Miso Robotics’ dynamic lab, located in the heart of Pasadena, California, showcases an intriguing mix of robotics achievements from the past as well as cutting-edge innovations being developed today.
Among the notable inhabitants of this lab are the quirky robots Sippy, Chippy, and Drippy, with the spotlight firmly on Flippy—Miso’s advanced robotic arm capable of efficiently frying French fries and chicken nuggets at a speed humans struggle to match.
Miso Robotics holds significant stakes in persuading fast-food chains to integrate Flippy into their operations, particularly as the restaurant industry grapples with soaring operational costs driven by rising minimum wage standards in California and beyond. The company stands among several tech startups aiming to offer creative solutions to help hospitality businesses reduce expenses, address employee turnover, and process orders more swiftly.
“You’re never going to get rid of humans in restaurants, nor would you want to,” emphasized Miso Robotics Chief Executive Rich Hull. Flippy can process an impressive more than 100 fry baskets hourly, significantly outpacing the estimated 70 baskets that human workers can manage in the same timeframe. This innovation not only enhances productivity but also helps mitigate the risk of burns from scalding oil and falls on greasy floors for kitchen staff.
For years now, restaurant chains have been on a quest to integrate robotics into their kitchens. Several companies, such as White Castle, Sweetgreen, and Chipotle, are currently exploring ways to automate food preparation, yet the technology has yet to achieve full dominance in kitchens across the country.
“We are at the very, very early stage. The return on investment has not been proven,” noted John Gordon, a seasoned restaurant industry analyst and founder of Pacific Management Consulting Group. He acknowledged the existing potential in certain restaurants due to the repetitive nature of work that occurs away from customers’ eyes.
Sweetgreen, a fast-casual restaurant based in Los Angeles, has recently tested its innovative “Infinite Kitchen,” which employs machines to dispense and mix salad ingredients for human chefs to finalize. Early pilots of this technology, including one in Huntington Beach, reported enhanced order accuracy, reduced staff turnover, and a notable 10% increase in average sales during a recent earnings call.
Founded in 2016, Miso Robotics has conducted trials of earlier Flippy models at around 20 dining establishments, including notable brands like White Castle, CaliBurger, and Jack in the Box. White Castle has voiced intentions to follow through on plans to integrate Flippy into nearly one-third of its 350 locations across the Midwest and New York City.
However, the journey towards fast-food automation is littered with failures, with many companies, including Zume, which previously raised $450 million before ultimately shutting down, and DoorDash, halting operations for Chowbotics shortly after its acquisition due to unmet expectations.
Analysts suggest Miso Robotics is approaching a critical juncture. As of June 2024, the startup faced an accumulated deficit of $122.8 million and had just below $4 million in cash reserves. There are growing concerns regarding its sustainability, as highlighted in filings with the U.S. Securities and Exchange Commission.
Hull and his team are relatively new to the company, with Hull stepping in after former CEO Michael Bell’s termination in May 2023.
According to data from Pitchbook, Miso has successfully raised $126.5 million and is currently seeking additional funding. Analysts like Gordon emphasize that the company’s near-term prospects largely depend on securing more capital to accelerate sales.
An early investor in Miso Robotics, Hull, who has transitioned from being a Hollywood film producer and executive to leading the tech startup, asserts that the board and Ecolab—after investing $15 million—afforded him the opportunity to propel Miso’s growth akin to his achievements in the streaming sector.
“Innovation is not easy. It’s really hard. Now we have a seven-year head start on everybody else, but it’s messy,” Hull reflected. “I love messy. That’s always been my thing.”
In the coming year, the company aims to significantly expand its production capabilities to fulfill incoming orders, with Hull expressing ambitions for Miso to achieve profitability by the end of 2026.
Some labor experts remain skeptical about whether automation genuinely benefits workers. Brian Justie, a senior research analyst at UCLA’s Labor Center, visited a eatery utilizing Flippy last summer.
“Whether or not it’s faster or cheaper than a … traditional restaurant, I think what it very clearly was, it was fewer people doing pretty much the same amount of work or more work with a limited menu,” he said.
During a recent demonstration at Miso Robotics’ lab, Hull showcased notable advancements made to Flippy, including a design that allows it to fit comfortably beneath kitchen exhaust hoods and above fryers in compact spaces. Enhanced artificial intelligence capabilities now minimize food waste and amplify durability, enabling the robot to troubleshoot its operational issues or alert customer service before malfunctions arise.
Miso Robotics has also experimented with other robots designed for different culinary tasks, such as Sippy for drive-through drink dispensing and Chippy for creating seasoned tortilla chips. However, Hull revealed the engineering team’s current focus is squarely on optimizing Flippy for frying purposes. Initially designed to cook burgers when launched in 2017, Miso pivoted towards fried foods after identifying a more lucrative revenue stream.
The company asserts that automating fry stations through Flippy heralds a potentially lucrative revenue stream of $3.5 billion in a market that remains largely fragmented and ripe for a company with Miso’s initial advantages.
Restaurants have the option to purchase or lease Flippy, with Miso also generating revenue through maintenance, software updates, and tech support. Most establishments opt to lease Flippy for between $5,000 and $6,000 monthly, with pricing influenced by various factors including the number of fryers in operation.
Various chains, including Panera, Jack in the Box, Chipotle, and Buffalo Wild Wings, have been piloting Miso’s robotics technology since 2021. While many of these companies have chosen not to divulge specifics on cost savings from the robots, positive side effects have been noted.
At White Castle, for instance, Flippy robots have enabled staff to concentrate on enhancing customer interactions and ensuring order precision, according to Jamie Richardson, the chain’s vice president of marketing and public relations.
Recognizing a need for enhanced efficiency, White Castle turned to Miso after discovering that employees juggling duties at both the drive-through and fry station were often overwhelmed by multiple responsibilities simultaneously. In partnership with SoundHound, they are also testing an AI voice assistant named Julia, named after a cherished White Castle host from the 1930s. Meanwhile, McDonald’s concluded an unsatisfactory pilot program with IBM due to issues with understanding spoken accents in June 2024.
While several variables complicate the assessment, White Castle has yet to quantify if Flippy has contributed to improved employee retention, though feedback from staff has been overwhelmingly positive.
“People who come to us want hot and tasty, affordable food,” Richardson stated. “If you can take the pain points out of that, if you can reduce the friction, everybody wins.”
Curt Garner, Chipotle’s chief customer and technology officer, shared insights about their prior experiments with Miso’s tortilla chip-making robot, which took place at an Orange County outlet from 2021 until 2023. Despite the conclusion of that pilot, Garner asserted that lessons learned continue to shape their approach to product development.
Chipotle has proactively invested $100 million in a venture fund that backs various startups, including Vebu Labs helmed by Miso Robotics’ president and board chair, James Jordan. Their collaboration birthed Autocado, a machine that efficiently cuts, cores, and peels avocados before human workers create guacamole by hand. Furthermore, Chipotle has also backed San José-based Hyphen to build a tech-enhanced assembly line that automates bowl and salad preparation, leaving employees free to focus on burritos, tacos, quesadillas, and children’s meals.
Jot Condie, president of the California Restaurant Association, pointed out that the COVID-19 pandemic has accelerated the industry’s pivot towards automation and technology. He predicts that most adoption advancements will happen in fast-casual establishments, where convenience and efficiency reign supreme, contrasting with full-service dining experiences where human interaction is pivotal.
“Quick service restaurants like Chipotle that have the ability and the resources to invest and adopt technologies will sort of lead the way,” he stated.
– Queenie Wong for the Los Angeles Times
**Interview with Rich Hull, CEO of Miso Robotics**
**Editor:** Thanks for joining us today, Rich. Miso Robotics is clearly making waves in the restaurant industry with innovations like Flippy. Can you explain what sets Flippy apart from other kitchen automation solutions?
**Rich Hull:** Absolutely! Flippy is designed with advanced capabilities that enable it to fry food at a speed that’s simply unmatched by human staff. It can process over 100 fry baskets an hour, which not only boosts productivity but also significantly reduces risks related to kitchen accidents. We’re continuously improving its AI to further enhance efficiency and reduce food waste.
**Editor:** That sounds impressive. There’s a lot of discussion around the impact of automation on human jobs. How do you see Flippy complementing human workers in restaurants?
**Rich Hull:** That’s a crucial point. We believe that automation won’t replace humans in restaurants; rather, it’s here to assist them. Our goal is to allow workers to focus on enhancing customer service and other vital tasks while Flippy manages the more strenuous and repetitive cooking processes. The feedback we’ve received shows that staff appreciate the relief from these high-pressure responsibilities.
**Editor:** You’ve mentioned that Miso Robotics is seeking further funding and facing critical challenges. What steps are you taking to ensure the sustainability and growth of the company?
**Rich Hull:** We’ve raised significant capital already, over $126 million, but we know securing additional funding is essential for scaling our production capabilities. We’re strategically targeting more restaurants to integrate our technology, and we’re focused on proving the return on investment that many are looking for. My vision is for Miso to achieve profitability by 2026.
**Editor:** Miso has faced challenges like other companies in the space, such as Zume and DoorDash. What lessons have you learned from these experiences that you apply to Miso Robotics?
**Rich Hull:** The startup landscape is inherently risky, and not every venture will succeed. One critical lesson is the importance of understanding market needs and ensuring that our technology is adaptable to them. We’ve put a lot of effort into developing Flippy’s design to meet the actual environments in which it will operate, learning from both our successes and setbacks along the way.
**Editor:** Lastly, can you share what’s next for Miso Robotics in terms of product development or partnerships?
**Rich Hull:** We’re currently focused on optimizing Flippy and exploring ways to enhance our other robots like Sippy and Chippy. We’re also developing partnerships with various chains to test and implement our technology, which not only validates our solutions but also helps us gather valuable data on performance and customer satisfaction. Our goal is to solidify Miso Robotics as a leader in kitchen automation and to continue innovating in this space.
**Editor:** Thank you, Rich, for taking the time to discuss the exciting developments at Miso Robotics. We wish you the best as you push the boundaries of restaurant automation!
**Rich Hull:** Thank you for having me! It’s an exciting time for us, and I appreciate the opportunity to share our vision.
