Innovation has an important role in creating, growing and changing industries. Today restaurant leaders continue to pursue automation with new technologies that includes robotics, artificial intelligence and a range of digital technology solutions.
Decades ago Ray Croc took over the leadership of McDonalds from its two co-founders. He went on to make it the largest fast food franchise in the world. While the co-founders introduced a service system that more quickly filled customer orders, Croc is credited with establishing a new franchise model that changed the industry. The competitors that soon followed used McDonalds as their template.
Croc’s vision was to standardize operational processes so customers ate the same exact food and had the same eating experience, no matter which franchise location they visited. He set rules for portion sizes, cooking methods and times, and packaging. His successful execution of his vision changed an industry and that is the essence of transformative innovation.
Today greater access to innovative technology and recent labor shortages are spurring restaurant owners to further automate their operations. They seek improvements to both better serve their customers as well as increase their revenues and improve their margins.
Capterra’s 2022 Restaurant Automation Survey highlights automation solutions, while also taking the pulse of restaurant industry leaders as to their future plans. More than half of those surveyed feel front-of-house workers (FOH) such as hosts, baristas, and drive-through operators are more likely facing replacement due to automation. Tools such as mobile ordering apps, digital loyalty programs, and online reservation software are taking over many tasks.
However, those involved in the “flow of prepared food to customers” such as chefs, managers and wait staff remain irreplaceable, as explained by Molly Burke, senior retail analyst at Capterra.
“Restaurant leaders are prioritizing the human touch for roles directly involved in the flow of prepared food to customers, while implementing automation for more peripheral roles,” said Burke.
While robotics have the potential to bring greater efficiencies to restaurants, chef robots still have limited capabilities and are primarily used for operating deep fryers. However, robotic innovation continues to grow as presented in an article, “10 robots automating the restaurant industry” by Chen Feller at the GKI Group. He identifies a range of restaurant robotic innovations that includes the automation of bartending, salad making and more.
The report also segments the industry in their use of technology—independent restaurants versus chains, franchises, and restaurant groups. Independents prioritize customer service—the “human touch”— and food quality, while those leading multiple location restaurants focus on their operations that serve their larger customer base.
Accordingly, independents recognize the roles of chefs, wait-staff, and bartenders because of their personal connection with diners, while chains and franchises put managerial staff at the top of being irreplaceable.
Almost all restaurants face one fundamental question about implementing new technology. Will it help revenue and/or improve margins?
Survey respondents gave an overwhelming thumbs up. Over half say revenue increased after new tools were implemented and over 75% found their employees very accepting of their restaurant’s automation tools.
Overall, almost all surveyed restaurants utilize some amount of automation in back-of-house operations—96%. Those tools include inventory management, food prep, food safety monitoring and administrative areas such as employee management and performance analytics. These are digital tools that can be more readily integrated into a restaurant—that robotics cannot yet match.
As digital technology broadly expands across the restaurant industry and its customers, robotics is on a slower and narrower arc. But there is the X factor whereby another Ray Croc, Steve Jobs or others who may champion the next big innovation breakthrough, transforming the restaurant industry again.
Read more: Restaurant Investors See Technology Driving the Industry’s Future, Moving Past COVID-19
