Adopting Server Robot in the Restaurant

The Case of Using Robot Servers in Restaurants
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Acknowledgment
Abstract
This research is aimed to serve as a guide for restaurant owners aiming to adopt robot servers. The purpose of the study is two-fold: firstly, to evaluate the effectiveness of robot servers in the restaurant industry based on existing evidence and to create a set of recommendations for restaurant owners based on the insights gleaned from the empirical evidence. The research is based on two case studies, including that of a Chinese restaurant, Heweilai, and a Japanese restaurant, Henn-Na. Both these restaurants adopted robots in the past decade and were forced to revert to the traditional, human-led service model after robots were found counterproductive (The Verge, 2016; Reis et al., 2020). Since both restaurants heavily invested in robotic technology, their failure bears valuable lessons for other industry players.
The case studies are synthesized with the existing literature on the subject matter to deepen the insights and identify potential themes. These themes provide direction for the recommendations while Technology Acceptance Model (TAM) underpins the data collection and analysis. Based on the findings, the restaurant owners are advised to keep the customers engaged during the implementation process. The restaurant owners can leverage the data storage capabilities of the robotic system to create a feedback loop that would enable them to keep the functionality of robots aligned with the customer needs. Besides, it is essential for the owners to gradually upgrade the system based on customers' feedback and keep the customers assured of such upgrades throughout the process. As for the appearance and choice between humanoid and zoomorphic or machine-shaped robots, it is important to refer to the cultural orientation and the most recent trends. The owners are advised to conduct surveys to gain insights about recent preferences among customers to bring precision to the visual appeal of robots.
Contents TOC \o "1-3" \h \z \u Acknowledgement PAGEREF _Toc121897190 \h 2Abstract PAGEREF _Toc121897191 \h 3Chapter One: Introduction PAGEREF _Toc121897192 \h 5Purpose PAGEREF _Toc121897193 \h 5Theoretical and ConceptualFramework PAGEREF _Toc121897194 \h 6Statement ofProblem PAGEREF _Toc121897195 \h 6Limitations PAGEREF _Toc121897196 \h 7Delimitations PAGEREF _Toc121897197 \h 7Assumptions PAGEREF _Toc121897198 \h 8Definitions of KeyTerms PAGEREF _Toc121897199 \h 9Chapter Two: Literature Review PAGEREF _Toc121897200 \h 10Introduction PAGEREF _Toc121897201 \h 10Growing Popularity and Ubiquity of Artificial Intelligence in Hospitality PAGEREF _Toc121897202 \h 10Potential Benefits of Robot Servers for Restaurants PAGEREF _Toc121897203 \h 12Relieving the Burden of the Human Resource Department PAGEREF _Toc121897204 \h 12Enhanced Efficiency PAGEREF _Toc121897205 \h 13From Marketing Perspective PAGEREF _Toc121897206 \h 14A Futuristic Approach PAGEREF _Toc121897207 \h 15Potential Challenges towards the Adoption of Robot Servers PAGEREF _Toc121897208 \h 15Empirical Evidence PAGEREF _Toc121897209 \h 18Summary and Gap in the Literature PAGEREF _Toc121897210 \h 20Chapter Three: Case Study and Discussion PAGEREF _Toc121897211 \h 22Case Studies PAGEREF _Toc121897212 \h 22The Case of Heweilai PAGEREF _Toc121897213 \h 22Henn-Na Hotel Japan PAGEREF _Toc121897214 \h 24Discussion and Recommendations for the Restaurant Owners PAGEREF _Toc121897215 \h 26Appearance of Robots PAGEREF _Toc121897216 \h 26Functionality and Cognition PAGEREF _Toc121897217 \h 27AI-Human Collaboration PAGEREF _Toc121897218 \h 29Prospects for Co-Creation PAGEREF _Toc121897219 \h 29Keeping the Customers Informed about Changes PAGEREF _Toc121897220 \h 31Using Industry Benchmarks PAGEREF _Toc121897221 \h 31Minimizing the Reliance on Human Assistance PAGEREF _Toc121897222 \h 32Implications for the United States PAGEREF _Toc121897223 \h 32Chapter Four: Conclusion PAGEREF _Toc121897224 \h 34References PAGEREF _Toc121897225 \h 35
Chapter One: Introduction
The use of robotic technology in the restaurant industry is on the rise. The use of artificial intelligence (AI) has expanded to multiple domains relevant to the restaurant industry, from cutting and chopping to serving visitors (Jang & Lee, 2021). Industry experts believe that the growing demand has set up the industry to face challenges on multiple fronts, including the labor shortage and demand for the speedy delivery (Haynes, 2020). The use of robotic technology serves both of these purposes simultaneously. Restaurant owners can rely on them as a substitute for human input, thereby enabling them to combat the labor market gaps (Rogers, 2021). At the same time, AI can boost processing speed (Haynes, 2020). Therefore, the background information encourages to consider the prospect of an uptrend of positive attitudes among restaurant owners toward artificial intelligence.
Purpose
The study is aimed to evaluate the extent to which restaurants can benefit by introducing robot servers in place of human servers. This aim is broken down into the following key objectives that lay out the map for the study:
1 To assess the impact of using robot servers in restaurants
2 To assess the challenges facing restaurant owners in introducing robotic technology in restaurants
3 To identify the optimal ways of deploying robot servers by overcoming the potential challenges
4 To produce a set of recommendations for the restaurant industry owners based on the insights gleaned from the study
Theoretical and Conceptual Framework
The research is mainly underpinned by Technology Acceptance Model (TAM), which can be used from owners' and consumers' perspectives. The TAM model sets forth the characteristics inherent or relevant to a technology that determines the level to which that technology will be accepted by the target audience (Al-Emran, 2022). Attitudes that constitute the overall impression of the technology are regarded as the triggers of behavioral responses. Key factors that contribute to the propensity of the audience to accept the technology include usability, benefit, relative performance, and social perception (Al-Emran, 2022).
Statement of Problem
Despite arguments from different spheres supporting the use of robotic technology and showing how its benefits outweigh the demerits, the research on its use in the restaurant industry is scant (Haynes, 2020). To be more specific, the studies dealing with the use and benefit of robot servers and the strategies to be used by owners to deploy this technology are scarce in the literature. This gap in the literature is the primary motivation for the study.
Besides, robotic servers are unlike other technologies used in restaurants. These servers replace human characteristics in various aspects where empathy is a crucial distinction. While robots can be much more efficient in listening and memorizing orders and ensuring fast delivery, it is hard for them to replicate the sense of connectedness associated with human-to-human interaction (Lu et al., 2021). This tradeoff between human and robot servers warrants an investigation into the usefulness of robot servers in restaurants with all the restrictions and limitations associated with robots.
Limitations
A potential limitation of the study is that it relies on three specific cases. Even though the two cases (Heweilai, a Chinese restaurant, and Henn-Na, a Japanese restaurant)chosen for the study offer a glimpse into the dynamics associated with using robots in the restaurant industry, it is hard to generalize the insights gained from such a narrow sample of studies. Besides, the research could have benefitted from the interview with industry experts who have exposure to and hands-on experience in using robotic technologies. However, this option is ruled out considering the resource and time constraints aside from the fact that the restaurants leveraging the robot servers are far between. Therefore, obtaining consent for participation from the managers of such restaurants is a substantially costly consideration and may trigger administrative complications beyond the scope of preparation for this study. Therefore, the study solely relies on the case study approach and combines it with the literature review to bridge the first-hand inquiry gap.
Delimitations
An important delimitation is the type of restaurant. The study is mainly focused on reputable chains of restaurants since small-sized restaurants are unlikely to consider the prospect of adopting robots due to their limited financial capability. Therefore, the study's findings pertain to large restaurant chains only. The research does not touch on the benefits and tactical use of automation beyond the scope of robot servers. The study is restricted to dealing with the context of replacing human servers with robots. Therefore, it does not address how automation in other areas, such as inventory control or cooking, can serve the intended audience. Similarly, the study does not consider customer tech literacy or belief system variations. It does not address to which extent a conservative or democratic can lead a consumer to accept or reject the specific technology in consideration. The reason for steering clear of this perspective is that it needs an inquiry from the socio-political lens, which is not appropriate to the management-oriented nature of the study.
Similarly, the research does not dwell too much on the moderating impact of COVID- 19 since it has to serve as a long-term guide irrespective of short-term upheavals in the market. A pandemic-centered approach requires a separate study that might deal with how before and after COVID-19, the influence of robotic technology has shifted. However, this perspective makes up for supplementary discussion and is devoted to a brief section without causing the researcher to deviate from the core issue.
Another area that falls beyond the scope of the study is the technical glitches or issues which may cause the robots to malfunction. Considering these dimensions requires a technical approach that does not correspond with this study's purpose. The study does not consider how malfunctioning can cause consumers to run away or impact the administrative budget.
At the same time, the study does not compare different types of robots and uses the term robot servers in a broader context. The robot server is the robot that replaces the human servers. The study does not delve into a nuanced discussion about how one type of robot server may differ from another in terms of functionality and personality. This type of discussion might have also diverted the discussion into a technical dimension, which is undesired.
Assumptions
The study assumes that the case studies picked for the analysis are highly representative and stand for irrespective of differences in geographic segments. For instance, it is assumed that the case study findings hold true for organizations in any country, while country-specific belief systems and political ideologies and their interaction with the use of robots are not considered.
Similarly, it is assumed that all robot servers function uniformly. The differences which might make robots from one category superior to another are not considered since they might bring complications to the research. Therefore, the research focuses on essential functions, such as attending the visitors, taking orders, and serving food.
It is also assumed that robots do not evolve to such a degree that they might replicate human intelligence or develop empathy to mimic human-to-human interaction in its purest sense. Such a scenario might shape up but is unlikely to be observed in several upcoming decades. Therefore, the robots are considered in their current form without considering the prospects of their evolution.
One of the key assumptions is that robotic technology in serving will remain a novel consideration for several years ahead. This assumption provides the rationale for curiosity as a source of customer attraction. In a world that is technologically developed to an extent in which the use of robots has already turned into a norm, curiosity is rendered out of context.
Therefore, it is assumed that the novelty and exoticness associated with the human-to-robot interaction are sustainable until the ubiquity of the use of robots rises to an extent where the current study inherently loses its rationale (due to empirical evidence being easily accessible and able to dictate the managerial choices regarding robot servers better).
Definitions of Key Terms
Artificial Intelligence (AI): The information technology tools used to automate processes and tasks in any particular arrangement.
Robot servers: The robot waiters who are supposed to serve the customers at restaurants.
Employee turnover: The rate at which employees quit a particular organization within a given period of time.
Repetitious tasks: The mundane tasks that repeat and can be performed using the same process over and over again.
Brand equity: The commercial value of a brand that is rooted in customers' perception instead of the intrinsic quality and performance of its products or services.
Chapter Two: Literature Review
Introduction
This chapter is aimed to delve into the theoretical background of AI relevant to the research area. The chapter also sets forth pieces of empirical evidence about the adoption of robot servers in restaurants. Key takeaways from existing research are helpful in developing the foundation for analysis since the findings of the study are synthesized with the cases of robot server adoption provided later. The chapter extends into the four sub-sections starting with a brief overview of the growing ubiquity and popularity of robotic technology in business in general and specifically within restaurants. It is followed by the coverage of the potential benefits of employing robot servers in place of humans. The next section lays out the obstacles to the implementation of robotic technology in restaurants, and finally, a few studies dealing with empirical evidence are summarized to leverage the current experience of employing robots in restaurants.
Growing Popularity and Ubiquity of Artificial Intelligence in Hospitality
The business environment has undergone a substantial shift over the past few decades, mainly fueled by rapid technological advancement and globalization. Both these factors lie behind the bottom of the exponential growth in the intensity of competition. With the margin for differentiation narrowing down, the market players actively seek strategies, tools, and tactics to take or sustain their lead in terms of competitive advantage (Statista, 2019). One of the most popular approaches to achieve this purpose is to automate (Statista, 2019). According to Statista, the global AI market size was recorded at $10.1 billion in 2018, with anticipation to rise up to $26 billion by 2025, following an exponential uptrend, as also shown through the figure below:
Figure SEQ Figure \* ARABIC 1
Size of the Global AI Market
(Statista, 2019)
These findings suggest that the demand for AI is on the rise, and business tends to increasingly adopt robotic tools and technologies in the pursuit of differentiation, efficiency, and enhanced market outreach. According to a recent survey report, more than 86% of CEOs believe that AI is among the mainstream technologies for their business. As many as 91% of prominent market players are directly or indirectly investing in AI. Similarly, in a report released by Forbes, it was suggested that 50% of corporations were willing to enhance their spending on AI, while 20% had already reported an increase in their budget (Watters, 2022). These findings and indications serve as evidence of the growing popularity and adoption rate of automation.
Robots that simulate humans in different roles are one of the most revolutionary products of AI. The robots are in use to carry out a wide range of mundane tasks that are repetitious and mundane in nature. The adoption of robots in restaurants is also a rising trend that has undergone a massive upward shift in demand, particularly in the past two or three years (Choi et al., 2019). It is important to note that COVID-19 has considerably added to the pace of the adoption of robots to replace human inputs in various areas, including cooking, serving, and front desk. Indeed, the pandemic pushed restaurants to proceed with massive layoffs. Hence, the workers got displaced and got engaged in other industries. Hence, when the industry navigated past the pandemic, it was short of labor to meet the recovered levels of demand. As of 2021, the labor shortfall in the industry had shot to more than 11 million employees (Lucas, 2021). Hence, the adoption of robots is heavily pushed by the pandemic-led challenges aside from other factors in general (Chuah et al., 2021). Since there is no short-term solution available for restaurants to deal with the labor shortage, they are likely to keep relying on robots, and the trends stemming from the pandemic are likely to perpetuate, and the use of robots in the restaurant industry may emerge as a new normal (Chuah et al., 2021). Hence, the ubiquity of robots in the restaurant industry tends to grow in the coming years.
Potential Benefits of Robot Servers for Restaurants
In the previous part, while considering the ubiquity of robotic technology in restaurants and that of AI in general, the focus is mainly retained on pull factors, such as the growing intensity of competition, shortage of labor, and others. The existing research also offers a resource-based view of using robots, which involves the added value that businesses draw by replacing human input with AI. Some of the most potential benefits are covered in this section.
Relieving the Burden of the Human Resource Department
Human resource has to deal with a range of mundane routine tasks to be repeated over frequent intervals, such as recruitment, training of new staff, managing staff, and succession planning. With the incorporation of robots in place of humans for repetitious tasks, restaurants can reduce the burden of the workload from the HR department (Choi et al., 2019). Firstly, as robots replace humans in certain domains, HR should be least concerned about recruitment planning. The issues relating to turnover and keeping the candidates in pipelines become irrelevant after robots take over (Bishel, 2018). Therefore, the organizations can save the time and cost otherwise spent implementation of staffing activities.
Another potential benefit of employing robots is to eliminate the need for training and development. Robots are equipped with programs upon which their functionality is based. Unlike humans, they can adapt to a new set of requirements through simple algorithmic adjustments. On the other hand, organizations have to allocate considerable resources to train employees and to help them fit the ever-changing requirements and criteria for good performance (Bishel, 2018). In this way, it is evident that robots, to a considerable extent, drive training out of the equation and allow HR managers to focus better on other key operational areas.
Crawshaw et al. (2017) argue that employing robots is in line with the contemporary trends in human resources management. The role of HR has evolved over time with a growing focus on the strategic dimension of its role in tandem with the traditional functional role. However, functional responsibilities, such as hiring, succession planning, and talent management, keep the HR from considering strategic aspects of their role to the desired extent. Therefore, if robots are incorporated and, as a result, functional responsibilities of HR are waived, the department can better complement the leadership by imparting strategic insights. In this way, it is increasingly essential for companies to have robots sharing mundane tasks and allowing HR to stretch its scope to cover the strategic needs of organizations.
Enhanced Efficiency
The enhanced efficiency as an outcome of replacing human inputs with robots extends into several dimensions. Firstly, as mentioned earlier, robots share a considerable burden, otherwise to be handled by HR. The cost incurred as a result of repeated hiring and training processes is minimized since robots eliminate or reduce the need for repeating these interventions. The reduction of these costs directly adds up to the operating margins (Byrd et al., 2021). This aspect of efficiency has received considerable support from the existing literature, and most of the recommendations in favor of integrating AI into the operational environment are based on the realization of this advantage (Berezina et al., 2019).
Secondly, the use of robots eliminates errors associated with human-led operations. Robot's programming ensures flawless compliance with given instructions unless a technical glitch interrupts (Information Reso Management Association, 2016). This factor is also associated with efficiency brought by the integration of AI in the servicescape. The errors carry a certain amount of cost while seen collectively in terms of their impact on customer buying behavior, turnaround, and disruption of workflow, resulting in delays. Robots are free from such errors to ensure smooth workflow, proper complementation, and enhanced customer satisfaction (Bishel, 201). Therefore, the integration of robots eliminates the cost associated with human errors.
Besides, robots have the potential to help organizations align with the principles of six sigma by eliminating defects from the workflow and streamlining the activities. The robots help reduce redundancies by unifying the deliverables. For example, the incorporation of robots eliminates the issue of idle employee hours and paid vacation (Bishel, 2018). In this way, their contribution per unit cost is substantially higher than human employees. This factor is crucial when considering the overall efficiency of robots.
From Marketing Perspective
The robots in the restaurant industry also have the potential to affect the guests' behavior towards the organization. The impact that robots generate on guests' or visitors' behavior is twofold: relating to the quality of service and intrinsic attraction of innovativeness (Chou et al., 2020). As robots replace human input, the first benefit received by organizations is the improvement in service delivery. The reports from various service restaurants reveal that using robot services resulted in enhanced customer satisfaction, mainly mediated by improved quality of service and better fit between provision and customer needs (Zhu, 2022). Hence, while seen from the marketing point of view, the ability of robots to adhere to the highest standards of quality is the direct source of affecting customer behavior. The research reveals that the quality-related benefits of robots result in improved overall behavior and are associated with high customer retention rates (Zhu, 2022).
Secondly, robots have an element of exoticness attached to their presence in hospitality organizations since, despite their growing usage, they are not highly ubiquitous. Only leading names in the industry are selectively adopting robots on an experimental basis (Choi et al., 2019). Therefore, organizations can use the adoption of robots as a compelling promotional instrument. For example, when Marriott announced employing robot servers, the announcement made the headlines and, thus, contributed to the brand equity and visibility of the hotel chain (Choi et al., 2019). It is one of the potential advantages since it directly relates to the competitive edge. In this context, it is worth mentioning that tech-driven innovation is one of the potential sources of differentiation in the contemporary environment of business. Therefore, the use of robotic technology in its initial phases of diffusion gives restaurants an edge as first movers (Blöcher & Alt, 2020). This edge can better be explained with reference to the innovation diffusion model, which implies that the service organizations that adopt an innovation during its early stages of innovation are in a position to take the most out of the innovation (Rogers, 2003). It is further illustrated through the chart below:
Even though robotic technology is not novel, it is in the early stages of its development. Therefore, the organization that adopts them at this early stage can be categorized as the early majority and gain the advantage of being trendsetters. Hence, the urgency associated with adoption contributes to the brand equity of restaurants, which is one of the potential liaisons between a brand and its customers (Kim & Tang, 2020).
A Futuristic Approach
Aside from other benefits, the adoption of robots has an element of prudence attached to it. The hospitality organizations adopting robots show higher levels of readiness for industry changes. Since tech-driven innovation determines the future trajectory of the industry, it is essential for organizations to make strides in this direction (Jang & Lee, 2020). Therefore, the adoption of robots is a part of the preparation for better alignment with future trends and the ability to capitalize on opportunities as they emerge (Jang & Lee, 2020).
Potential Challenges to the Adoption of Robot Servers
While the existing research has shown how the adoption of robotic technology contributes to the competitive advantage of the organization, it is not without its downside. The research shows that the adoption of robots for restaurants is barred by multiple factors when seen from the perspective of the external business environment or from a resource-based view (Fusté-Forné & Jamal, 2021). One of the key hurdles can be understood with reference to the literature relevant to change management. Certainly, the integration of robots constitutes a transformative change with far-reaching implications. If a service organization adopts robots, it is assumed that the organization may engage in layoffs since robots take over human input (Fusté-Forné & Jamal, 2021). Therefore, in general, the prospects of automating the processes are susceptible to resistance, more particularly from employees. The idea of rendering human input redundant engenders a sense of insecurity among employees, and this resistance is comparatively higher in a highly unionized workplace environment (Fusté-Forné & Jamal, 2021). This aspect is also relevant to the ethical dimensions of business. In the contemporary business environment, the emphasis on the social and environmental performance of brands is greater than ever, driven by growing public awareness of the social and environmental role of organizations and the global drive for sustainable development. Robotic technologies are often deemed to clash with the sustainability goals aimed at eradicating poverty. It is assumed that the growing ubiquity of automation will result in impoverishment since it threatens the human roles vested in manual tasks (Lok, 2020). Therefore, the innovation is also at the risk of receiving criticism from a socialistic point of view, and the brands engaged in automation may end up tarnishing their reputation. Therefore, most organizations, despite realizing the potential of automation, refrain from fully-fledged adoption for fear of the loss of brand equity (Barbierato & Zamponi, 2022).
Another potential issue associated with the adoption of robots is the perception of robots among people, as the argument associated with the technology acceptance model (TAM) and many other theories focusing on the acceptance of new technology highlight the importance of alignment between the users' personal attributes and technological innovation as an essential determinant of technology acceptance. The views about the usefulness, trustworthiness, and dependability of robots vary with personal beliefs, personalities, past experience with AI, and perceptions about the performance of robots along the lines of sustainability (Al-Emran & Shaalan, 2021). These varying perceptions make it challenging for organizations to be certain in their approach toward adopting the robot. Therefore, the adoption carries a certain amount of risk that the organizations have to accept in order to test the potential of this innovative business tactic.
The theory of TAM applies to the present context since the use ...