Ron Simard’s Post

California recently introduced a law to raise the minimum wage to $20 per hour for fast food workers, which is a great step for worker satisfaction and quality of life but raises some concerns for small to midsize restaurants that already struggle to cope with inflation and labor shortages. While the addition of robotic automation in the restaurant industry may not seem to some like the most effective solution to these problems, we beg to differ. Check out our latest blog post to hear our argument in favor of restaurant automation, and leave us a comment below with your thoughts on robots in the kitchen. https://lnkd.in/ewZ_86Mi

Minimum wage increases are creating a lot of pressure for restaurant operators in California and I'm grateful Presto is a tool so many of them are turning to for help. The labor reduction strategy (redeployment) for kiosk is very similar for AI as is the revenue model that our customers benefit from via upsell: "One common myth about automation is that it replaces human workers entirely in restaurants. While this is true for some kitchen robotics systems like Miso Robotics’ Flippy and Sweetgreen’s Infinite Kitchen, which replace fry cooks and food assembly positions, kiosk providers maintain that self-serve ordering allows restaurants to redeploy, not replace, labor. For example, Barton said an employee normally assigned to cashier duties can be freed up to perform more high-value tasks that can’t be automated, such as clearing tables or filling drink orders. This more efficient use of employees leads to a natural reduction in labor hours for restaurants... Plus, unlike humans, kiosks are programmed to always upsell." https://lnkd.in/g_66Knyg

Relentless #inflation over the last 7 quarters and a tight #labor market are creating challenges for #QSR operators. Not only that, #fastfood is no longer an #affordable option. I ordered an Egg McMuffin the other day and it was $5.09…just for the sandwich. How can an average family afford this? The good news is that in every problem lies an opportunity. Developers of #restaurant #automation #technology like Kitchen Brains can help leverage operators very expensive labor to prepare and deliver #food and maintain the customer experience.

Using pricing survey data from BTIG, let's take a look at what's going on in California. As you'd expect, quick-service brands are raising prices. Fast casuals more aggressively than fast-food chains. And interestingly, McDonald's appears to be holding the line. Of course, all of this is a moving dynamic. Nobody really knows how guests will react or what's coming next (that $20 rate is likely to go higher). Who might benefit? Casual dining, third-party delivery, and robotics companies. What exactly is the value proposition these days? It's hard to understate how much all of this has shaken that equation, and basically overnight.

The restaurant industry's labor situation has seen some improvement, but as highlighted by Restaurant Business Online, it's still far from perfect. Staffing shortages continue to challenge many businesses, affecting service quality and operational efficiency. At Shakeit, we're addressing these challenges head-on with our cutting-edge robotic Smoothie Stations. By automating the smoothie-making process, we provide a consistent, high-quality product while significantly reducing the need for labor. This innovation not only helps businesses navigate labor shortages but also makes fresh smoothies available in far more locations than ever before. Join us in revolutionizing the way we serve smoothies! #Innovation #FoodTech #Automation #Smoothies #RestaurantIndustry #Shakeit https://lnkd.in/gSmPZR-D

🍴 Insightful Shift in Hospitality! #TechTrend #MinimumWage #RestaurantIndustry California's bold move to raise the minimum wage for fast food workers to $20 has sparked more than debate—it's accelerating a transformative era in hospitality technology. Let's face it, automation in our industry is not a newcomer. But this significant wage hike? It's like pressing the fast-forward button. From self-service kiosks to AI-driven drive-thrus, the integration is inevitable, and now, even more urgent. The passage of Assembly Bill 610 is nuanced, carving out certain exemptions while ensuring the wage increase has a broad sweep across the restaurant landscape. And yes, even bakeries like Panera are on board now. It’s all about uniformity. As a marketing professional with years in the field, I see this as an opportunity. We're attracting talent in a recovering post-pandemic market. Yet, we're also embracing tech that millennials and Gen Z consumers are calling for. It’s a delicate balance of progress and people. Technology like self-service kiosks isn’t just about cost savings—it’s redefining customer experiences. Fast food chains are reporting higher orders via kiosks over traditional counters. This isn't just about adapting to wage changes; it's about meeting evolving consumer desires head-on. But, with the California Restaurant Association noting some pullback from expansion due to these wage hikes, we must acknowledge the pressure on operational costs. It's a complex issue: we must innovate or face tough decisions. The upcoming National Restaurant Association trade show is set to showcase how deeply tech and automation will run in our future. With 16% of restaurants gearing up to integrate AI this year alone, we're on the brink of a new era. We must remember: this isn’t just about replacing tasks but enhancing the dining journey. From mobile pick-ups to back-of-house tech, we're on a mission to streamline, not depersonalize. The road ahead? It’s paved with tech, but the destination still promises a human touch. As we navigate this change, let’s ensure our solutions cater to all, blending the irreplaceable human element with the efficiency of automation. Change is here, and it's deliciously innovative. Let's dine on the future together. 🌟 #HospitalityTech #FutureOfDining #Innovation

#Topics An ‘AI’ fast food drive-thru is mostly just human workers in the Philippines [ad_1] Artificial intelligence-powered drive-thru company Presto Automation described itself as “one of the largest labor automation technology providers in the industry,” and boasted its ability to increase sales and “save” human labor time. But according to recent filings with the US Securities and Exchange Commission, off-site human workers are stepping in and completing over 70 percent of orders.Despite the company’s branding and marketing suggesting magical drive-in tech, Presto Automation uses workers in places like the Philippines, according to Bloomberg. The AI drive-thru technology is used by fast food restaurants including Carl’s Jr., Hardee’s, Del Taco, and Checkers across the country, promising to lower labor costs and increase revenue for chains. The Presto Voice product is supposed to use AI to take customers’ drive-thru orders. There’s a pattern of AI “solutions” that actually end up being contractors Bloomberg reports that the SEC notified Presto Automation earlier this year that it was under investigation “regarding certain aspects of its AI technology.” Presto Automation didn’t immediately respond to a request for comment.There’s a pattern of AI “solutions” that actuall...

#Topics An ‘AI’ fast food drive-thru is mostly just human workers in the Philippines [ad_1] Artificial intelligence-powered drive-thru company Presto Automation described itself as “one of the largest labor automation technology providers in the industry,” and boasted its ability to increase sales and “save” human labor time. But according to recent filings with the US Securities and Exchange Commission, off-site human workers are stepping in and completing over 70 percent of orders.Despite the company’s branding and marketing suggesting magical drive-in tech, Presto Automation uses workers in places like the Philippines, according to Bloomberg. The AI drive-thru technology is used by fast food restaurants including Carl’s Jr., Hardee’s, Del Taco, and Checkers across the country, promising to lower labor costs and increase revenue for chains. The Presto Voice product is supposed to use AI to take customers’ drive-thru orders. There’s a pattern of AI “solutions” that actually end up being contractors Bloomberg reports that the SEC notified Presto Automation earlier this year that it was under investigation “regarding certain aspects of its AI technology.” Presto Automation didn’t immediately respond to a request for comment.There’s a pattern of AI “solutions” that actuall...

CALIFORNIA TODAY the #FASTAct takes effect: Fast food chains with at least 60 locations nationwide raise their #minimumwage for #restaurant employees to $20 per hour (up from $16). How do you maintain profitability? Chipotle Mexican Grill McDonald's - well positioned, according to this article. One company that may struggle is Jack in the Box. Around 43% of its restaurants, and 60% of subsidiary Del Taco's locations, are in California. Its diners skew lower income, and it's a more regional brand competing with multinational burger chains with more resources. I think the time is ripe for all #restaurants, but especially those in California, to look at #automation #AI #robotics, like my friends Andrew S. & Susan Carroll-Boser Michael Guinan Tadeh Ghazalian to name a few. Andrew is using robotics in several areas, including #pizzamakingrobots. White Castle was an early adopter of Miso Robotics #Flippy and Chipotle Mexican Grill is using Miso for chips #chippy. Tadeh is using #deliverybots from Serve Robotics Dara Aryanpour Kashani #AI in the #drivethru #backofhouse (robotic arms), #Frontofhouse (server robots), and delivery bots #automateddelivery Dialog Cafe. How do you see automation and robotics taking shape in California, and beyond, when it comes to solving for minimum wages that restaurants simply cannot manage at scale?

Robotic Kitchen developed by #Sweetgreen could become a restaurant revolution. Robotic kitchen prepares the food and its workers enjoy their jobs connecting with the customers delivering on the orders under 3.5 minutes. Here is an #AI solution that helps increases CSAT, reduces DSAT, improves bottomline and retrofits into existing stores. Icing on the cake is its precision to making craving, delicious, whole and healthy food. Is this a winning #AI restaurant use case or what?