Fast Food Restaurants May Be Run By Robots
BANGALORE: The financial services firm Cornerstone Capital has released a new report that makes a strong case for replacing humans with robots, at least as cashiers at fast food restaurants.
The reasons given are a ris
e in food prices, the uncertain effects of Obamacare—which could increase the cost of employees, and income inequality, that has a risk of becoming a point of social and political contention.
The fast food industry operates on very slim profit margins, with 60 to 70 percent of revenues going towards food and labour. This industry cannot increase prices as its customers are particularly price sensitive.
John Wilson, head of corporate governance at Cornerstone Capital, says that the report shouldn’t be taken to mean that kitchens will become automated overnight, and that it will take at least ten years to happen. However, mobile apps that let customers order their food through an automated interface are already present and are reducing the need for cashiers.
"When possible, technology used in ordering (kiosks, mobile, online ordering) can speed the process, improve accuracy and decrease labor cost to the operator, allowing them to maintain their current cost margins," says Darren Tristano, executive vice-president at Technomic, a firm that follows developments in the fast-food industry.
However, he doesn’t think that there are going to be any robot chefs:
"With regards to the back of house, automation in the kitchen — which can help improve labor efficiencies — will also reduce cost, but to some extent, takes away the personal touch of a cook or chef," he said. "These changes may be less desirable by consumers. Overall, automation today will likely save a few dollars, but likely will not be a big impact on restaurant operators who have and will continue to focus on service, hospitality and a friendly smile."
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