U.S. fast-food chains add automation to boost speed
By Kailyn Rhone
(Reuters) — From robotic grills to faster blenders with custom ice and milk dispensers, major U.S. restaurant chains including Starbucks (NASDAQ:SBUX), Domino's, and Chipotle (NYSE:CMG) are touting new technologies to automate production, cut labor costs and potentially boost profit margins.
Starbucks said it plans to roll out a coffee-making machine, the Siren System, in around 10% of its stores starting next year. Starbucks claims that baristas using the machine will be able to produce a drinks with less time and fewer steps, making a grande mocha frappucinno in 36 seconds rather than 87 seconds.
With mass shortages of low-cost labor due to the pandemic, chains shifted to technology investments in their kitchens to fill the gap. The addition of automation tools in restaurant chains could cut down on wait times, driving higher consumer engagement and increasing sales for the rest of the year, restaurant executives say.
Starbucks Chief Financial Officer Rachel Ruggeri said Tuesday that the coffee chain envisions “a more stabilized production environment, which will help drive margin expansion well into the future."
Around 58% of restaurant operators said the use of automation and tech to help address labor shortages will become more common this year, according to a report by the National Restaurant Association in February.
Thirty-six percent of 1,000 U.S. people told HungerRush in a survey in May that they believed major restaurant chains don’t have enough staff to take orders, prepare food, and handle deliveries.
«Now most consumers expect their local pizza place and their favorite coffee house to remember their last order, know what credit card they want to use, and make it quick and easy for them to
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