The question: “Do you want to spend your life flipping burgers?” has been asked countless times over the years.
Parents and teachers have asked this question to encourage students to improve grades or not drop out of school.
A large portion of fast food kitchen workers could become another victim of automation within a few years.
A relatively small California company, Miso Robotics, is about to revolutionize fast food kitchens.
The six-year-old company has developed four robots that replace human employees, reduce costs and increase efficiency.
One robot flips burgers, one does fries, one recognizes, grabs and cooks different foods, and one automatically dispenses beverages.
From trials at various chains, Miso learned the robots can increase profits from five per cent of sales to 14 per cent.
Increased profit comes from a 75 per cent reduction in employees, no paying for coffee or lunch breaks or holiday pay, and less food waste.
Employees are trained in the technology to operate and maintain the robots.
The fast food outlets have no up-front investment as they are charged a monthly fee of “a few thousand dollars.”
With around 280,000 fast food chain outlets in the United States, Miso has a wide open market.
Four other companies are developing robots in the fast food sector, with one a hamburger flipper, two making pizza and one making vegetable bowls. None seems as far advanced as Miso.
Miso has placed robots in pilot trials in fast food chains with more than 84,000 stores. Some of the batter known brands are Arby’s, Baskin-Robbins, Sonic, Jack in the Box, Chipotle, Panera Bread, and White Castle.
The 375-unit White Castle chain placed one robot two years ago, soon ordered 10 more and this year ordered 100. That represents the kind of exponential growth Miso could experience.
CEO Ray Bell says whenever they demonstrate products they are asked if they can solve other problems in the food prep/cooking end, so there are lots of opportunities.
Until last year, Miso relied solely on preferred share investments for funding. Preferred shares were converted into common shares with a $22 million share offering in June and another $15 million this month.
The current offering has a $15,000 maximum and a $995 minimum investment. The company has 20,000 shareholders with latest price around $11.
Given the shortage of labour, the American average of $15.50 an hour for fast food workers and the pressures of inflation, the robots must be a no-brainer for operators.
Who would want to do that job in the heat and pressure for $15 an hour anyway?
The European market where wages are 50 per cent higher than in the U.S.A. will soon get robots from Miso.
With only $32,000 sales in 2021 and $82,600 in the first six months of this year Miso is still in the early development stage and represents a high level of risk for existing and new investors.
The future looks fantastic as long as the company maintains focus and financing. Current market value is nearing $500 million — rather high considering the negligible revenues. Enthusiasm has pushed up prices.
CAUTION: Remember when investing, consult your adviser and do your homework before buying any security. Bizworld does not recommend investments.
Ron Walter can be reached at ronjoy@sasktel.net
The views and opinions expressed in this article are those of the author, and do not necessarily reflect the position of this publication.
