automation

Is restaurant automation good for business?

The evolution of restaurant technology in recent years has included everything from AI to robotics, making futuristic improvements to labour management, service, operations, and beyond. Are you considering adding robotics and automation to your restaurant operations?

Recent studies have shown that consumers are looking for more automation from restaurants in general, believing that restaurant tech provides faster service, is more accurate, and is more efficient than the alternatives. Automated ordering is also a priority for diners, with 70 per cent saying they’d order on an app and 65 per cent saying the same for a kiosk.

Research suggests that 92 per cent of all top-performing restaurants offer mobile ordering and loyalty rewards programs, demonstrating that these tools are a valuable addition to the foodservice industry for consumers and a successful way to add revenue and loyalty for your business.

Robotic kitchens are also on the rise, and some systems are able to complete a multitude of tasks, from loading the fry baskets to building complete meals. Restaurants like the American chain, Sweetgreens, have found that the addition of an automated kitchen system costs about as much as 14 full-time kitchen staff members, but equates to the weekly amount of work completed by 23 workers.

Though the initial investment can be substantial, is the promise of fulfilling diner expectations, greater efficiency, better labour management, and improved service enough? Rather than employee replacement, think of it as employee enhancement, helping to fill in for absent staff members, speeding up service during a rush, and improving order accuracy for a better experience.

There are several factors to consider before investing in this type of technology to determine whether automation would benefit your restaurant:

Costs

Assess the potential and expected costs on a monthly and annual basis. What would the cost be if the technology needed to be repaired, updated, or replaced? How much time and money will training your teams take? Look at all costs, including the initial investment, to help weigh whether it makes sense for your business long-term.

Revenues

How can automation generate revenue, rather than simply saving you money? Does it allow you to extend your operational hours? Can it offer additional services?  Is it part of a marketing plan to attract new guests to your restaurant? Try and get creative to add even more value to your investment.

Customer base

Study your customer base to see whether this type of technology would be appealing to your guests. A 2024 study revealed that Millennials are the most likely generation to embrace automated systems or robots in full-service restaurants. However, while 58 per cent of Millennials would order food prepared by automated systems, only 14 per cent of Baby Boomers would have done so. Even though there are many pro-automation consumers, are those consumers your customers? Determining whether automation suits your business means taking a close look at your customer demographics to determine whether it will enhance the experience or detract from your guest visits.

Staffing challenges

While robotics is generally credited with helping restaurateurs address labour shortages, some studies suggest it may have the opposite effect long term; that by adding robotics may, in fact, deter candidates from applying if they don’t think they have a viable future working at your restaurant. In addition, staff may start to leave if they are under the impression that they are going to be replaced with technology.  This “robot-phobia” has been shown to increase anxiety and stress for foodservice workers who are worried about job security.

Operators need to impress upon staff that they are valued and that technology is simply augmenting their offerings, not replacing human interaction. “When you’re introducing a new technology, make sure not to focus just on how good or efficient it will be. Instead, focus on how people and the technology can work together,” affirms Bamboo Chen, a hospitality researcher in WSU’s Carson College of Business.

By thoroughly assessing the costs and benefits, defining your target clientele, and maintaining a happy team, you can determine whether your investment in automation will pay off in greater operational efficiency and overall success for your restaurant. As more and more technology emerges, operators will have to weigh whether adoption makes sense for their customers and their business in order to remain competitive and profitable in today’s crowded marketplace.