
“Anytime there’s new automation, it creates new kinds of jobs,” said Gaurav Kachhawa, chief product officer at Gupshup, a conversational messaging platform. “It’s not going to be net shrinking. I think it’s going to be expanding the overall economy and its efficiency.”
