Imagine stepping into a restaurant where your order is taken, prepared, and served by a robot. Sounds like a scene straight out of a sci-fi movie, right? But it’s not. It’s a reality that’s already taking shape in eateries across the world. However, contrary to what you might think, these retail robots aren’t here to take over human jobs. Instead, they’re set to enhance them, according to Bank of America analyst Sara Senatore.
Senatore insists that these robots are not decreasing the number of human employees. Instead, they’re making these workers more efficient and happier. This is a shift in the dynamics of the traditional workplace, with automation becoming the vanguard of modern workplaces, especially in the restaurant industry.
Automation Revolutionizing the Restaurant Industry
A vivid example of this automation revolution is Kernel, a vegan fast-food joint in New York. In this restaurant, humans and robots work hand in hand. A robot arm places food into the oven and then onto an assembly line where human employees take over. The workers, in turn, collaborate with the software engineering team to code the robot arm to optimize the team’s efficiency.
Stephen Goldstein, Kernel’s president, reported that their employees are enjoying the automation experience. He claimed that it’s creating a more positive working environment. Furthermore, Kernel’s staff retention rate is 100%, a stark contrast to the fast-food industry’s average turnover rate of 144% in 2021. This suggests that automation, when implemented correctly, can indeed enhance human jobs.
The Surge of AI-Powered Robots in Retail
The restaurant industry’s shift towards automation isn’t a new phenomenon. However, the recent proliferation of AI-powered robots in this sector marks a significant change. The integration of these robots into physical processes presents a bigger challenge, according to Senatore.
The COVID-19 pandemic accelerated the implementation of technologies like robot couriers and in-app ordering. As consumers continue to embrace online ordering and automation, retailers are adopting omnichannel strategies, striking a balance between in-store and online shopping experiences. Some analysts attribute the surprising productivity boom in early 2021, which surged 5.4%, to this automation.
Fast-casual restaurants like Sweetgreen are reaping the benefits of this trend. After introducing the Infinite Kitchen automation system in two locations, Sweetgreen reported 10% higher ticket sales than other stores in the surrounding market. This system improves throughput, order accuracy, portioning consistency, and substantially reduces staff turnover, according to CFO Mitch Reback.
The Future of Automation in Retail
However, the rise of automation and AI-powered robots in retail has raised some concerns. While these technologies can enhance productivity and reduce turnover, they’re not without their potential downsides. Marc Perrone, the international president of the United Food and Commercial Workers International Union, expressed concerns about job security in an increasingly automated retail environment.
Indeed, there have been instances where automation has led to job losses. For example, Hershey announced layoffs as part of a restructuring plan that includes investing in automation. Similarly, automated pizza-making startup Picnic laid off several workers last year, citing a challenging economic environment.
Despite these concerns, it’s clear that automation and AI-powered robots are here to stay in the retail industry. As we move forward, it will be essential for retailers and employees to navigate this new landscape together, leveraging technology to enhance productivity without compromising job security.
