In the post Covid19 world, is there a place for robot baristas? The concept is not new – the venture-backed Cafe-X retreated in 2019 with a number of shop closures. Unfortunate timing considering the potential uptick following the closures of the traditional cafes in Q1 2020 due to the virus.
The question being asked in the retail industry now is simply, what happens next? Will customers return to their previous patterns of behaviour, and if not what will it look like.
While analysts fervently polish their crystal balls, most agree that there will be some changes, and that’s likely to present a challenge to cafe’s who’s fixed overheads require volume to make them commercially viable. A quick review of small business economics:
Fixed Overheads
- Rent
- Business Rates
- Salaries
- Equipment Leases
Of these, we all know landlords are not known to be the most sympathetic bunch, and while supply and demand might drive future prices down, most cafe’s will be locked into leases for a number of years. So, the only fixed cost that can be tweaked, salaries.
Enter the Robot Barista
The Chinese have two words that form the word Crisis – Wei ji (danger), but that second word is also used to mean ‘Opportunity’. In this spirit, is now the time for the Robot Barista to go mainstream?
Some people with big pockets think so, even Jeff Bezos, the CEO and founder of Amazon and renowned futurist has put money into the development of robotic baristas. His investment in ‘Rethink Robotics’ to develop one, failed to get off the ground and was sold to Hahn Group, who is repurposing the technology.
Cafe-X
Cafe-X has pulled back from their expansion plans last year closing their San Francisco shops. After taking in $14.5m in total funding according to Crunchbase, the board must be reconsidering whether their strategy may be more successful post-Covid.
Briggo Coffee
Briggo takes a different approach, which is more of a customised vending service, backed up with an App and social features. It feels a little more focused and scalable compared to Cafe-X. In fact, their business is based on a franchise model, where scalability is required.
Each robot mechanism costs Briggo a reported $50,000 to build, and Briggo has taken a different approach to others in the space by avoiding an anthropomorphic design, choosing instead to de-emphasise the robot arm and hide everything inside a bright and modern exterior.
This is a clever move as it positions them as a serious beverage provider rather than a novelty. Fast Company agrees listing them as one of the “worlds most innovative companies in 2019”.
According to reports, the coffee is actually pretty comparable to the major coffee chains. They have options for hot and iced coffees, milk and alternatives are catered for, but they do not offer any food items, however.
What they do have is an app, available for Android and Apple smartphones, it allows you to pre-order your coffee and then collect it, as well as do the usual things you’d expect, like store your favourite drinks for fast reordering. The app gets average reviews on the app store, but the company responds to each one, which is a great indication they are listening and working to understand how the market wants to interact with them.
| Item | Details |
|---|---|
| Dimensions | 10'5" wide x 3'10" Deep x 8'4" High |
| Electric Service | 208/120VAC, 3 Phase |
| Domestic Water | minimum 5gpm @60psi |
| Waste Water | minimum 20gpm capacity |
| Internet | at least 10Mbps down, 10Mbps up |
MontyCafe
The MontyCafe is another franchise operator based out of Russia that has taken the opposite approach. Putting their ‘Robot’ at the centre of attraction behind a glass front, they make can serve coffees as well as serving soft ice cream and ‘maffins’?
While referring their prospective customers to a technical User Interface that allows them to monitor:
- Sales volumes
- Stat by product/time
- Product onsite
- Notifications
- PC/App
- Price control
The tool for this monitoring, however, shows what appears to be a screenshot of Google’s web analytics.
Rozum Cafe
Rozum is a robotics company coming out of Belarus, and are tackling the market with a lower-barrier for investment – their robot arms start at $20,000. Their website explains their offering clearly and gives you a choice of ordering the standard robot or getting customisations.
The robot arm itself does look a bit like something you would build with a home Meccano set, but it has a number of benefits, Namely:
- Customisation options
- Low entry-cost
- Works with a Nuova Simonelli espresso machine
A potential downside compared to Briggo is the lack of an app and reliance on using a touchscreen interface, which will be viewed as a source of germs.
You are restricted to the internal grinder they choose, and the integrated fridge for the milk indicates no options currently for alternatives.
TrueBird Coffee
This venture based out of New York, Truebird wants to bring quality coffee to the experience, but at an affordable price – a noble pursuit! Their website says they will be launching in 2020 in several locations in New York. Here’s what they say about their approach.
In partnership with top coffee roasters, our Micro-Cafe brews amazing drinks every time, from simple espressos to luxurious lattes. Our compact design and easy installation open up a world of new location possibilities for specialty coffee.
https://www.truebird.com/
The Future of Robot Coffee
There was a lot of momentum in the market in 2019, and the Covid virus is probably going to accelerate investment into a new franchise model, either based on vending like Luckin coffee is doing in China, or in the Robot Barista.
It seems likely for the near future that this will be aimed at high traffic sites where quality needs to be comparable to a major chains coffee. The speciality coffee sector has a customer base that may be unwilling to pay premium prices for the coffee without the full experience that goes with it.
