Robot tech lures new clients, staff, day-drinkers to Ratio Inc
Robotics and automation startup ROSS Digital has leased out all its available robot arms this year
Singapore
AUTOMATION is looking more attractive to food and beverage (F&B) operators these days, as the border closures implemented to stem the pandemic's spread worsen the manpower crunch that has long been an issue for the sector.
Robotics and automation startup ROSS Digital has leased out all its available robot arms this year, with the 16 units being deployed to clients located across Singapore including in Changi Airport, Bukit Timah and Balestier, such as Kaffe & Toast and Singapura Club.
Its leasing business is booming and sales at its first cafe and lounge outlet under the Ratio Inc brand have also been trending upwards since opening in November 2020.
Despite a tough period during the recent Phase 2 (Heightened Alert) period, the outlet has been "definitely on the profitable side", with Ratio planning to open six more outlets in the next six months, said Gavin Pathross, chief executive at both ROSS Digital and Ratio.
Ratio's approach has never been to replace staff entirely with automation, which Mr Pathross said would make its stores no better than vending machines, but rather for humans and robots to work in concert.
For example, the robot can mix a cocktail, but it takes a human to garnish it and serve it for a good customer experience.
Still, the cost savings from a robot that can do the work of three bartenders or baristas is an undeniable advantage and a major factor in the decision to expand rapidly during this time.
"If I were to run this as a traditional cafe without the labour savings, we may not have seen profitability," Mr Pathross said. "Being able to save on the cost of labour gives you the ability to be potentially not loss-making, because the variance is so small. Even with a gross profit of 25 per cent, the net profit is very little."
An added bonus is that the use of robots to handle repetitive tasks makes the company more attractive to customer service-oriented candidates like cabin crew.
Despite the lack of work in the airline industry and the need for manpower in the F&B sector, many have shied away from such roles, but Ratio has seen an uptick of cabin crew keen to join its ranks.
"They can do what they do best, which is engaging with customers," said Mr Pathross. "There is a fair amount of service still, and in fact the human interaction comes into focus. In our reviews online, people talk about the staff instead of the robot."
Once employed in these service roles, employees get the chance to upskill themselves through learning how to operate the robot and maintain it after each day's work.
ROSS Digital has been receiving more requests for technology to automate food processes, including requests from government agencies trying to help the F&B sector.
Yet, while automation is a useful tool for tackling manpower issues, Mr Pathross warns against treating it as a "holy grail" and neglecting other areas.
He highlights food delivery as one area that will likely undergo significant change over the next decade, with deliveries carried out by land drones instead of riders, for example.
The obstacles to accepting digital payments, such as high transaction fees, will also need to be relooked in order to increase adoption.
F&B firms should also keep up with changes in consumer behaviour, which could result even from a company's embrace of automation.
Ratio's cafe and lounge at The Centrepoint has seen small groups drinking cocktails as early as 11am, a phenomenon Mr Pathross had not expected or intended to cause.
"People are having cocktails in the middle of the day, which previously wasn't possible maybe due to the fact that nobody would hire a bartender at noon," he said.
"These are changes in consumer behaviour, caused by something that was not otherwise financially prudent to do, but now you can because you are able to double up the skill set."
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