Robot Chefs Challenge & “Human Touch”: U.S. Dining Industry Under Transformation
Trend ∥ USA ∥ Detroit Trade Office, So-Young Song ∥ 2024-12-19 ∥ Source: KOTRA
December 19, 2024
Tackling Labor Shortages and Rising Wages in the U.S. Dining Sector with Automation
The U.S. dining industry is undergoing significant transformation, with robotic arms leading the charge in automating cooking environments.
Recently, the Korean cooking survival show Black and White Chef gained widespread attention for evaluating not just culinary skills and creativity but also strategic business approaches. Contestants competed to create exceptional dishes using limited ingredients within tight time constraints, highlighting innovation and strategy far beyond basic cooking. Meanwhile, in the U.S., "Robot Chefs" are gradually taking over human cooks’ roles. Tasks such as flipping fried foods in hot oil or preparing customized salads are now performed by robotic arms and automated systems, improving efficiency and consistency in repetitive processes. This shift represents more than just a technological upgrade. Faced with labor shortages and rising wages, the food service industry is strategically integrating automation and collaborative robots to streamline repetitive tasks and boost operational efficiency. This evolution is seen as a key competitive strategy for the future.
A Booming Industry Plagued by Workforce Challenges
The U.S. dining industry continues its upward trajectory, holding a vital position in the national economy. In 2023, the market reached $905.1 billion, reflecting a 9.8% growth from the previous year. By 2030, the market is expected to nearly double to $1.8 trillion, with an annual growth rate of 10%. This growth signifies a transition beyond pandemic recovery into a phase of rapid expansion. However, hidden beneath this growth is a structural labor shortage. According to the National Restaurant Association’s State of the Restaurant Industry 2024 report, 45% of food service operators said they lack sufficient staff to meet customer demand, and 57% reported deficits exceeding 10%. The demand for skilled kitchen staff is particularly acute. The U.S. Bureau of Labor Statistics (BLS) forecasts a 20.4% growth in food service cooks by 2032, making it the fastest-growing role within the sector. Similarly, professional chefs and head cooks are projected to grow by 5.3%, requiring approximately 22,000 additional personnel annually. This increasing demand highlights the critical need for the food service industry to not only attract new talent but also retain skilled professionals over time. Rising consumer expectations for personalized and high-quality meals further amplify the need for strategic talent management and investment.
Rising Wages Tighten Margins
Labor shortages are compounded by escalating wages, creating significant financial strain. Nearly 98% of operators identified increasing labor costs as a primary challenge in the National Restaurant Association's report. By November 2024, the average hourly wage for food service workers had risen to $17.11—a 30% increase from pre-pandemic levels in 2019. This rapid wage inflation is squeezing profit margins and elevating operational costs. Additionally, the physically demanding nature of kitchen work leads to high turnover rates, exacerbating staffing issues. In high-temperature and high-intensity environments, businesses
face the dual burden of recruitment expenses and overburdened existing staff, perpetuating a vicious cycle. Recognizing the limitations of cost-cutting and hiring alone, the industry is turning to innovative solutions like automation and collaborative robotics to improve working conditions, reduce costs, and enhance efficiency.
The Growth of Cooking Automation in the U.S. Food Service Industry
To address labor shortages and rising wages, the U.S. dining sector is increasingly adopting automated cooking technologies. Robotic arms like "Flippy," developed by Miso Robotics, handle repetitive tasks such as frying chicken or flipping burger patties. At fast-food chains like White Castle, Flippy has improved both cooking speed and consistency. According to Miso Robotics, its latest model, "Flippy2," processes approximately 60 frying baskets per
hour, achieving a 30% boost in productivity. Similarly, Chipotle has implemented the "Makeline" system, which integrates with point-of- sale (POS) systems to deliver precise and fast preparation of customized meals, ensuring quality and speed. Meanwhile, Nala Robotics’ AI-powered "Pizzaiola" robot automates the cooking of various dishes, including pizzas, chicken wings, and pasta, producing up to 50 pizzas per hour. These innovations reduce repetitive tasks, improve cooking consistency, and alleviate employee workloads.
Moon Sang-heum, CEO of Noori Chicken, a U.S.-based franchise, shared in an interview with KOTRA’s Detroit Trade Office: & Handling high-temperature frying environments makes it difficult to secure long-term staff.
To ensure consistent quality, cost efficiency, and safety, we decided to adopt automation as a core strategy for our franchise’s long-term growth."
Key Takeaways
Automation is redefining the food service industry's cooking processes. Beyond boosting efficiency, it ensures consistent quality, reduces costs, and improves working conditions, establishing a new global standard for the sector. The second part of this report will delve into an in-depth interview with Noori Chicken's
CEO, exploring automation implementation, operational outcomes, and challenges. It will also provide insights and strategies for Korean companies aiming to expand into global markets.