Should restaurant management consider robots?

Over the last few years there have been a number of companies developing robots that can be used in restaurants, from preparing the food, washing dishes, through customer facing robots that can take orders, payments and even collect dishes after the meal. It all sounds a good idea and once setup correctly then maybe robots are the boost that restaurants need to become more profitable again. Management might consider innovation like this because benefits of a successful installation can be high. A not so successful installation can be very costly equally!

Some Companies Making Robots Today

There are many and include Bear Robotics, PUDU Robotics, Keenon Robotics, Orion Star, Serve Robotics and others. In fact it is a growing area of technology that is being rolled out in to many company spaces, there are even robotic cleaners moving around in Heathrow airport if you look for them! Benefits of using robots on-premise include the usual efficiency and productivity gains, but there are many automated technology systems also available that can achieve similar results.

So why Robots?

From the first thoughts about robots there is the attraction of 'novelty' and unfamiliarity that draws people to look further. It can apply to customers, staff and even management. There is no doubt that initially the perceived novelty of robots can and does come in to play regarding the decisions to use robotics in any restaurant. And there is no doubt that robots can offer benefits like improved customer services, improved throughput in 'back of house' and other benefits such as increasing customers visiting the restaurant to 'take a look' at the robots in action. And of course that can equate to increased profitability.

Robots can, and are often used for advertising and are sometimes ONLY used for moving around the premises showing off the current deals on offer, or showing advertising that might be promoted and even paid for (for example) by the brewery or other related suppliers. As stated certain types of units can be used for cleaning premises, but are most often used for food delivery when the 'novelty' is still new to the restaurant or hospitality venue.

Other types of robots, for cleaning or scrubbing can be useful too, but the cost of those types of devices is high compared to customer facing units. Examine the Harvard Business Review of 'is your hospitality business ready for a robot' to see what others think about robots in hospitality. But it is not the whole story from our perspective.

It's all positive - or is it?

As well as inquisitive customers, staff and management all wanting to see robots in action in restaurants and hospitality, there are some important points that must be taken in to account when considering robot technology for any restaurant; and some of those points will, for example, undoubtedly change the current operation of the venue, maybe in some cases dramatically. Here are a number of considerations that are important to understand when thinking about automation with robots:

[1] Expensive to buy.
Bear in mind that the general direction for management today is to REDUCE costs and not to increase them. Some of these robotic solutions can cost dearly, and losing sight about how these costs are to be recouped can be a major issue that could ultimately close the restaurant in difficult times!

[2] Maintenance Costs.
Maintenance costs can be high, and even if the supplying company sells the initial robots at a 'knock down price' (some do), then the ulterior motive from the supplier is often the sale of long term maintenance agreements that they know you will have to take out. Most companies involved with sales love long term maintenance agreements and long term revenue payments from restaurant owners.

[3] Changing the Operation of the Restaurant.
It sounds so simple. But in reality changing long standing routines in the way a restaurant works has it's own problems. Customers often get used to visiting an operation and as returning customers they 'feel at home'; its one reason why they return to the restaurant. Reworking for robot operation can actually reduce the numbers of some specific types of customers from visiting. For example, older customer (often cited as over 55's) might not be too happy as they find that they can't grasp the tasks placed on them. A good example might be if you use robots for ordering or as a payment method. Some customers still prefer service staff.

[4] Premises changes to accommodate robot operation.
Once you investigate the robot, their physical limitations of operation, and necessary changes on-premise (like un-opened doors to go in to the kitchen or floor thresholds that might include stairs or ramp then its easier to see where many problems lie. Some robotic systems can handle up to 1/2 inch (13mm) variance of surfaces but don't assume the brand you choose can. Stairs and multi-levels are not supported. Most robot units only handle a maximum of 15 degrees tilt but most have trouble with this angle. Serve robots can handle some ramps but this is not the norm.

Lastly, Robots typically use 'Lidar' scanning techniques for ahead and backwards to ensure safe movement. The scanning is sensitive and any obstruction will cause the robot to stop instantly. An isle might be fine at installation time, but any change narrowing the thoroughfare (for example with chairs or table moved in to the aisle) will cause the robot to stop in its tracks immediately.

[5] Retraining Staff Costs
It can be easy to forget that as well as changing the overall operational procedures, the staff will need training too. While robots operate as they should there might be few or no problems, but as soon as things vary then staff will have to be involved to resolve any issues. It's essential that staff know how to resolve any issues that might arise. And the training involved carries a cost that needs to be accounted for as part of the overall costs.

[6] Ancillary Costs of Operation.
Imagine taking 4 robots for everyday work in the restaurant. That includes at least 4 robots charging every night probably 365 days a year. The electricity costs these days particularly in the UK are substantial and must be considered an operating cost. And those batteries inside each robot don't last forever. Some robot companies will only cover those for a set period of time irrespective of the maintenance costs already signed up to. Rechargeable batteries can be very expensive and should be accounted for as part of those operating costs.

[7] Robot as a Service (RAAS)
Many of the mentioned robotics companies operate a RAAS service and charge a monthly fee. One company we have examined closely charges approximately £1200 per month for 1 year, £1000 a month for 2 years and £850 a month for 3 years, so the costs have to be recovered. Stated costs were applicable for the UK in 2024 but will increase no doubt in future.

Typical costs in the USA at time of writing are approximately $5,000 per robot or more. Servo charge $7,000 and Servo+ is around $10,000. PUDU typically sell in the USA for approximately $6,000 to $7000. Expect something like the $US price equivalent to be offered as GBP £ in the UK or even higher. And remember those maintenance costs can be very substantial indeed. All pricing may change from country to country.

The Supply Model

Most suppliers will use various models for selling and supplying in to a restaurant and hospitality sectors. The case for robots and the 6/4 models are explained below:

[a] The 24 table restaurants: Comprises of 4 tables per server (x 6 servers = 24 tables). Nothing has really changed, this model keeps servers on the floor increasing the service levels in fact as many less expensive solutions do - even staff paging. Results include increased tips, and increases table sales and turns.

[b] The 4 to 6 method: There are now only 4 servers for 6 tables each. Savings include 2 x servers salaries. Less demand for servers because of the robots, so 4 staff do the work rather than 6. This justifies the cost of the robots some might surmise.

The 6/4 model is a common method used by robot makers who will justify their products in this way often particularly in restaurants.

Other Technologies Used With Robots

As well as the robots themselves, often other advanced technologies are added to the solution on offer that enhance the basic robot in a number of ways. For example the Table Tracker (used for table location in restaurants) is often integrated in to the robot system so that the robot can determine where customers are seated. While some robotics companies have a location system for their equipment, most do not. Table Tracker from LRS remains one of the most integrated or stand alone table tracker systems available today. The Table Tracker carries additional costs but as a location device it remains one of the best solutions available.

The Case For Robots: Summing Up

It is critical to take all costs in to account when considering the implementation of these robot systems for restaurants or other business uses. As well as the costs for the robots, the maintenance and other modifications to the premises and those staff retraining costs can soon add up to a substantial financial burden that have to be recovered later. And if you lose regular customers consider the consequences.

While it is true that (for example) the 6/4 model will save the cost of two staff (in the UK £12.21 or more (April 2025) per hour +15% National Insurance  (April 2025) + 3% pension; assume 40 hours per week and NI of 15% + 3% pension contribution totals £595.60 per week minimum wage as of April 2025) and that might fall far short of the overall costs involved depending on the number of robots and maintenance costs; robot pricing has increased recently. It is essential that management look close at the variables for the financial case of robot implementation as well as the positives like improved quality service, high efficiency, and importantly, a return on the overall investment that is made.

Many important areas in this article are covered and if consideration is given to the pertinent points that are often omitted from many articles on this subject but included here, that any restaurant or hospitality venue management can then make an informed decision about robots as opposed to what otherwise might arise from anecdotal assumptions through lack of data or a fraction of important facts about robot applications in restaurants.

Harvard Business Review
https://hbr.org/2023/11/is-your-hospitality-business-ready-for-a-robot

The Author: Anthony McKenzie  of LRS UK has written a number of articles for restaurants and hospitality sectors and has created many independent reviews that readers often find useful.