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Automation yields multiple benefits in the coffee category

Operators drive increased efficiency, consistency, and improved experiences for both employees and customers.

Sponsored by SEB Professional

Today’s quick-service restaurant environment poses significant challenges for operators, amid rising cost pressures and consumers’ increasing demands for speed and convenience.

The financial pressures on today’s operators include a difficult labor environment, high commodity prices, and interest rates that make borrowing more expensive, among others.

According to the 2024 State of the Restaurant Industry report from the National Restaurant Association, 98% of operators say higher labor costs are an issue for their restaurant, 97% say higher food costs were an issue, and 38% report that their restaurants were not profitable last year.

At the same time, restaurants have also been battling to drive their top lines as inflation has made consumers more cautious in their spending.

Although some indicators have recently begun trending favorably for the industry, financial pressures remain intense, and operators will continue to benefit from investments in efficiency, according to industry observers.

“Technological innovation is the real game-changer that could have an impact on bottom lines in 2024,” Bank of America said in a recent report on the industry. “From answering phones and taking orders to upselling customers and managing inventory, the potential for advanced technologies to introduce efficiencies is growing at a rapid pace. Restaurant operators that can leverage those capabilities while continuing to adapt to the ever-shifting consumer landscape will be well-positioned for growth in the year ahead.”

Automated coffee equipment is another example of how technological innovation can streamline labor processes, helping drive not only increased efficiency, but also order accuracy, cleanliness, waste reduction, and increased satisfaction for both customers and employees.

Coffee consumption continues to gain momentum

While a large number of consumers have been squeezed by financial pressures, a recent report from the National Coffee Association finds that overall coffee drinking has strengthened in the past year. While in-home coffee consumption increased in 2023, there was also an increase in specialty coffee penetration, which historically is purchased out of the home.

Additionally, research shows that consumers continue to drink more coffee. About two thirds of Americans—67%—surveyed by the NCA say they consumed at least one cup of coffee in the past day, an increase of three percentage points vs. a year ago, and nearly six in 10 had at least one cup of specialty coffee in the past week, up four percentage points.

“Coffee continues to be fundamental to morning rituals,” the report concludes, noting that 84% of consumers who had a cup of coffee in the past day drank it with their breakfast.

Among other data from the research:

Coffee consumption is most prevalent among consumers aged 25 and older, although young consumers are largely behind the growth if iced coffee.

• Consumers aged 60 and older are the most likely to order traditional and decaf coffee.

• The use of sweeteners in coffee has been increasing, with 52% of coffee drinkers reporting adding sweeteners or syrups to their coffee, an increase of 7 percentage points over last year’s survey.

• Consumers may be shifting to slightly larger portions. Among those who have consumed coffee in the past day, 56% opted for medium size, while orders of small coffee decreased by 4%.

Consumers are also seeking a fast and efficient experience when they visit a restaurant. Technologies that allow customers to order ahead for in-store pickup using their phones, and apps that streamline the checkout process are among the innovations that have raised the bar for customers.

How automation can help

Operators have adopted automated technologies across a broad range of functions in the foodservice industry. From automated inventory systems to robotic fryers, new technologies are helping operators streamline their systems and “do more with less.”

Beverage equipment, including automated coffee, is another area in which technology is driving efficiencies. Automated coffee makers can increase a restaurant’s coffee quality, simplify training, increase order accuracy and reduce waste, all of which create a better experience for both workers and customers.