Starbucks, Domino’s, and Chipotle, among other major U.S. restaurant chains, are embracing new technologies to automate production, reduce labor costs, and potentially increase profit margins. To address labor shortages caused by the pandemic, these chains have turned to technology investments in their kitchens. The introduction of automation tools in restaurant chains can lead to shorter wait times, higher customer engagement, and increased sales.
Starbucks is planning to implement a coffee-making machine called the Siren System in approximately 10% of its stores next year. Baristas using the machine will be able to make drinks in less time with fewer steps. For example, a grande mocha frappuccino can be prepared in just 36 seconds instead of 87 seconds. This move towards automation aims to create a more stable production environment and drive margin expansion in the future, according to Starbucks Chief Financial Officer Rachel Ruggeri.
According to a report by the National Restaurant Association, around 58% of restaurant operators expect the use of automation and technology to address labor shortages to become more common in 2022. A survey conducted by HungerRush revealed that 36% of 1,000 U.S. respondents believed that major restaurant chains do not have enough staff to handle orders, food preparation, and deliveries. Consumer expectations have changed, and they now anticipate personalized and efficient service even from smaller restaurants.
Chipotle has introduced a robotic prototype that cuts and peels avocados, reducing preparation time by 50% and helping employees fulfill orders faster. The chain has also implemented a dual-sided grill that cooks 70% faster than the average employee in 10 high-volume locations. Domino’s has been actively pursuing automation projects as well, including the deployment of a pizza delivery robot car and an automated pizza prep device developed in partnership with Picnic Works. Additionally, they have established an automated supply chain center in Indiana to produce batches of dough for Domino’s locations in several states.
Contrary to concerns about job displacement, experts believe that new automation technologies will create new kinds of jobs and expand the overall economy’s efficiency. Gaurav Kachhawa, Chief Product Officer at Gupshup, a conversational messaging platform, asserts that the implementation of automation will not result in a net reduction of employment.
It is clear that these major restaurant chains are leveraging technology to streamline operations, improve customer service, and overcome labor challenges. Automation is becoming a standard expectation in the industry, contributing to increased efficiency and productivity. This trend is poised to shape the future of the restaurant industry as it adapts to evolving consumer demands and market conditions.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
