Trends in Fast Food Restaurant Robotics - The ROI of Commercial Real Estate & Business Outlets

In 2005 we saw a paradigm shift in Starbucks Corporations retail strategy. A strategy from making customers at home in their "third place" to serving consumer rapidly at the drive thru. It seems this strategy is working as people want their latte now and they want it fast. Now Starbucks has brought back the Founder Howard Schultz to bring back sagging sales. There is quite a bit of innovation going on in the restaurant and coffee sector. All of it affects commercial real estate. Without proper ROI, these businesses become unviable for the real estate needs under those outlets.

Many corporate fast food chains (QSRs) Quick Service Restaurants and their franchisee outlets admit that with unemployment hovering at 5.5% that staffing and labor are by far their toughest issue. And hiring non-English speaking help is problematic as the language barrier upsets customers and complicates communication in the drive thrus.

Fastest Food in the West

Many of these restaurants are looking to kiosk ordering systems and robotic assembly line style robots to make the order exactly to corporate policy, exactly the right number of olives on the Tostado and the exact number of pickles on the hamburger. Why?

Cost for one and because robots do not require health care benefits or sue you when they break a fingernail. They do not mouth off to the manager and never show up late. Also by carefully watching the order and processing consistency is maintained and exactly two napkins are provided in the perfectly folded back as it is given to the customer. Expect more QSRs to announcing automating their establishments and watch Wall Street applaud them as they do.

What Are Your Thoughts on this Subject?

 
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6 Comments on Trends in Fast Food Restaurant Robotics - The ROI of Commercial Real Estate & Business Outlets

Lance,  I saw the report on troubles at Starbucks.  I'm not a customer so was interested in how they are doing.  Seems like they have overwhelmed the customer base and are paying some heavy penalties for it.

02/02/2008 09:46 PM by Bill Gillhespy Fort Myers Beach Realtor (Century 21 Tripower Realty)


Bill,

Yes, I concur with that observation, especially in major Markets. I know you have at least 6 starbucks that I know of in Fort Myers, Fort Myers beach has one, maybe two now? I believe they are predatory in the market place to mom-pop coffee places and in doing this strategy are also "canibalizing" their own sales, something that is a huge topic of conversations at the annual IFA International Franchise Association meetings and eventhough Starbucks isn't a franchise it still falls in the canibalizing debate. Too much in your face caffeine was sure to cause this problem. Lance

02/02/2008 10:12 PM by Lance Winslow (The Car Wash Guy)


This is very interesting.  Anyone who works heavily with technology knows that something that was supposed to make things easier usually makes it more complicating.  The jury is still out deliberating on this one for me!

02/02/2008 10:58 PM by Renee Burrows - Las Vegas NV Real Estate (Nevada Realty Solutions)


Lance, here in Willow Glen, Starbucks has doubled the number of stores, in some cases having stores literally a few hundred yards apart.  I asked a manager about this and she said that the theory was that people like to hang out at Starbucks, so if one store becomes overwhelmed, they look for opportunities to put another store in the same area.  As for mom and pop, I hate hot coffee, but I love coffee milkshakes.  I've been laughed out of snobbish mom and pops for asking for iced or blended coffee.  Also Starbucks was originally a successful local brand that transitioned to a global brand based on quality assurance.  I've had Starbucks from Maine to Malaysia and the quality was the same.  I'll trade that for the absence of local brands, many of whom would gladly franchise their name if someone else offered to do all the work.

02/03/2008 12:29 AM by Frank Jewett (tech4REpros)


Frank,

Yes I drink the Foo Foo Drinks too, I like the Frappachinos, not the hot coffee. You make some good points here. Lance

02/03/2008 12:51 AM by Lance Winslow (The Car Wash Guy)


Lance- I don't do fast food so it is not an issue for me. Now, if Whole Foods tries this then I will just have to do something about it! :) 

02/03/2008 01:31 AM by Nestor & Katerina Gasset, Realtors® Wellington Florida Luxury Homes (International Properties and Investments, Inc.)


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Property Manager: Lance Winslow (The Car Wash Guy)
Lance Winslow
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