In early May, Sweetgreen introduced its first automated location in Naperville, Illinois. The company plans to leverage this technology to reduce labor costs and enhance the customer experience. However, it remains to be seen if customers, employees, and investors will embrace this new way of operating.
Traditionally, the restaurant industry has been slow to adopt new technology due to slim profit margins and reluctance to invest in potentially ineffective innovations. Nonetheless, Sweetgreen is now joining the ranks of restaurant companies incorporating automation into their operations. Major players like Starbucks and Chipotle Mexican Grill have also explored artificial intelligence and robotics. While some experiments, such as McDonald’s AI voice ordering for drive-thru lanes, haven’t achieved nationwide success, Sweetgreen is optimistic about the potential of automation.
CEO Jonathan Neman expressed confidence at the William Blair Growth Stock Conference, stating that within five years, all Sweetgreen stores are expected to be automated. The company plans to open a second Infinite Kitchen location later this year, retrofitting an existing establishment with the technology. Sweetgreen aims to understand suburban customers’ response to automation in order to inform further expansion.
Sweetgreen’s venture into automation began in August 2021 with the acquisition of Spyce for approximately $50 million. Led by four MIT graduates, Spyce developed robotic technology to create and serve affordable healthy meals. After acquiring Spyce, Sweetgreen experimented with its menu at one of the startup’s locations and adapted the robotic kitchen to suit their needs. Challenges included determining how to handle delicate ingredients like goat cheese and cherry tomatoes, ensuring consistent portions, and implementing mechanisms for even distribution and mixing of ingredients.
The Naperville location itself showcases the automated process to customers, featuring a large window that allows visibility into the preparation of finished orders. The restaurant also streamlines the ordering experience with digital menu boards and tablets for customer convenience. Despite the automated process, human hands still play a role in finishing off the bowls and salads.
While labor cost savings are a primary consideration, Sweetgreen emphasizes that it also seeks to improve accuracy and efficiency. By integrating automation, Sweetgreen has been able to reduce labor requirements compared to traditional locations, particularly during peak periods. The Infinite Kitchen can handle up to 600 bowls an hour and requires only half the workers typically found in a traditional Sweetgreen location. Employees are responsible for setting up, monitoring, and cleaning the system, but training and overall operations are expected to become more streamlined in the future.
Overall, Sweetgreen is optimistic about the benefits of automation, both in terms of cost savings and operational improvements. The company’s foray into automation reflects its commitment to innovation and the potential for transforming the restaurant industry.
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