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The Spoon

Daily news and analysis about the food tech revolution

Robotics, AI & Data

Survey: 71% of Consumers Are ‘Amenable’ to More AI in Their Restaurant Experience

Well over half of consumers “are amenable” to more artificial intelligence (AI) and advanced tech in their restaurant experience, according to a new survey from ad-tech firm AdTheorant.

The survey of over 2,000 U.S. adults, conducted this past September by The Harris Poll, looks at consumer sentiment and interaction with quick-service restaurants (QSRs) and fast-casual restaurants (FSRs) across a number of areas, AI among them.

Of those survey respondents, 71 percent said they would be “open to QSRs/FSRs incorporating AI into their business.” In particular, consumers would be most interested in AI if it could help drive down the cost of menu items (43 percent) and speed up the ordering process (42 percent).

As to the actual AI technologies that could do that, consumers are most interested in screens, according to the survey. Sixty-six percent said they were interested in using a touchscreen device (phone, kiosk, etc.) to order and nearly half of respondents, 42 percent, said they would like a voice-ordering system. 

Restaurants are already trying to meet this demand. Self-service kiosks are becoming a regular fixture at QSRs and FSRs as chains revamp their store formats to be more delivery- and takeout-friendly. In the last few months alone, we’ve seen Shake Shack, Chopt, Sweetgreen, and Krispy Kreme, among many others, unveil new store formats that feature kiosk ordering. Meanwhile, KFC is reinventing the concept of the drive-thru to be more touchscreen-centric, and McDonald’s leads the pack in terms of AI in the restaurant with its 2019 acquisitions of AI company Dynamic Yield and and voice-tech startup Apprente.

More surprising was the lower percentage of survey respondents who said AI offering more personalized food recommendations was important. On of the goals for McDonald’s when it acquired Dynamic Yield this past March was to make menus more “Netflix-y.” In other words, menus could dynamically generate recommendations based on a number of factors (past orders, trending items) and in doing so offer more relevant recommendations and upsell items.

AdTheorant’s report, however, notes that just 22 percent of consumers said this would be an important driver of their adopting more AI tech during their restaurant experience.

Part of that may be a matter of exposure. McDonald’s aside, many chains are still just getting started when it comes to the AI-driven menu. Dunkin’ is said to be dabbling with it. Starbucks says AI is a key piece of its overall digital strategy moving forward and that it’s Deep Brew initiative, which will (among other things) power better menu recommendations will be a big part of the chain’s focus in 2020.

Cafe X to Open its Robot Barista at SFO on Dec. 23

Good news for fans of robots and coffee who are flying either to or from San Francisco’s SFO airport! On Monday, December 23, Cafe X is opening up its latest robot barista location there.

Cafe X’s SFO robot is located in Terminal 3 near Boarding Area E and is the second airport for Cafe X, following the company’s launch at the San Jose Airport earlier this month. Both airport locations sport Cafe X’s new robot design which has three larger pickup windows, an expanded menu, and the ability to make up to six drinks at a time.

Though Cafe Xs typically have a human on hand to help with customer service, the company is in the process of getting its robot designated as a vending machine. This will allow the robot to operate without a human on hand and thus be easier to serve drinks at all hours of the day and night.

Busy travelers will be getting their cups of coffee from even more robots in the coming new year. Elsewhere in Terminal 3 at SFO is Briggo’s robotic Coffee Haus, which also has two locations at the Austin-Bergstrom airport. And Briggo has also partnered with SSP America to open up an additional 25 airport locations over the next two years.

If any avid Spoon readers are flying through SFO next week, stop by one or both of these robo-barista and let us know how you like them!

Albertsons and Takeoff Partner for Robot-powered Grocery Micro-Fulfillment

Grocery retailer Albertsons and Takeoff Technologies announced today that they are forming a strategic partnership with a dedicated teams to “collaborate on the evolution of microfulfillment,” according to the press release. Translation: Albertsons is getting more robots to grab your groceries.

Takeoff creates robot-driven micro-fulfillment centers to facilitate online grocery orders. The automated system consists of a series of tote boxes, rails and conveyors and is small enough to be built into the back of an existing grocery store. When an online order comes in the robots taxi each item to a human who packs them all up for delivery or pick up.

Today’s announcement expands on a pilot program Albertsons and Takeoff announced a little more than a year ago. The first micro-fulfillment center of that deal opened this past October in South San Francisco, with another set to open in San Jose before the end of the year.

A year in between the announcement of the pilot deal and its actual implementation may seem like a long time. But as Trung Nguyen, VP of eCommerce for Albertsons told us at our Articulate summit earlier this year, a company the size of Albertsons has to move cautiously when implementing new technologies. The grocer isn’t just interested in cool new solutions; those solutions have to work at scale immediately.

While online grocery shopping is still a small part of overall grocery shopping, it’s growing. Robot powered micro-fulfillment centers like Takeoff’s promise to not only speed up order fulfillment, but since they’re built into existing grocery stores, they push that fulfillment closer to the consumer. This, in turn, should translate into faster order turnaround for delivery or pickup (and more online grocery ordering).

This has been a big year for Takeoff. The startup added ShopRite and Loblaws as customers and raised $25 million.

While Albertsons is heading in Takeoff’s micro-fulfillment direction, rival grocery chain Kroger is going a different way. Kroger is an investor in and using Ocado’s robotics and software platform for online grocery fulfillment. Instead of building smaller centers in stores, Kroger/Ocado is building larger, standalone fulfillment warehouses throughout the country.

Regardless of the implementation, automation is coming to your local grocery store, and it looks like we’ll see a lot more of it happen next year.

Refraction Launches Robotic Lunch Delivery in Ann Arbor, MI

Given that we’ve already seen Refraction AI‘s REV-1 autonomous delivery vehicle tackle the snow covered roads of Ann Arbor, MI, it’s not really a surprise that the company announced today — in the middle of December — that it will start delivering lunches to people who don’t want to brave the cold.

Refraction will now provide food delivery for customers within a 2.5 mile zone. Local restaurants Miss Kim, Belly Deli, Tios Mexican Cafe and Chow ow Asian Street Food are participating. To sign up for the service, hungry people can fill out this form, after which they will receive instructions on how to place their order. Once done, they will receive a unique code and delivery updates. When the self-driving REV-1 arrives outside the destination, the customer is notified to meet the robot at the curb and enter the unique code to grab their food.

Normally we wouldn’t cover such a local story, but this is the first delivery partner announcement from Refraction since the company launched this past summer. Additionally, the REV-1 is different from other autonomous delivery vehicles that are starting to come to market.

The REV-1 is a three-wheeled robot sits somewhere between the bigger pod-like autonomous vehicles Nuro makes and the smaller, cooler sized robots from Starship and Kiwi. This “Goldilocks” type size means it can travel in a road’s bike lane, making it an compelling mode of delivery for both urban and suburban areas.

Plus, as noted above, the REV-1 was built to be rugged and able to travel in inclement weather. As we wrote previously:

First is the environmental scanning provided by a 12-camera setup as well as ultrasound and radar sensors on the REV-1. To make the robot less expensive, the REV-1 foregoes the LIDAR systems popular with other autonomous robots. And according to Johnson-Roberson, Refraction AI’s camera rig also allows the robot to track things not on the ground like buildings and cars to navigate even when road lines are not visible. The other way the REV-1 takes on bad weather is rather low tech. “We’re using fat bike tires a low PSI so they are squishy,” said Johnson-Roberson. “They can run in snow and rain.”

Robots are (slowly) moving from the testing phase to the market stage. Nuro just announced this week that it will be testing grocery delivery with Walmart in Houston. Postmates’ Serve is scurrying around making deliveries in Los Angeles. Starship’s robots are now roaming around multiple college campuses across the country. Kiwi announced its own reinvention last week.

Ultimately, food delivery from restaurants and grocery stores will require a number of different styles of vehicles. With its unique shape, the REV-1 looks like its ready to carve out its own (bike) lane.

Exclusive: Zippin Raises $12M Series A, Announces Cashierless “Cube” Store-in-a-Box

Zippin, a startup creating cashierless checkout experiences for retailers, announced today that it has raised a $12 million Series A round of funding led by Evolv Ventures, the venture fund backed by Kraft Heinz. Other investors include SAP.iO, Scrum Ventures, Arca Continental, and Nomura Research Institute and NTT DOCOMO Ventures from Japan.

Zippin is one of many companies looking to retrofit retailers such as supermarkets with technology to facilitate grab-and-go shopping with no checkout lines. Unlike most of its competition, Zippin doesn’t just rely on cameras and AI to keep track of what people pick up (and put back) while shopping. It also employs shelf-sensors for what it says is a more accurate analysis of what people take and keep as they walk out the door.

As part of today’s announcement, Zippin also said that it is making its technology more portable and accessible to retailers with the introduction of the Zippin Cube. The Zippin Cube is a modular, pre-fabricated cashierless store-in-a-box roughly 300 – 500 sq. ft. that can be assembled in under three weeks upon ordering.

The Zippin Cube is what is currently running in the Golden 1 Center Arena in Sacramento, CA. Zippin Co-Founder and CEO, Krishna Motukuri said to me over the phone last week that unlike other “pop-up” style cashierless checkout experiences — like those from AiFi, which use shipping-container-like structures — the Zippin Cube is modular, so it can fit inside odd-shaped real estate and can even include coolers for beverages and other cold items. Additionally, the Cube comes with all the wiring and mounts ready to go, so it’s easy to install the technology.

These pop-ups promise to be a game changer for food retailers. First, it allows them to quickly and affordably extend their brands into new areas relatively inexpensively. Think: a permanent pop-up mini-Kroger or 7-11 in the lobby of an office building or at a music festival. Or, if you wanted to get really nutty, a supermarket could open up a convenience store inside its existing store. This could be a super fast option for customers just needing one or two very basic grab-and-go items like milk or gum or sodas.

As newsy as this fundraise is for Zippin, it’s also worth pointing out Evolv’s decision to lead the round. As noted, Evolv is the venture fund of Kraft Heinz, and it’s easy to see why that CPG giant might be interested in a technology like Zippin’s. The cameras and AI in a cashierless store environment give Kraft Heinz insights closer to the consumer, with the ability to analyze what products are picked up, which ones are put back, and which products are skipped over entirely when people shop.

We’ve seen a flurry of funding activity in the cashierless checkout space in the last quarter of 2019. Accel Robotics raised $30 million last week, Trigo raised $22 million and Caper raised $10 million, each in September. All this funding is another good indicator that 2020 is going to be a transformational year for cashierless checkout.

Today’s funding brings the total amount raised by Zippin to $15 million. The company previously received an undisclosed strategic investment from Brazillian retailer Lojas Americanas, whos Ame Go convenience stores will be powered by Zippin technology. Zippin said today that it will be launching at new stores in the coming months.

(Photo Credit: Sacramento Kings/Golden 1 Center)

Makr Shakr Launches “Automation Stipend” to Retrain Humans Impacted by Robots

One of the biggest questions looming over the future of an automated workforce is what happens to the human workers replaced by robots? Makr Shakr, the company behind the robot bartender Toni, has come up with one solution: help pay for training for the humans being replaced.

Makr Shakr, in partnership with State University of New York (SUNY), today announced the launch of its “Automation Stipend.” For every bartending robot sold, Makr Shakr “assigns a $1,000 monthly stipend to a selected person whose profession might be impacted by the automation” according to the press announcement. The stipend is meant to help provide training “with special attention to the relation between tech and the food and leisure industries.”

The Automation Stipend is starting this month in Buffalo, NY in collaboration with the SUNY Erie Community College and SUNY Erie Foundation. The first candidate Makr Shakr sponsored is Brian Townsell, a 50 year old hospitality worker, who is getting a scholarship in the Brewery Science and Service Program for a period of four months.

According to the Brookings Institute, food service will be one of the job sectors hit hardest by automation. One of the solutions Brookings has suggested is a “Universal Adjustment Benefit,” which would include career counseling, retraining, and “robust income support.”

Robots are already taking over human jobs across the food industry. Whether that’s Picnic’s conveyor-style robot that can assemble 300 pizzas in an hour, Bear Robotics’ waiter and busser robot, Dishcraft’s dishwashing robot, or Starship‘s robot delivery rovers.

One of the complications of all this is that robots aren’t uniformly bad. They can take over dangerous and repetitive tasks (like working a fryer), provide food around the clock (like Chowbotics’ Sally), and perhaps even reduce the price of some food by reducing the labor cost for a restaurant.

But that reduction in labor has its own cost, and it’s something that we as a society will need to deal with. There will need to be a lot of participation from governments and the private sector, and there won’t be one magic panacea. Makr Shakr’s Automation Stipend might be a marketing ploy, but it seems like a good place to start.

Nuro and Walmart Partner for Autonomous Grocery Delivery in Houston

Walmart and Nuro announced a collaboration today in which the two companies will pilot autonomous grocery delivery in Houston, TX via Nuro’s self-driving pod-like vehicles.

According to the press release:

In the coming months, the autonomous delivery service will be available to Houston customers who have opted into the program. The service will use R2, Nuro’s custom-built delivery vehicle that carries only products with no onboard driver or passengers, and autonomous Toyota Priuses, all powered by Nuro’s proprietary self-driving software and hardware.

Nuro’s R2 pods are low-speed vehicles roughly half the size of regular cars. There are two compartments for cargo, and literally no room for a driver. The advantage of the R2 is that is is more nimble than a full-sized auto and can’t drive as fast. This could make it a “safer” choice than self-driving cars as local governments look to regulate the emerging world of autonomous vehicles on city streets.

This is not the first autonomous delivery rodeo for either Walmart or Nuro. Nuro has tested self-driving grocery delivery for Kroger in Arizona as well as Houston. Walmart announced a partnership with self-driving van delivery startup Udelv earlier this year, and with Gaitek in July to make “middle mile” deliveries between Walmart stores.

Questions remain, however, about whether consumers will want fully autonomous grocery delivery devoid of any human. While it opens up a whole new world of around-the-clock delivery, the drawback is that the vehicles stop at the curb, so shoppers still need to go out to the vehicle and lug the groceries back in. Most of the time, that’s probably a first-world problem. However, it becomes more of an issue if you in a fourth-floor apartment or have mobility issues.

Houston, which has become quite the hotbed for self-driving vehicles and robots. In addition to Kroger, Nuro has been doing self-driving pizza delivery for Domino’s there. Starship robots are now rolling around the University of Houston delivering food to hungry students and staff.

Kroger and Nuro’s pilot will first be available to a select group of those who have opted-in to the service, with plans to expand to the general public later in 2020.

Postmates’ Serve Robot Spotted (and Filmed) Making Deliveries in LA

From the looks of it, Postmates’ Serve robot is ready to roll into action, almost exactly a year after the delivery service unveiled it.

First, Serve made an appearance on The Ellen Show last week in a staged bit about delivering chips and guacamole. And almost immediately after that, Chris Reilly posted an Instagram video of Serve out in the wild making a delivery in “#Hollywood” by the “#CNNBuilding.”

It’s not exactly thrilling footage, but it does show that Serve is real and making rounds around La La Land.

https://www.instagram.com/p/B5tJXUxlN6b

In addition to being cute and cool, Serve’s apparent public debut party, as it were, is a bright spot for what has otherwise been a bummer of back half of 2019 for Postmates. The company delayed its IPO following the WeWork debacle and a general souring on third-party delivery services that have yet to prove their profitability. Then last week, Postmates shut down its Mexico City office and laid off dozens of employees across multiple offices in the U.S.

But Postmates continues to ride the robot delivery wave. Serve is just one of the delivery rover robots that have rolled into the market this year. Starship is being used by a number of colleges now, Refraction AI is proving its hardiness by making deliveries in snow covered streets, and Kiwi just announced a reinvention of its own robot that will make the device more rugged and give it the ability to retrieve items from vending machines.

Los Angeles is an interesting test case for Postmates’ delivery robots. It’s very spread out, which typically works against rover bots with their slow speed and smaller delivery range. However, Los Angeles has nice weather year round and is pretty flat (making it easier for the robot to get around), plus it has a ton of celebrities who order via Postmates.

Postmates seems to be focusing Serve’s, errr, service in California right now. The company announced it August that it was given a permit for sidewalk robotics operations from the City of San Francisco.

Kiwi Unveils New Name and a New Robot (That Can Get Food From Vending Machines!)

Words matter. That’s a lesson I hope robot delivery startup learned earlier this week when it sent out an email saying “We want to let you know that we will be ending the Kiwibot delivery service, effective December 15, 2019.“

We weren’t sure exactly what that meant, and after a full day of confusion and multiple explanatory emails from the company, it turns out it wasn’t the END end for Kiwi. It was just stopping service for the winter. (Sidenote: Don’t skimp on a copywriter.)

The company then said it would be announcing its reinvention yesterday, which it did towards the close of business with a corporate blog post. Kiwi had already shared some details from this “reinvention” earlier in the week: the company has changed its name to “Kiwibot,” there’s a new, more rugged robot on the way (see video below), and something called Kiwi Express promises to be the “First end to end robotic Food delivery service.”

Yesterday’s blog post added a few details:

In 2020, we will roll out Kiwibot Cloud Pro. A new generation is coming. Refined hardware design, new operations features, and superior human interactions will transform the logistics landscape and yield better service.

We combine sensors of a custom made stereo camera to get more information about the environment. Our Kiwibots will sense the world more accurately and move more precisely. Our Kiwibots are now resilient to dynamic light conditions on different sidewalks.

Kiwibot v3.2 | Nuestro robot más avanzado

In addition to the new technology, this new Kiwibot is also more rugged, which will make it less likely to get stuck (and need a human’s help).

On Kiwibot’s website, the company says that its robots can now interact with vending machines. At first blush, this might seem like overkill to have a robot pick you up a Snickers bar from the lobby vending machine because you are too lazy to walk down there. But vending machines are changing and turning into something more akin to small restaurants. Companies like Yo-Kai Express serve hot ramen from vending machines, and Cafe X is re-classifying its coffee robot as a vending machine. So being early to integrate its robot with those types of systems now makes a lot of sense for Kiwi.

It’s nice to know that Kiwi isn’t shutting down. While there are still a lot of issues to work out, I’m still a big believer in robot delivery. More players in the space means more competition and more innovation.

Now Kiwi just needs fewer wording mistakes.

Accel Robotics Raises $30M Series A for its Cashierless Checkout Tech

Accel Robotics, a San Diego-based startup that creates cashierless checkout technology, announced yesterday that it has raised a $30 million Series A round of funding led by SoftBank. This brings the total amount raised by the company to $37 million.

Accel is among a host of companies looking to create so-called frictionless shopping experiences, where shoppers enter a store, grab what they want and then exit, getting charged automatically for what they take.

We don’t know much about Accel’s technology or how it differentiates from others in the space. According to the funding press announcement, Accel uses a camera-based system along with AI to determine what people pick up (and put back). So it sounds more like Trigo and Grabango than Zippin, or even Amazon Go, both of which augment computer vision with shelf sensors.

Accel says that its technology is already being used by grocery stores, restaurants, and convenience stores in both Japan and North America. Unlike other companies in this cashierless cohort, however, Accel isn’t publicly naming those partners.

This year has been a transformational one for cashierless startups as many have announced many of their clientele: Trigo is working with Shufersal and Tesco, Grabango with Giant Eagle, Zippin with Lojas Americanas and Caper with Sobeys.

To be sure, competition is fierce in this space. Even Amazon, which kicked off the whole cashierless craze, is reportedly in talks to license out its technology to third parties, which could alter the competitive landscape even further. But there are a lot of grocery and convenience stores around the world, so there is plenty of opportunity to go around.

Accel says that it plans to use its new funding to expand worldwide by “growing operations, increasing manufacturing capacity, and streamlining its expanding deployment pipeline.”

Cafe X Opens New Version of its Robot Barista in San Jose Airport

If you flew into/out of the San Jose Airport over the past Thanksgiving holiday — bummer! You just missed having a robot make and serve you a latte. Cafe X announced today that its latest automated coffee kiosk is now open for business at the San Jose Airport (SJC).

This is the fourth Cafe X location to open in the Bay Area and SJC is the company’s first airport location (the opening of Cafe X at the San Francisco airport has been delayed due to airport construction).

This also marks the release of a new version of the Cafe X robot that was built in-house and features larger pickup windows, an expanded menu (the robot can now make 6 drinks at a time including four from different taps) and an designated area that can be used for different modules like pastry shelves in the future.

With high volumes of people needing their caffeine fix in a hurry, airports are prime locations for coffee robots like Cafe X’s. The autonomous articulating arm can consistently and quickly make drinks all day without needing to take a break. Cafe X rival Briggo also opened up a location at SFO this summer, and is also at the Austin-Bergstrom International airport.

One difference between Cafe X and Briggo is that Briggo is a standalone coffee kiosk with no humans, whereas Cafe X still has humans on hand to provide customer service and product education. However, I spoke with Cafe X Founder and CEO Henry Hu today, and he told me that the company is in the final process of getting NSF certification so it can operate as a vending machine. Operating as a vending machine means that Cafe X’s will be able to operate 24 hours a day with or without a human.

You’re going to see more high-end vending machines like Cafe X, Briggo and Yo-Kai Express, which makes hot bowls of ramen, pop up in more airports and other high-traffic locations in the future. Vending machines can operate around the clock to feed hungry travelers or employees when other stores are closed. Briggo has partnered with SSP America to open up its Coffee Hauses at an additional 25 airport locations.

Cafe X’s new robot is located in Terminal B, Cafe X at SJC and is open daily from 5:30 AM 10:30 PM for now. Hu said Cafe X will be expanding outside of the Bay Area and into New York next year.

Aeon to Bring Ocado’s Robotic Grocery Fulfillment Centers to Japan

Over the recent holiday break, Aeon, one of Japan’s biggest grocery store chains, announced a partnership to build out Ocado’s robotic fulfillment centers (h/t to ZDNet).

Based in the UK, Ocado is an online grocer with a high-tech platform that combines software and robotic smart warehouses to facilitate fast delivery for customers.

From the press announcement:

Aeon will launch a new company by March 2020 to enhance digital, using AI and robotics, to provide a more convenient online shopping experience for our consumers. Leveraging [Ocado Smart Platform], the first [Customer Fulfillment Center] in Japan will be built by 2023.

This is the latest international partnership for Ocado. The company has similar agreements with ICA Group in Sweden, Group Casino in France, and with Kroger here in the U.S. Kroger invested in Ocado and has already started building out a number of Ocado-style robotic warehouses in places like Dallas, TX and Monroe, OH.

Online grocery shopping is still a small percentage of overall grocery shopping, but it’s growing. Automated fulfillment facilities like those from Ocado and Takeoff will be coming online throughout the next year and could give online grocery shopping a boost by providing ultra fast order processing for either pickup or delivery.

It’s a trend we’ll definitely be watching, around the world, in 2020.