1、The Future of Fast Food:How robot chefs,virtual ordering,and autonomous delivery will feed us in 20302022Where is all this data from?The CB Insights platform has the underlying data included in this reportClick here to sign up for free3THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUT

2、ONOMOUS DELIVERY WILL FEED US IN 2030Table of ContentsWhats at stake?6Virtual restaurants 9AI tongues and social listening 13Conversational AI and AI-powered recommendation engines 17Robotic food preparation 20Autonomous delivery 24NFT loyalty programs 27Looking ahead 304THE FUTURE OF FAST FOOD:HOW

3、ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030The fast food experience of the future will be built on key technologies such as:The metaverse,which will become an extension of the brand experience AI tongues and social listening to help brands quickly develop and test new m

4、enu items and meet consumer demands Conversational AI and AI-powered recommendation engines that will handle online and in-store orders,allowing restaurants to upsell orders through personalized suggestions and prioritize labor for other customer service operations Robotic food preparation that will

5、 automate cooking to increase profitability and reduce food waste Autonomous delivery that will help reduce reliance on gig workers NFT loyalty programs that will create unique experiences and boost customer loyaltyBelow,we dive into these technologies:how they work,who has an edge,and how theyre sh

6、aping the future of fast food.We dive into the evolution of fast food and where the technology is going next,from conversational AI to NFT loyalty rewards.5THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030The following graphic follows the fast food

7、 journey of a customer named Rachel,featuring the technologies and innovations that will impact her experience.6THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030WHY IT MATTERSExisting and emerging technologies in robotics,AI,and digital engagement

8、technology can not only help restaurants streamline operational processes,but also create personalized,seamless brand experiences for fast food customers.Improving the customer experience will help restaurants grow and maintain loyalty in the competitive restaurant landscape.In turn,solutions that h

9、elp offset restaurants key operating costs are gaining traction,with 2022 funding for restaurant tech projected to reach more than$6.5B which would surpass 2021 and be more than double the amount raised in 2020.As the future of fast food begins to take shape,laggards will be left behind compared to

10、competitors that have been proactive about exploring these new technologies.WHY NOWThe rising costs of supplies,labor,and rent have put a squeeze on the restaurant industrys already slim profit margins.To succeed in this challenging macroeconomic environment,investing in tech solutions that can boos

11、t profit margins,increase loyalty,and maximize productivity is more important than ever.At the same time,the Covid-19 pandemic has shifted diners habits:today,upwards of 80%of fast food is estimated to be consumed off-premise via drive-thru or delivery.This signals how the fast food industry is chan

12、ging and poses an opportunity for players to rethink how brick-and-mortar locations are being optimized to address consumer demand.Whats at stake?7THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030This shift also shows how restaurants need to more h

13、eavily focus on the customer experience beyond the boundaries of a brick-and-mortar location.With the majority of brand interactions(i.e.,ordering and eating)now taking place outside the restaurant,fast food brands and other food service players need to ensure these touchpoints meet consumer expecta

14、tions and deliver brand value.WHO NEEDS TO PAY ATTENTIONThe future of fast food involves a variety of players,such as global quick service restaurant(QSR chains)moving the industry forward(McDonalds,Chipotle),tech leaders providing digital services(Google,Meta),and robotics manufacturers pairing sof

15、tware and hardware to automate operations(Hyundai,Nuro).Through strategic relationships,these companies will work together to create the future of fast food that expands beyond the boundaries of the brick-and-mortar restaurant.Beyond these players,companies throughout the restaurant and food service

16、 industry will be impacted by the future of fast food.Examples include food suppliers(Tyson Foods,JBS)and food service companies(Sodexo,Compass),as well as last-mile delivery companies(DoorDash,Deliveroo).8THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US

17、IN 20309THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030In 2030,the metaverse will be a new digital channel for restaurants to offer engaging,interactive experiences that boost brand awareness and customer experience.In the metaverse,customers can

18、 step into a virtual restaurant to browse menus,meet friends,and even order real food that will then be delivered to their door.WHAT IS THE METAVERSE?The metaverse is the concept of shared worlds driven by virtual products and digital experiences that are highly immersive and interactive.CLIENTS CAN

19、 LEARN MORE ABOUT WHAT COMPANIES ARE MAKING UP THE METAVERSE IN OUR METAVERSE MARKET MAP.Virtual restaurants emerge as new digital channels in the metaverse10THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030In the context of the future of fast food

20、,restaurants will be able to build virtual experiences,offer exclusive menu items or digital merchandise,and host virtual events for customers.FIRST MOVERSChipotle was one of the first QSR brands to create a virtual experience in the metaverse.In 2021,the fast-casual Mexican chain partnered with Rob

21、lox to digitize the brands famous Halloween promotion.Players could dress their avatars in Chipotle Halloween costumes,play mini-games,and receive codes for free burritos to redeem in person.During the campaign,the virtual restaurant was visited over 8M times and set a company record for digital sal

22、es in a single day.In 2022,the fast-casual giant even launched a new menu item on Roblox through an interactive game.McDonalds also made an entrance into the metaverse with a Chinese Lunar New Year event.Partnering with AltspaceVR and Spatial,the brand designed a hall of Chinese zodiacs that players

23、 could explore through VR.The QSR giant has also filed trademark applications that suggest a virtual restaurant may be opening soon that sells both virtual and actual goods with home delivery.11THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030 SOUR

24、CE:WENDYSWendys is another fast food chain experimenting with the metaverse.Wendyverse opened in Horizon Worlds(Metas virtual reality world using the Oculus VR platform)in April 2022.Through this partnership with Meta,players were given a set of tasks to complete that would give them a promo code to

25、 redeem at a real Wendys restaurant.IMPLICATIONS The metaverse gives restaurant chains space to experiment with marketing and menus.Fast food chains investing in the metaverse can use the virtual space to try out new strategies that build brand awareness among new and existing audiences.This can inc

26、lude collaborations,virtual events,or even just experimenting with tweaks to existing considerations,like restaurant layout and menu items.12THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030 The metaverse is still in its early stages.Restaurant bra

27、nds and operators should pay attention to the successes and failures of other consumer industries like fashion and grocery that are further ahead in their metaverse efforts,to better understand what strategies work best with consumers.The metaverse will be an additional channel for facilitating deli

28、very orders and can help drive consumers to stores,growing both revenue and customer loyalty for restaurant brands.13THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030In the future,restaurants will be able to create and test new menu items in a fast

29、er,less wasteful,and more cost-efficient way.Combining AI tongues and social listening,restaurants can identify early trends as well as tweak recipes and menus to grow revenue.WHAT ARE AI TONGUES AND SOCIAL LISTENING?AI tongues and social listening are separate technologies that can work together to

30、 speed up R&D.AI tongues use sensors and artificial intelligence to replicate how humans will perceive a taste allowing for rapid taste tests without relying on human subjects.Social listening technology taps into consumer sentiment conveyed in social media posts,online reviews,and other forms of di

31、gital content to generate actionable insights about what new ingredients,flavors,or habits might be gaining popularity.By combining these solutions,restaurants can predict what new items will gain traction with consumers and hone recipes and flavors that are likely to appeal to a broad variety of ta

32、stes.Detecting these new consumer habits early on can also help restaurants adapt other considerations beyond taste,including opening hours,layout,and category offerings.FIRST MOVERSBecause this technology is still relatively nascent,first movers have typically been in the CPG industry,where players

33、 have expansive brands and product lines to experiment with novel ingredient technologies.AI tongues and social listening can help reduce R&D costs14THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030In 2019,McCormick&Company partnered with IBM and i

34、ts newly developed Hypertaste,an AI-assisted“digital tongue.”McCormick says that it reduced the time it took to develop new products by 70%and that it was able to tweak formulations between 50 and 150 times before finalizing.SOURCE:IBM Tastewise uses AI and social listening across data sources like

35、menus,reviews,and social media to create dynamic dashboards for restaurants,food service,and CPG companies on consumer trends.The company has raised$25M since 2019.Using similar data sources,Singapore-based AI Palette tracks ingredient and flavor trends across 15 different languages to identify oppo

36、rtunities for new products by geographic region.It also predicts how long consumer demand might last.Both startups have partnerships with large CPG companies like Nestle,Pepsico,and Kelloggs.15THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030 FOR M

37、ORE INFORMATION ON WHAT EARLY-STAGE COMPANIES ARE DISRUPTING FOOD AND BEVERAGE R&D,READ OUR EARLY-STAGE FOOD&BEVERAGE PRODUCT DEVELOPMENT AND DISTRIBUTION MARKET MAP.IMPLICATIONS AI tongues and social listening technology can help restaurants release new menu items in a fraction of the usual time:tr

38、aditional R&D can take around a year for restaurants.This tech can help restaurants reduce uncertainty and timelines around product development,meet evolving consumer expectations,and stay ahead of competitors.Restaurants should evaluate partnering or investing in AI tongues early.Because the techno

39、logy is still nascent,providers will be more likely to form exclusive partnerships to test and scale capabilities giving both sides advantages over competitors.16THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030 Restaurants should prioritize social

40、 listening tools that can easily incorporate new and emerging platforms and social media to get a more accurate picture of consumer sentiment and boost loyalty.These technologies can also help restaurants tweak items to better match regional tastes,making new items more successful and profitable.17T

41、HE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030In the future,conversational AI and AI-powered recommendation engines will make ordering food more human-friendly,accessible,and convenient.These technologies will be able to power drive-thrus,smart s

42、peakers,apps,and even metaverse avatars,allowing customers to simply speak their order wherever they may be while the restaurant makes hyper-relevant recommendations that can increase order value.WHAT ARE CONVERSATIONAL AI AND AI-POWERED RECOMMENDATION ENGINES?Conversational AI allows customers to i

43、nteract with software using their voice or text(via chatbots),with natural language processing(NLP)allowing for human-like communication.AI-powered recommendation engines use data to develop personalized recommendations for customers.By pairing these technologies,restaurants can create virtual order

44、ing assistants that can take orders,upsell,integrate loyalty,and answer questions from guests,allowing restaurants to prioritize staff for other tasks like food prep or order fulfillment.Conversational AI and AI-powered recommendation engines increase check size and provide first-party data18THE FUT

45、URE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030FIRST MOVERSIn a rare move for the fast food giant,McDonalds acquired AI-powered recommendation engine Dynamic Yield in 2019.While McDonalds ended up selling the company to Mastercard 2 years later so Dynam

46、ic Yield could scale to other industries,McDonalds still has a partnership that integrates Dynamic Yields software into its drive-thrus and app.Through this collaboration,McDonalds can dynamically change menu boards to make smarter suggestions to customers based on time of day,weather,restaurant tra

47、ffic,and trending items.Meanwhile,the applications of conversational AI for restaurants are not limited to just drive-thrus the tech could also be used for customer-facing interfaces like phone and SMS orders,voice assistants,and mobile apps.Dominos has partnered with ConverseNow which provides conv

48、ersational AI for phone orders.After an order is placed through ConverseNows software,which is integrated with the existing point-of-sale system,employees can immediately see the order and prepare it.ConverseNow also provides conversational AI for drive-thrus and has raised an$11M Series B round in

49、Q322.Recently,Panera announced a partnership with OpenCity to begin testing their conversational AI in select drive-thrus.Finally,one key instance of a QSR combining these two technologies is Wendys partnership with Google Cloud.Through Googles speech-to-text technology,Wendys can take drive-thru an

50、d phone orders and then in future instances use voice recognition to make personalized recommendations for the customer.19THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030IMPLICATIONS For restaurants with drive-thrus,conversational AI can help redu

51、ce labor costs and increase average order size.AI tools can also personalize order recommendations based on local preferences,weather,and item availability.Using this technology to cross-sell during order flows has been shown to increase sales by upwards of 10%.To best facilitate consumer adoption,t

52、hese solutions should initially be positioned in scenarios where guests arent expecting to interact face-to-face with employees,like at the drive-thru speaker.Conversational AI solutions can also be integrated into smartphone apps,which can improve accessibility for disabled users.Restaurants should

53、 keep in mind that potential challenges to conversational AI can come from unexpected requests or substitutions made by customers,meaning that some sort of human staff will need to be available in these situations.Additionally,programs will need to be updated with any menu changes or limited edition

54、 items.The back-end data collected by conversational AI and AI-powered recommendation engines adds another layer of value that would be more difficult to synthesize with human employees.Integrating AI solutions throughout the order flow can help restaurants A/B test different strategies to help incr

55、ease check size.20THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030In the future,fast food restaurants will have adapted their store layouts to rely exclusively on robotic food preparation to cook menu items.Robots will work in sync to fill orders,

56、account for customer substitutions,and communicate with autonomous delivery vehicles to quickly bring customers fresh,accurate orders.WHAT IS ROBOTIC FOOD PREPARATION?Robotic food preparation hardware companies develop robotic systems that leverage AI and machine learning to cook,assemble,and packag

57、e meals.Cooking robots can cook food more consistently and with fewer errors(like over or undercooking),leading to less waste and higher customer satisfaction.Some can be retrofitted to existing kitchens,while others are stand-alone machines.FIRST MOVERSOver the past year,Miso Robotics has racked up

58、 a significant number of partnerships with national QSR chains like Chipotle,White Castle,and Buffalo Wild Wings to automate cooking foods like tortilla chips,burgers,and chicken wings.In Q421,the company raised a$35M Series D round,bringing its total funding to$66M.Robotic food preparation improves

59、 order accuracy as it moves toward price parity with human labor21THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030 SOURCE:MISO ROBOTICSWhile US brands have significantly ramped up on these partnerships in the last 12 months,cooking robots have alr

60、eady seen significant activity in regions like Asia.For instance,in 2020,KFC partnered with Hyundai robotics in Korea to develop robot chefs.22THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030To dig deeper into this market landscape and connect dir

61、ectly with vendors,check out the Automation in Restaurant Tech Expert Collection and interactive Tech Market Map.IMPLICATIONS While initial investments in these solutions can be expensive,national QSR chains have begun significant partnerships and testing,paving the way for lower costs in the future

62、.Leaders like Miso Robotics are looking to cut the cost of robots by a third to roughly$20K per robot.Restaurants that are looking to test robotic food preparation without fully investing in buying robotics should consider startups that offer Robots-as-a-Service(RaaS)models.In many cases,the cost pe

63、r hour is cheaper than a part-time employee.23THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030 Robotic food preparation tech for performing a simple repetitive task efficiently,like flipping burgers or manning fryers,has seen the widest adoption i

64、n the space.Restaurants should think strategically about how robotic food preparation can be used in their current menus or how new menu items can be created to prioritize these preparation methods.Robotic food preparation can help reduce food waste.Because these robots reduce human error,like burni

65、ng food or cross-contamination,they also help with margins by reducing food waste and enabling more standardized quality control across locations.24THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030In 2030,autonomous vehicles will be routinely deliv

66、ering food on behalf of restaurants opening up new opportunities for these companies to create new customer experiences(like 24/7 delivery)and lowering customer costs by removing outlays like the expectation to tip.WHAT IS AUTONOMOUS DELIVERY?Autonomous delivery uses ground-based robots or aerial dr

67、ones to automate the delivery process,often incorporating features such as temperature control and tracking for perishable goods.Some autonomous logistics vehicles are designed to travel on roads alongside passenger cars,while others are designed for use on sidewalks.FIRST MOVERSEarly players in aut

68、onomous ground vehicles include unicorn Nuro,who has received funding from Chipotle and has partnered with Dominos.In Q322,Uber Eats announced a 10-year partnership with Nuro to make deliveries in Texas with plans to expand to California.SOURCE:DOMINOSAutonomous delivery lets brands own the delivery

69、 experience25THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030Refraction AI,another player in the space,partnered with Chick-fil-A in 2022 to begin testing autonomous delivery.Both Nuro and Refraction AI use self-contained vehicles smaller than the

70、 average car to make contactless deliveries.In drone deliveries,Flytrex has seen significant activity from restaurants.In 2022,the company partnered with Brinker International,the holding company of Chilis Grill&Bar and Maggianos,as well as sandwich chain Jersey Mikes.These partnerships point to the

71、 broader corporate interest in drone delivery.IMPLICATIONS Autonomous delivery still faces a number of barriers on the path to commercialization,most notably a complex regulatory environment that has made it challenging to launch and scale services.However,restaurants should monitor early movers tha

72、t have been announcing regional tests in the past year.26THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030 Drone delivery offers a number of advantages over ground-based alternatives.For example,drones can carry out deliveries more quickly and affo

73、rdably(and have been shown to reduce energy usage by about 90%),without adding to road traffic or burning fossil fuels.This can also mean that orders will be fresher they arrive.Restaurants should begin investing in their own fleet or partner with third-party autonomous vehicle providers to help red

74、uce delivery fees,reduce reliance on gig workers,and have more control over the branded delivery experience.As autonomous delivery grows,restaurants should evaluate how restaurant layout and location will need to adapt.For instance,consider where autonomous vehicles will be stored when not in use an

75、d where staff will load the vehicle with orders.Also strategize how different geographies(such as dense,urban areas)might be more suited to smaller ghost kitchens with drones versus full sit-down restaurants with wheeled vehicles.27THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOM

76、OUS DELIVERY WILL FEED US IN 2030In the future,brands will reward their most loyal customers with one-of-a-kind NFT-based collectibles and experiences to attract younger customers.They will also collect insightful first-party data through resales and trades of NFTs.WHAT ARE NFT LOYALTY PROGRAMS?Non-

77、fungible tokens,or NFTs,are a blockchain-based way to prove ownership of digital assets which can range from images to songs to videos to clothes for avatars.NFT loyalty programs can be integrated into an existing digital loyalty program and can allow new ways for brands to interact with customers.N

78、FTs that provide customers with more use beyond the digital asset itself,such as access to exclusive events or physical products,are called utility NFTs.Utility NFTs help brands build communities with consumers post-purchase and better connect virtual and IRL experiences.Restaurants can capture high

79、-value customers with NFT loyalty programs28THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030FIRST MOVERSIn Q322,Starbucks announced that it will be rolling out an NFT loyalty program called Starbucks Odyssey.The QSR giant,which generates over half

80、 its sales from rewards members,wants to use the program to build deeper emotional connections with customers by creating an immersive brand experience that rewards participants with NFTs.While Starbucks is one of the first QSRs to embed NFTs into their loyalty program,other national chains have exp

81、erimented with the medium.In early 2021,Taco Bell sold 5 NFTs to raise money for its charity The Taco Bell Foundation.Similarly,Dominos used the attention garnered from its NFT sales to sell merchandise for its nonprofit Dominos Partners Foundation.SOURCE:RARIBLE29THE FUTURE OF FAST FOOD:HOW ROBOT C

82、HEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030IMPLICATIONS As customers smartphones become increasingly crowded with apps dedicated to loyalty programs and a barrage of notifications,NFT loyalty programs give brands the opportunity to offer a differentiated value proposition by o

83、ffering unique rewards and experiences,virtual or otherwise.Restaurants with customers that already value the brands digital assets(like Starbucks)will likely find more success with NFTs.Restaurants without this established digital presence need to consider how they can connect an NFT to substantive

84、 rewards,like award points or exclusive access,to make them meaningful for consumers.Restaurants can take advantage of the exclusivity or status early adopters associate with NFTs.Because NFT owners derive value from the NFTs scarcity,customers are more likely to display and share the branded token

85、on a public platform like a social media account.Through NFTs,brands can also appeal to a younger demographic that is more likely to actively seek out and engage with these types of rewards.However,the size of the addressable audience could present a challenge as adoption among consumers remains low

86、.30THE FUTURE OF FAST FOOD:HOW ROBOT CHEFS,VIRTUAL ORDERING,AND AUTONOMOUS DELIVERY WILL FEED US IN 2030The future of fast food will center around automation and digitization solutions that increase productivity,boost profits,and enhance customer engagement.By combining technologies like AI and robo

87、tics,restaurants can provide personalized recommendations,fresher and more accurate orders,and faster delivery.While some of these technologies may require significant upfront investments,many are working towards price parity with existing operational models meaning that restaurants will be able to

88、keep prices low for customers.By continuing to experiment with and invest in novel technologies such as the metaverse,AI tongues,and NFTs,restaurants can adapt to changing consumer habits and offer an interactive dining experience that combines physical and digital elements.If you arent already a client,sign up for a free trial to learn more about our platform.Looking ahead