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Sweetgreen Plans to Automate All Stores in the Next Five Years
After opening its first automated location in the Chicago suburb of Naperville, Illinois, Sweetgreen is planning to automate all their stores in the next five years. CEO, Jonathan Neman, announced the company's plans at the William Blair Growth Stock Conference. Though the restaurant industry has been slow to adopt new technologies due to their low-profit margins, many, including Sweetgreen, are now incorporating automation to improve customer experiences and cut costs. Naming it the "Infinite Kitchen," the automated system can make up to 600 bowls an hour and uses dispensers to hold ingredients to assemble warm bowl and salad orders.
The Automated Technology
The system uses a conveyor belt that can hold up to 20 bowls at once and rotates slightly at every stop to allow the new ingredients to go into an empty spot. An employee waits at the end of the belt to add herbs, avocado, and fish, which the automated technology cannot add yet. The company also had to find a way to dispense goat cheese, which often clumps, and cherry tomatoes, which can be easily squished.
Customer Experience
The entrance of the Naperville location features a display refrigerator of drinks and a rack of Sweetgreen-branded sweatshirts. A large digital menu board hangs above the display, offering recommendations for new customers. The ordering process occurs through one of five tablets located in the middle of the store, allowing customers to bypass long lines. This system reduces employee numbers, benefits the restaurant during peak periods, and results in consistent and accurate portions.
Potential Challenges
The primary goal of automating is the ability to cut labor costs. According to T.D. Cowen, 50% of Sweetgreen's staff assemble orders, and 30% of the cost is labor, making it a way to increase profit margins. However, Sweetgreen denies labor cuts are the primary motivation to explore the technology. Some consumers worry that the automated technology might alienate them from the human touch. There is also concern that the technology can fail, necessitating a back-up make line to allow employees to assemble orders by hand quickly. Furthermore, the amended ordering process might slow down the customer journey.
Despite the potential challenges, automation is gaining traction in the restaurant industry. A Deloitte survey conducted in March 2021 revealed that 60% of respondents reported being somewhat likely to order from a kitchen that prepares food at least partially using robotic technologies, up from 54% two years ago.
In today's fast-paced world, efficiency and cost-cutting are critical factors for a successful business. Sweetgreen's latest strategy to automate all their stores in the next five years will change the game for the entire restaurant industry. The new "Infinite Kitchen" technology reduces the need for employees to assemble orders, ultimately decreasing labor costs while optimizing the ordering and fulfillment process. Sweetgreen's automated system can produce up to 600 orders per hour, compared to the average restaurant's 300 orders per hour, giving them a significant competitive advantage.
However, the automation strategy also brings potential challenges, including the customer's need for human interaction and the need for a back-up make line in case of system failure. It is crucial for new businesses to look at the long-term effects of implementing automated technology into their business plan. It can significantly impact employee retention and create an entirely new consumer experience that may take some time for consumers to get used to.
The success of Sweetgreen's automation system shows that embracing new technology can lead to significant gains in efficiency and profitability. New businesses should consider both the advantages and disadvantages of full automation and make sure it aligns with their business's goals and values before implementing it. Ultimately, Sweetgreen's decision to automate their stores may set the standard for the future of the restaurant industry.
