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Here's Why Chipotle, Sweetgreen and Others Bet on Automation: Rise of the Restaurant Robots

 

Kernel's Robotic Revolution: Transforming the Fast-Casual Dining Experience

Kernel, a New York City startup founded by Chipotle Mexican Grill's Steve Ells, is pioneering the future of fast-casual dining with an innovative blend of automation and human touch. Utilizing a robotic arm for flipping plant-based burger patties and a conveyor belt system for moving dishes along the assembly line, Kernel seeks to revolutionize restaurant operations. Let's delve into the mechanics of this ambitious venture and explore how it aims to reshape the dining landscape.

The Birth of Kernel

Ells, who founded Chipotle in 1993, envisioned a restaurant that minimized waste, streamlined operations, and reduced labor dependency. After stepping away from Chipotle in March 2020, he focused on creating Kernel. This new venture leverages a German-made Kuka robotic arm, typically used in car manufacturing, repurposed for food preparation. Custom software, developed over two years, orchestrates the robotic movements and other automated components, aiming to support restaurant staff without overwhelming them.

Initial Challenges and Adaptations

The initial launch of Kernel faced significant hurdles. The restaurant's stark, industrial look, combined with the robotic arm, confused diners. In response, Ells temporarily closed the location to add seating, pictures, warmer colors, and softer lighting to create a more inviting atmosphere. The renovated restaurant, now exuding a warmer vibe, reopened to better reception.

Ells candidly shared the challenges faced in the first month, with system crashes shutting down operations during peak hours. However, through persistent refinement, the system has now achieved stability, and Kernel plans to open its second Manhattan location later this summer.

Automation in the Restaurant Industry

The restaurant industry is increasingly exploring automation to address rising labor costs and boost productivity. Companies like Chipotle and Sweetgreen are experimenting with bespoke machines for various tasks, such as mixing greens, cooking burgers, and peeling avocados.

Chipotle, for instance, tested a "Chippy" robot for making tortilla chips and an "Autocado" robot for cutting, coring, and peeling avocados. While the Chippy robot's setup and cleaning costs outweighed labor savings, the company remains optimistic about deploying the Autocado robot later this year.

Similarly, Sweetgreen, a Los Angeles-based salad chain, intends to use robots in all its new restaurants, working alongside human employees. Their proprietary robot dispenses ingredients into bowls traveling on a conveyor belt, mixing the meals before human workers add finishing touches.

The Broader Context of Restaurant Automation

Automation in restaurants is not a new concept. Automats, popular over a century ago, dispensed hot meals from vending machines. In Japan, sushi on conveyor belts became a trend in the 1980s. More recently, McDonald's introduced digital kiosks for ordering in the 2010s, which have now become widespread.

However, food presents unique challenges for automation. Unlike auto parts, food items are soft and slippery, requiring a level of dexterity that many robots currently lack. Despite these challenges, the Covid-19 pandemic has accelerated the adoption of automation in the industry, with many restaurants incorporating technology to cope with labor shortages.

Financial and Operational Considerations

Kernel's business model emphasizes higher wages and benefits to attract and retain staff. Instead of a dozen hourly employees typical of fast-casual eateries, Kernel operates with just three employees per shift, each earning $25 an hour, plus health benefits and company equity. This approach aims to improve employee tenure and satisfaction.

Future Prospects and Industry Impact

Kernel's success could signal a broader shift towards automation in the restaurant industry. According to Sharon Zackfia, a restaurant analyst at William Blair Equity Research, rising labor costs will likely spur more automation in the next decade. Early adopters, like Kernel, are expected to pave the way for more mainstream offerings as technology evolves.

Kernel represents a bold experiment in the future of fast-casual dining, blending advanced robotics with human craftsmanship to create a unique dining experience. While challenges remain, the potential for increased efficiency and reduced labor costs makes automation an attractive proposition for the restaurant industry. As Kernel continues to refine its operations and expand its footprint, it may well set a new standard for what diners can expect from their favorite eateries.

F.A.Q.

Question 1.

Q.: What is Kernel and what makes it unique in the fast-casual dining industry? 

A.: Kernel is a New York City startup founded by Steve Ells, the creator of Chipotle Mexican Grill. It differentiates itself by integrating advanced automation with human touch in its restaurant operations. A robotic arm flips plant-based burger patties, and a conveyor belt system transports dishes along the assembly line, where human workers add the finishing touches. This blend of technology and human craftsmanship aims to revolutionize the fast-casual dining experience.

Question 2.

Q.: How did Kernel address the initial challenges faced during its launch? 

A.: Upon its initial launch, Kernel encountered significant challenges, including confusion among diners due to its stark, industrial look. To address this, the restaurant temporarily closed to incorporate seating, pictures, warmer colors, and softer lighting, creating a more inviting atmosphere. Additionally, initial technical issues such as system crashes were resolved through persistent refinement, leading to stable operations and plans for a second location.

Question 3.

Q.: How does Kernel's automation technology work? 

A.: Kernel utilizes a German-made Kuka robotic arm, repurposed from car manufacturing for food preparation. Custom software developed over two years orchestrates the robotic movements and other automated components. This technology ensures precise execution of tasks like flipping burger patties and moving dishes along the assembly line, supporting restaurant staff without overwhelming them and enhancing overall efficiency.

Question 4.

Q.: What are the broader trends in restaurant automation, and how does Kernel fit into this landscape? 

A.: The restaurant industry is increasingly exploring automation to address rising labor costs and boost productivity. Companies like Chipotle and Sweetgreen are experimenting with bespoke machines for tasks such as mixing greens and cooking burgers. Kernel fits into this trend by pioneering the use of robotics in a fast-casual dining setting, demonstrating the potential for increased efficiency and reduced labor dependency through automation.

Question 5.

Q.: What financial and operational strategies does Kernel employ to ensure sustainability and employee satisfaction? 

A.: Kernel employs a business model that emphasizes higher wages and benefits to attract and retain staff. Instead of the typical dozen hourly employees found in similar eateries, Kernel operates with just three employees per shift, each earning $25 an hour, plus health benefits and company equity. This strategy aims to improve employee tenure and satisfaction, ensuring a stable and motivated workforce.

Question 6.

Q.: What are Kernel's future prospects and potential impact on the restaurant industry? 

A.: Kernel's success could signal a broader shift towards automation in the restaurant industry. As technology evolves and labor costs continue to rise, early adopters like Kernel are expected to pave the way for more mainstream automation solutions. By demonstrating the viability of integrating robotics into restaurant operations, Kernel could set a new standard for efficiency and customer experience in the fast-casual dining sector.

Question 7.

Q.: How does Kernel's approach to automation compare to historical and current trends in the industry? 

A.: Automation in restaurants has a long history, from automats dispensing hot meals over a century ago to sushi conveyor belts in Japan and digital kiosks at McDonald's. Kernel's approach builds on these trends by leveraging cutting-edge robotics and software to achieve a higher level of precision and efficiency in food preparation. Unlike traditional methods, Kernel's system integrates advanced technology with human oversight, offering a unique and modern dining experience.

Question 8.

Q.: What challenges does food present for automation, and how does Kernel address these challenges? 

A.: Food poses unique challenges for automation due to its soft and slippery nature, requiring a level of dexterity that many robots lack. Kernel addresses these challenges through the use of sophisticated software that orchestrates the robotic arm's movements and other automated components with precision. By continuously refining its technology and processes, Kernel ensures that its automation system can handle the complexities of food preparation effectively.

Question 9.

Q.: How has the Covid-19 pandemic influenced the adoption of automation in the restaurant industry? 

A.: The Covid-19 pandemic has accelerated the adoption of automation in the restaurant industry as establishments seek to cope with labor shortages and rising costs. According to a National Restaurant Association survey, nearly a third of restaurant owners are incorporating more technology or automation as a result of being understaffed. Kernel's innovative approach to automation aligns with this trend, positioning it at the forefront of a rapidly evolving industry landscape.

Question 10.

Q.: What are the key benefits of Kernel's automated system for both customers and employees? 

A.: Kernel's automated system offers several key benefits. For customers, it ensures consistent food quality and efficient service, enhancing the overall dining experience. For employees, the system reduces the physical demands of food preparation and allows them to focus on adding creative finishing touches. Additionally, Kernel's higher wages and benefits contribute to a positive work environment, fostering employee satisfaction and retention.

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