Revolution In Restaurant Automation

The adoption of automation in the restaurant industry is nearing a tipping point, given a tight labor backdrop that is seeing new risks emerge from unionization & the FAST Act. Automation not only helps leverage labor but also helps drive sales and enhance data collection. In this report we discuss the potential impact of kitchen robotics and voice AI ordering at leading fast-food chains.
We see voice AI (utilized for phone-in orders and at the drive-thru) and kitchen robotics as approaching a tipping point of adoption. It is also the next logical extension of our long-standing focus on digitization as a key differentiator for restaurant concepts.
We see automation as the next frontier in the industry’s digitization journey, given a similar suite of benefits. For instance, digitization also includes delivering a more frictionless customer experience, enhancing restaurant operations, and improving data collection.
Tipping points are hard to call, but we are optimistic advancements in restaurant automation will see broader industry adoption over the next 12-18 months. Automation plays a key role in eliminating the more frictional tasks to either improve crewmember satisfaction or reduce reliance on labor.
This is especially true as:
We conducted a 9-question roundtable with three restaurant voice A.I. companies that we perceive to be most topical for investors.
We note the following key takeaways:
The insights from the roundtable helped inform financial analyses and labor benefits from adopting voice A.I. at the drive-thru and for phone-in orders, respectively.
To learn more about the impact of kitchen robotics on unit economics, listen to our podcast episode with Miso Robotics.
We expect announcements of companies piloting or installing voice A.I. and kitchen robotic technology to ramp up over the next 12-18 months. No top 25 limited-service restaurant brand has yet announced adoption at scale. While difficult to predict timing, once two or more of the top 25 brands make announcements to adopt technology at scale, we expect the rest will quickly follow.
We will also watch several macro-dynamics that will help determine the timeline of adoption. In order of importance:
The restaurant industry has long employed immigrant workers. We would expect immigration reform at the national or state level to delay automation, though this seems unlikely.
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