Humans Adapt When Challenged... ie Shake Shack
Data this week is the time measured in months by which Shake Shack plans to roll out self-service kiosks in almost ALL of its locations. Talk about problem-solving.
Technology is a deflationary force, and this is further evidence of that notion.
When faced with issues, companies constantly turn to solutions. During COVID, companies turned on websites, ordering capabilities, and digital payment solutions.
Over the last 12 months, inflation has impacted restaurant-level margins, prompting companies to think about the current environment while also positioning for the future—the type of mentality you want in a business.
Here are other companies doing the same:
• Mcdonald's plans to roll out kiosks across its fleet of over 15k locations.
• KFC rolling out kiosks internationally
• White Castle puts 100 robot burger flippers across its fleet.
• Panera is putting robots across chains
• Restaurant Brands International mentioned kiosk success.
• Chipotle testing robot for making their chips.
Potential Investment Implications
The direct investment implications are two-fold.
First, the speed at which companies adapt to situations should provide a sigh of relief as the world works through inflation. Think about how fast the world adapted to COVID. As we see more demand for robotics and automation, the price for these solutions naturally decline, increasing the return on investment. It is clear we are at that moment where companies see a return on investment made into these kiosks and robots.
The second takeaway should be around one major trend we have been talking about here at Avory, the power and future will incorporate a heavy dose of automation.
Disclaimer: See the disclaimer page. Not a recommendation to purchase or sell any securities mentioned.