We dive into how technology is shaping the future of fast food by helping the likes of Domino’s and Chick-fil-A provide an affordable and sustainable delivery service.
This is part of our Future of Fast Food report. Download the full report.
In 2030, autonomous vehicles will be routinely delivering food on behalf of restaurants — opening up opportunities for these companies to offer new customer experiences (like 24/7 delivery) and lowering customer costs by removing outlays like the expectation to tip.
This is one of the key technologies that will shape the future of the fast food experience. Below, we dive into this technology: how it works, who has an edge, and how it’s changing the future of fast food.
WHAT IS THE AUTONOMOUS DELIVERY?
Autonomous delivery uses ground-based robots or aerial drones to automate the delivery process, often incorporating features such as temperature control and tracking for perishable goods. Some autonomous logistics vehicles are designed to travel on roads alongside passenger cars, while others are designed for use on sidewalks.
FIRST MOVERS
Early players in autonomous ground vehicles include unicorn Nuro, who has received funding from Chipotle and has partnered with Domino’s. In Q3’22, Uber Eats announced a 10-year partnership with Nuro to make deliveries in Texas with plans to expand to California.
SOURCE: DOMINO’S
Refraction AI, another player in the space, partnered with Chick-fil-A in 2022 to begin testing autonomous delivery. Both Nuro and Refraction AI use self-contained vehicles smaller than the average car to make contactless deliveries.
In drone deliveries, Flytrex has seen significant activity from restaurants. In 2022, the company partnered with Brinker International, the holding company of Chili’s Grill & Bar and Maggiano’s, as well as sandwich chain Jersey Mike’s. These partnerships point to the broader corporate interest in drone delivery.
IMPLICATIONS
- Autonomous delivery still faces a number of barriers on the path to commercialization, most notably a complex regulatory environment that has made it challenging to launch and scale services. However, restaurants should monitor early movers that have been announcing regional tests in the past year.
- Drone delivery offers a number of advantages over ground-based alternatives. For example, drones can carry out deliveries more quickly and affordably (and have been shown to reduce energy usage by about 90%), without adding to road traffic or burning fossil fuels. This can also mean that orders will be fresher they arrive.
- Restaurants should begin investing in their own fleet or partner with third-party autonomous vehicle providers to help reduce delivery fees, reduce reliance on gig workers, and have more control over the branded delivery experience.
- As autonomous delivery grows, restaurants should evaluate how restaurant layout and location will need to adapt. For instance, consider where autonomous vehicles will be stored when not in use and where staff will load the vehicle with orders. Also strategize how different geographies (such as dense, urban areas) might be more suited to smaller ghost kitchens with drones versus full sit-down restaurants with wheeled vehicles.
Read more in this report about how tech will shape the future of fast food, including:
- The metaverse, which will become an extension of the brand experience
- AI tongues and social listening to help brands quickly develop and test new menu items to meet changing consumer demands
- Conversational AI and AI recommendation engines will power online and in-store orders, allowing restaurants to upsell orders through personalized suggestions and prioritize labor for other customer service operations
- Robotic food preparation will automate cooking to increase profitability and reduce food waste
- NFT loyalty programs will create unique experiences and boost customer loyalty