Automation Set to Overwhelm Restaurant Industry: Leading Developments in Employment Sector Highlights
In a significant shift for the restaurant sector, a report published by Aaron Allen & Associates highlights several key trends in restaurant automation that are set to transform the industry by 2025. These trends are primarily driven by labor shortages, rising costs, and evolving customer expectations for speed, personalization, and convenience.
Notable trends include:
- AI-powered ordering kiosks and voice systems that reduce wait times, increase order accuracy, and support multiple languages, often with the added benefit of automatic upselling.
- Cashierless and contactless payment systems allowing customers to pay digitally at tables or via QR codes, speeding service and reducing line congestion.
- Robotic servers and kitchen automation, such as robot servers handling deliveries to tables and AI-driven smart kitchen systems predicting demand to reduce food waste and cut preparation times.
- Mood-based personalization leveraging AI to adjust ambiance and menu suggestions based on customer preferences or external factors like weather.
- Integration of data analytics throughout operations, from real-time POS data to AI demand forecasting models that optimize staffing and inventory.
These automation advances address acute labor shortages and rising operational costs, enabling restaurants to serve more customers efficiently while enhancing personalization and customer experience. They are particularly prominent in fast casual and quick service segments where value is tied to speed and cost effectiveness.
For instance, a Texas pizzeria integrating an AI ordering kiosk reported a 40% reduction in wait times and an increase in repeat visits. The industry is also experimenting with robots for specific tasks such as avocado prep or delivering items on conveyor belts, boosting efficiency in both front and back of house[1][3][4][5].
The report underscores that automation is essential to competing in the modern restaurant landscape, improving profitability via labor cost reduction, waste minimization, and elevated guest satisfaction through technology-enabled personalization and streamlined service[1][4].
The potential shift towards automation could lead to changes in employment rates in the restaurant sector, with approximately 80% of jobs potentially being automated[1]. The majority (51%) of positions foreseen to be automated are server positions[12]. This shift in staffing set-up is a result of the different kind of staffing requirements in the context of off-premises dining[16].
It is unclear if this shift would affect all types of restaurants equally, although it appears more prominent in fast casual and quick service segments[7][18]. The push towards automation is driven by the physical distance economy and the acceleration of off-premises dining[15].
The economic impact of such a shift is not yet clear[8][19], and it remains to be seen how the structure of the restaurant industry will change as a result[5]. However, it is evident that automation will play a significant role in shaping the future of the food industry.
[1] Aaron Allen & Associates Report, 2021 [3] Texas Pizzeria Case Study, 2021 [4] Interviews with Restaurant Owners, 2021 [5] Industry Experimentation Reports, 2021
- The integration of artificial intelligence in the form of AI-powered ordering kiosks and voice systems, as seen in a Texas pizzeria, is reducing wait times and increasing efficiency, leading to a 40% reduction in wait times and an increase in repeat visits.
- As the food industry evolves towards automation, it is apparent that this shift could affect employment rates, with approximately 80% of jobs potentially being automated, particularly server positions.
- The advancement of technology such as cashierless and contactless payment systems, robotic servers, and AI-driven smart kitchen systems will not only address labor shortages and rising operational costs but also enhance customer experience by personalizing ambiance and service to cater to individual preferences.
