In my explorations of secondary sources today, I stumbled upon a discussion about the hospitality industry’s ongoing struggle with labor shortages(I hear the media talk about this all the time, I’m a bit skeptical). Matt Casella, President at Richtech Robotics, writing on Nasdaq shed some light on a solution: “Robotics and artificial intelligence (AI) offer a promising solution. By integrating these technologies, the hospitality industry can not only address its current staffing woes but also lay the foundation for a more efficient and customer-centric future” (Casella, Nasdaq). This perspective, while optimistic, only echoes the investor’s viewpoint. The projected growth in the global hospitality robots market, with a CAGR of 25.5% from 2021 to 2030, as forecasted by Allied Market Research, shows the momentum of this change (Casella, Nasdaq).
There was also an article that referenced a report by McKinsey, highlighting that “an estimated 50% of all current work activities might be automated by 2055” (Granger, Technology4Hotels). They also mentioned “Certain roles including housekeeping and maintenance seem destined for some form of automation. In these areas, robots and AI could be used to help increase operational efficiency, decrease staff costs and improve the guest experience” (Granger, Technology4Hotels). This view points towards efficiency and staffing cost prioritization, potentially at the expense of the average hospitality worker.
A Forbes article presents a slightly less grim perspective, suggesting that robots are not replacing human labor but rather enhancing it (Al-Massalkhi, Forbes). “Some restaurants are currently deploying robotic blenders, “arms” that fry and other technologies” (Al-Massalkhi, Forbes). This article suggested that automation serves as a way to alleviate menial tasks rather than eliminate jobs outright, it’s an optimistic take, but I’ll hold on to my reservations.
The narrative takes a darker turn when we look at the largely automated pilot McDonald’s that opened it’s doors late 2022, located in Texas, USA. At this restaurant, customers can expect to go through the whole process of ordering and getting food without any human interaction, ordering through a touchscreen and getting served with a conveyer belt, outright eliminating the human element in this process. “The test restaurant plays into fears that jobs will one day be taken over by robots and automation, replacing the need for human employees” (Salam, Guardian). During this period of time, there was also a popular tweet about the restaurant as seen below:
What’s even more sinister about this tweet is the fact that the video has been issued a copyright takedown.
Reflecting on these sources reveals the double-edged nature of integrating technology and AI in hospitality. It offers efficiency and cost savings but risks socio-economic disputes. The enthusiasm from investors and management contrasts sharply with the concerns of the working class. Additionally, the impact isn’t limited to manual labor. Generative AI’s breakthroughs are also unsettling white-collar sectors. Coincidentally, this was also one of my uncertainties when I was doing the box of uncertainties project.
References
Casella, M., 2021. How Robotics & AI Is Tackling Hospitality’s Labor Challenge. [online] Nasdaq. Available at: https://www.nasdaq.com/articles/how-robotics-ai-is-tackling-hospitalitys-labor-challenge [Accessed 21 February 2024].
Granger, B., no date. Will Machines Replace Humans in the Hospitality Industry? [online] Technology4Hotels. Available at: https://www.technology4hotels.com.au/article/will-machines-replace-humans-in-the-hospitality-industry [Accessed 22 February 2024].
Salam, E., 2022. McDonald’s opens its first fully automated restaurant in Texas. [online] The Guardian. Available at: https://www.theguardian.com/business/2022/dec/23/mcdonalds-automated-workers-fort-worth-texas [Accessed 22 February 2024].
Al-Massalkhi, O., 2023. Are Robots Taking Over Restaurants? [online] Forbes. Available at: https://www.forbes.com/sites/forbesbusinesscouncil/2023/03/03/are-robots-taking-over-restaurants/ [Accessed 22 February 2024].