Kernel Launches Delivery Service, Overhauls Restaurant
Plus new Caper Cart markets and updates to ServeBot
Kernel, the new robotically-enhanced fast casual restaurant from Chipotle creator Steve Ells, isn’t slowing down on its quest to reinvent the office worker-friendly lunch. Over the past week, the company’s announced that it’s veggie-forward meals are now available for Grubhub delivery, its sole location will briefly close for a remodel, and it’s got a new eggplant parm sandwich on the menu. We chatted with Kernel President Stephen Goldstein to get the inside story on how the closely watched company is evolving its business.
Ottomate News: How has reception been for Kernel so far? Any important lessons learned?
Stephen Goldstein: We have built a large following of highly engaged, loyal customers who love what we are doing at Kernel. The mix of hospitality and technology has resonated well with a core group and, in talking to all of our customers and reviewing our survey results, it became clear that expanding our menu offering and leaning in a bit more into customer-facing hospitality were two opportunities for the brand.
Was delivery always part of the plan? What drove the decision to launch now?
Delivery was always part of the plan as we know that customers value both convenience and availability, and that means being able to order Kernel when customers are at home downtown or in the office across the street
Why launch on Grubhub? Do you plan to make Kernel available on other delivery platforms?
Grubhub was very excited about partnering with us and has been a great promoter of the brand, not only on their platform but on Instagram and other outlets. We plan to make Kernel available in all channels that make sense for our business and our customers while ensuring that we protect our unique in-restaurant experience.
How has the Kernel menu been optimized for delivery?
The Kernel menu was designed with convenience in mind given our sturdy packaging and unique features like our custom vented lid for our Crispy Potatoes. More so than the menu items, our overall operating system is optimized for rapid fulfillment, meaning that our food is ready quickly for delivery drivers to collect and deliver our food in a short period of time. The result is fresh, hot food delivered on-time and consistently.
Given Kernel's use of automation, can we look forward to seeing Kernel delivered by robots?
We are always looking for ways to use automation to improve the employee and customer experience, but delivery robots are not on the roadmap anytime soon. However, we do want to be an innovation partner with the DSPs, so, if they would like to test new delivery technologies, then we are always excited to learn and work together with them as these novel technologies develop.
Was Kernel's just announced restaurant interior refresh timed to coincide with the new delivery option?
The two were not linked directly but were driven by the same desire to expand upon and improve our customer value proposition and experience, and both delivery and the new interior will do just that.
What can guests look forward to in the new dining space?
We will look and feel a bit more like a restaurant, meaning warmer colors and materials, offer seating, and a few more updates that are sure to excite our customers. You’ll have to come check it out for yourself to see all of the exciting improvements and taste favorite dishes and all of the new additions to the menu that Chef Andrew and team have been working on over the past few weeks and months.
Check out Ottomate’s previous coverage of Kernel here.
PARTNER | Locale Reinvents Food Delivery
Microwave meals have long promised huge time savings but have always been a let down when it comes to quality. Locale is rethinking this and instead of making food in a factory, partners with California's top restaurants to create microwavable versions of their dishes. Meals are produced in restaurants, then packaged in special, airtight packaging so they stay fresh for a full week in a fridge. All meals are $11. They've attracted a lot of buzz, raising $14M from Andreessen Horowitz and serving thousands of busy Bay Area professionals. Turns out their CEO is a fan of this newsletter and agreed to give our subscribers a week of free lunch to try it out.
Go to shoplocale.com and use code: OTTOMATEXLOCALE50 for $50 off.
Industry Updates
Caper Carts Head to Price Chopper, McKeever’s, ShopRite
Smart shopping cart system Caper Carts looks to be on a roll (no wobbly wheel here…) as San Francisco-based Instacart just announced it’s bringing the sensor and screen-ladened carts to Price Chopper and McKeever’s Market & Eatery stores in Missouri. Caper Carts are also headed to four more markets in the Northeast, as Wakefern-owned ShopRite expands on its existing partnership.
Chipotle Suffers from Standardization Issues
One oft-cited reason to implement automation in restaurants is that it helps ensure that each meal is alike, with a machine never skimping on inputs no matter how many customers order the same item day in and day out. New research from Wells Fargo Securities proves that issue may be even bigger than initially suspected, as visits to eight Chipotles, adding up to 75 supposedly-identical burrito bowl orders, found that the heaviest orders weighed 87% more than the lightest ones. That sure explains why Chipotle is pumping money into robotic solutions like the Hyphen automated makeline and Vebu’s Autocado.
LG CLOi ServeBot Heads to the Hospital
Fear not, LG’s CLOi ServeBot isn’t sick… in fact it’s doing quite well. The tray-serving robot, popular with restaurants looking to augment bussers and waiters, has a new variant meant for hospitals and healthcare settings. The ServeBot LDLIM31 can hold up to 32 12-oz coffee cups, thanks to its expanded four-door capacity, and ambles along at 2.6 miles per hour. LG also recently announced a “robotics as a service” business model, whereby businesses can rent the machines, inclusive of maintenance and upgrades, instead of having to make a one-time purchase.
In Other News
Drone delivery hub fundraiser Arrive AI sounds optimistic despite its Nasdaq merging partner getting delisted. MIT CSAIL creates soft robot to pick and pack groceries. Uber Freight partners with autonomous trucking player Aurora Innovation. New Holland and Bluewhite partner to retrofit tractors with AV tech. Geek+ implements first tote-to-person warehouse automation build-out for Italian pharma chain. Robotics funding on track to rebound from 2023 lows. Behind the scenes at a Waymo depot. Publix debuts virtual care services. New LA Clippers stadium may be first in nation to feature only checkout-free concession stands. Curbivore happy hour returns to Culver City on 7/11.
Editor’s Note
Since launch, we’ve gone by the names “OttOmate News” and “OttOmate,” with that second capitalized O meant to make our name resemble a smiling robot. (Squint and maybe you’ll see it.) While our logo will remain the same, going forward the proper way to render our name in plain text will be “Ottomate News” or just “Ottomate.” Thank you for your continued interest in the automation industry.