Restaurant automation | KRG Hospitality

Do You Need a Restaurant Chatbot?

by David Klemt

The labor shortage, increasing demand for convenience, and artificial intelligence are converging to make a strong case for restaurant chatbots.

Specifically, bots that can take orders accurately. As consumers increasingly live their lives on demand, any perception of even minor inconvenience can turn someone against a brand or venue.

In addition to convenience, today’s consumer, generally speaking, also expects to find more technology when engaging with a business. Likewise, workers expect employers to implement more tech, whether it’s welcome or not.

When it comes to our industry, that means everything from streamlined POS systems and powerful CRM platforms to predictive ordering software and cobots.

Looking at generative AI and guest-facing tech, it won’t be long before guests expect to place their orders via chatbot.

In fact, some consumers are placing orders with restaurant bots now. There are already text- and voice-based restaurant bots out in the world. So far, it appears that many QSRs are implementing generative AI bots to handle orders.

As some of the companies developing restaurant bots point out, they never tire. The bots never feel overwhelmed. They can field a limitless amount of calls, working around the clock without breaks, every day of the year. Obviously, restaurant bots don’t get sick, ask for time off, or no-call, no-show.

So, for high-volume restaurants, particularly those with drive-thrus, restaurant bots are probably incredibly attractive. Clearly, labor is still an issue. And these restaurant bots promise to take the ordering process out of workers’ hands, allowing them to focus on “more important” tasks.

Now, couple that with guests seeming less patient, less forgiving, and more obsessive about convenience. On-demand solutions certainly appear great on paper.

Text Bots

We know that guests are already interacting with restaurant bots. When they visit a restaurant’s website or download its app if they have one, they’re encountering bots.

Some provide information, some can make reservations, and an increasing number can take orders. There are bots that imitate a text exchange, and those that streamline the ordering process by using canned replies.

One of the better known of these is Dom, Domino’s chatbot. Whether via app or website, Dom walks people through the ordering process easily and, in my experience playing with this tool, quite simply.

Further, Dom can “remember” previous orders (when a customer is logged into their account) and reorder them. The bot can make recommendations, and it will search for and apply coupons or promotions.

These functions are, of course, the pros of restaurant bots. As their ability to handle more complex tasks increases, the promise is that they’ll do more than offer convenience or solve some labor issues.

Rather, they’ll also generate more revenue by making personalized recommendations, upselling customers, and reaching out to customers to prompt them to place an order.

Voice Bots

As operators whose phone lines light up from open to close can attest, there are people who prefer to talk to someone to place an order.

Well, there are now restaurant bots that can field those calls.

One provider of this tech is ConverseNow. The company uses voice AI, which they explain is also known as conversational AI on their website. Their tech handles phone and drive-thru orders, and the experience is close to, if not exactly like, speaking with their human counterparts.

According to ConverseNow, operators no longer have to worry about unanswered calls. Customers won’t call in only to hear a busy signal. Drive-thru times are reduced. Workers can focus solely on service, prep, and fulfilling orders.

Additionally, the company is focusing on accuracy. There’s an agent-assisted solution, for example. If a complex order comes in, an agent can take over before things go sideways. Agents can also help ConverseNow’s AI to learn from new situations, ensuring the customer experience is painless and even more accuracy.

The tech is so good that Domino’s uses it along with Dom. Per the ConverseNow website, the tech integrates with leading POS systems like Toast; is live in more than 1,200 restaurants in over 40 states; and has taken 8.5 million orders and freed up one million labor hours for their clients.

Along with ConverseNow, operators can look into HungerRush, Yellow.ai, and other solutions.

Takeaway

Restaurant bots certainly make sense for high-volume, limited-service, and QSR operators. They can reduce labor costs and capture more (if not every) order with ease.

However, we need to consider the impact of reducing or eliminating human interactions in hospitality. Whether in the front or back of house, we appear to be heading toward an industry putting less emphasis on the human element.

Yes, team members still interact with guests to take in-person orders and for in-person dining. That is, for now.

In the QSR space in particular, ordering kiosks are becoming more common. At some point, AI-powered kiosks, along with other AI tools, will replace the need to interact with humans in fast-casual and casual-dining restaurants.

It seems at odds with the spirit of hospitality for guests to not have to interact with a team member until their food needs to be dropped. And with cobots, that’s also a task an operator can automate.

I’m all for progress and innovation. And I’m all for delivering on the guest expectation of convenience. However, it’s a balancing act. An operator opting to automate tasks so team members can better engage with guests needs to ensure that’s actually happening.

I don’t think we need less human interaction. And I, for one, have a growing concern that some operators are journeying further down the path of barely seeing the people they employ as people. Rather, too many are increasingly seeing team members as liabilities and nothing more.

I point that out to say this: When considering implementing any new tech, consider the impact on more than just P&Ls. This is a people business, and dedicating yourself to slashing costs and boosting revenue ruthlessly runs the risk of making a restaurant less hospitable for guests and staff.

Image: Cash Macanaya on Unsplash

Tech this Out: Rise of the Cobots

by David Klemt

As technological innovations continue to flood the hospitality industry, restaurant and hotel robots appear to be on the rise.

Or, perhaps more accurately, robotics companies appear to be targeting hospitality more.

There were, for example, far more robots on the National Restaurant Association Show floor this year. Beverage-making robots, server bots, room service delivery robots, lobby “host” and information bots, automated robot arms… There were robots in each hall.

Interestingly, however, a different word is beginning to take hold: “cobot.”

While the concept isn’t new—cobots have been working in other industries—the word is likely new to hospitality professionals.

Simply put, “cobot” is a portmanteau of “collaborative robot.” These are, therefore, robots that work alongside and with humans. In other words, the term implies that these robots aren’t here to replace people.

Rather, we’re to believe that cobots are just here to take over hazardous and tedious tasks.

Dropping fries? Let the cobot do it. Flipping patties? Why should a human do that when we have cobots? Food is up? Send out the serverbot. Table needs turning? The cobot can drop the dishes, flatware, and glassware to the dishwasher station.

It’s difficult for me to not be skeptical. “Cobot” may aim to imply collaboration, but how long until most of the back of house is automated? How long until members of the kitchen team go from “freed up” to replaced fully?

On the flip side, however, I do see the appeal. Some tasks are tedious. There are hazardous tasks. Labor costs are too high. It is difficult to find and retain talent.

Cobots and other forms of automation offer viable solutions.

Cobots, Roll Out!

So, are these pie-in-the-sky vanity prototypes getting media attention? Or are there really cobots available?

If you have the money and the inclination, these robots aren’t vaporware. There are robots designed to take on several restaurant and hotel tasks that can work at your venue today.

Of course, you have to keep your back-of-house and front-of-house footprint and layout in mind. Perhaps more importantly, you also need to understand how your guests feel about technology, automation, and robots.

I don’t mean making assumptions, either. No, not every Millennial or member of Gen Z is tech-hungry. In fact, some are tech-averse and don’t want robots making or delivering their food. It’s not, as some would say, a vibe.

This is to say, the decision to bring cobots into your business isn’t just about cost. This robots will affect your bottom line in various ways, affect your team, and affect the guest experience. In turn, that means they affect your brand.

Of course, cobots and automation do work with some concepts and brands. If automation and tech-savviness are part of the brand, cobots should work.

However, it’s wise to proceed cautiously and intentionally.

Guidance, Information and Entertainment

SoftBank Robotics manufactures Pepper, a robot my friends and I have interacted with in Las Vegas.

Formerly the Mandarin Oriental Las Vegas, we’ve played around with Pepper at the Waldorf Astoria over the years. Pepper has offered to help us check in, provide information about the hotel, told us jokes, and played music and danced with us. (It’s possible we’ve danced with Pepper after visiting the hotel’s Moët & Chandon vending machine.)

Another interactive robot is Guiderbot G2, also known as Peanut, by Keenon Robotics. I’ve interacted with Peanut at the 2023 NRA Show in Chicago and this year’s Hospitality Show in Las Vegas. Peanut is, for lack of a better word, cute and people seem to want to engage with it.

As one may guess from the formal name of Guiderbot, Peanut is tasked with a mission similar to Pepper’s.

Delivery and Bussing

I also “met” Keenon’s Butlerbot W3, Peanut’s room service delivering peer. Interestingly, the four doors can be configured to best deliver to a guest or guests.

Then there are the Dinerbots, a series of Keenon robots that can “work” at restaurants and drop orders off at tables.

Spend any amount of time on most hospitality trade show floors and you’ll encounter front-of-house delivery cobots. And, of course, these robots can be used to clear tables and pop by the dishwashing station.

Production

Most operators, when thinking about automation, are likely familiar with Flippy, Flippy 2, and Flippy Lite.

From Miso Robotics, this family of robots features robot arms that tend to fryers. That a Flippy can handle just about any fried food and fit in most kitchens without much modification (if any) makes these cobots attractive.

From what I’m seeing, robotic arms are the cobots du jour. Along with Flippy there are the Intelligent French Fry Robotic Solution from Atosa; FryBot from Lab2Fab; and the Wingman from Nala Robotics. And that’s just a few of the cobot arms out there.

Of similar design are a variety of automated beverage-producing robots. At the moment, these tend to be robotic arms contained within a trailer or kiosk that are capable of quickly serving personalized coffees. One impressive example is Robojo by Zink.

There are also automated make lines, such as the Robochef SmartLine and TechMagic P-Robo.

We don’t know how long it will be until robots are commonplace in restaurants. For now, they seem to be at home mostly in a select few chain restaurants, niche operations in destination markets, and hotels.

However, as we all know, as tech goes from early adoption to ubiquity, cost becomes less of a barrier of entry. My concerns, for now, are the risks to people’s jobs and the impact on the guest experience.

Image: Mathew Schwartz on Unsplash