Inside Miso Robotics’ lab in downtown Pasadena, a collection of robots that once seemed like science fiction come to life lines the workbenches. Among them are Sippy, Chippy, and Drippy—robots designed to handle various kitchen tasks. But it’s Flippy, the latest innovation, that steals the spotlight. This robotic arm, designed to fry French fries and chicken nuggets at lightning speed, could change the future of fast food.

With the restaurant industry facing rising labor costs, including increases in minimum wage, Miso Robotics is betting big on automation. Fast-food chains, burdened by higher wages and employee turnover, are increasingly looking for ways to cut costs, streamline operations, and improve consistency. Flippy, which can process more than 100 baskets of fries per hour, is at the heart of this push. Compared to the roughly 70 baskets an average employee can manage in the same time, Flippy is not just faster—it’s also safer, sparing workers from the dangers of hot oil and grease slips.

Miso Robotics, founded in 2016, has big plans to transform the kitchen. The company has already tested earlier versions of Flippy in restaurants like White Castle, CaliBurger, and Jack in the Box. The goal: convince fast-food chains to integrate Flippy into their kitchens as a way to automate mundane tasks, freeing up human employees for more customer-focused roles. According to Miso’s CEO Rich Hull, “You’re never going to get rid of humans in restaurants, nor would you want to. What you’re trying to do is automate the tasks that humans don’t enjoy doing.”

Although robots have been experimented with in kitchens for years, the idea of widespread automation in fast food remains in its infancy. Companies like White Castle, Sweetgreen, and Chipotle are among those exploring ways to integrate automation into food prep, but the return on investment remains uncertain. John Gordon, a restaurant industry analyst, describes the situation as “the very, very early stage.” He points out that while there is a potential for robots to improve operations, the technology has not yet proven to be a game-changer across the entire industry.

Still, some companies are already seeing promising results. Sweetgreen, for example, has been testing a system called the “Infinite Kitchen,” which uses machines to mix and dispense salad ingredients. In pilot locations like Huntington Beach, the technology has led to improvements in order accuracy, a reduction in employee turnover, and a 10% increase in average sales.

For Miso Robotics, the key to success lies in convincing restaurants to embrace automation, and its frying technology is at the forefront. Hull claims that automating the fry station alone represents a potential $3.5 billion revenue opportunity for Miso, as it seeks to carve out a significant foothold in a market that is still largely underdeveloped.

However, Miso Robotics’ path forward is uncertain. As of June 2024, the company was facing financial difficulties, with an accumulated deficit of $122.8 million and only about $4 million in cash reserves. Its negative operating cash flow has raised concerns about its ability to survive in the competitive tech startup world. Despite these challenges, Miso has raised $126.5 million from investors and continues to seek additional funding.

Hull, a Hollywood producer-turned-entrepreneur, took the reins as CEO in 2023, bringing a fresh perspective to the company. He was brought in to lead Miso through its difficult transition, and he believes in the company’s potential. “Innovation is not easy. It’s really hard. Now we have a seven-year head start on everybody else, but it’s messy,” he said. Miso recently closed a $20 million financing round and plans to ramp up production in the coming year, with hopes of becoming profitable by the end of 2026.

Not everyone is convinced that automation will improve conditions for workers. Brian Justie, a senior research analyst at the UCLA Labor Center, visited a restaurant using Flippy over the summer and questioned whether automation actually benefits employees. “Whether or not it’s faster or cheaper than a traditional restaurant, it was clear that there were fewer people doing pretty much the same amount of work, or more work, with a limited menu,” Justie said.

Hull, however, argues that Flippy’s design has been optimized to improve worker satisfaction. The robot is now smaller, allowing it to fit more easily into tight kitchen spaces, and it incorporates artificial intelligence to reduce food waste and improve reliability. If there is a problem, Flippy can even alert a customer service representative before it breaks down. “We’re focusing on frying right now, but the goal is to eventually tackle all aspects of food prep,” Hull explained.

Despite its challenges, Miso has made notable progress. It’s not just fast-food chains like White Castle and Jack in the Box that are testing Flippy’s capabilities; larger restaurant groups, including Panera and Chipotle, have also partnered with Miso Robotics to explore how automation can improve their operations. These chains may not have publicly disclosed whether they’ve seen significant cost savings, but they point to other benefits like more efficient kitchens and increased employee satisfaction.

For example, White Castle, which first rolled out Flippy in select locations, has found that automating the fry station allows employees to focus on higher-value tasks, like improving order accuracy and customer service. Jamie Richardson, the chain’s vice president of marketing, says that taking the “pain points” out of the kitchen ultimately benefits everyone—from workers to customers.

Chipotle also experimented with a tortilla chip-making robot in Orange County, California, and although the pilot has ended, the company applied lessons learned from the test to improve other parts of its operations.

With an industry still divided on the role of robots in the kitchen, Miso Robotics is betting on the widespread adoption of automation in fast food. Flippy’s ability to fry faster, more safely, and with greater consistency than human workers is a significant selling point, but the company must overcome its financial struggles and continue to prove that automation in the kitchen can be a win-win for both businesses and workers.

As Miso pushes forward, it will likely face challenges—both technological and financial—but its ability to navigate these hurdles will determine whether it becomes a true game-changer in the fast-food industry or another casualty in the tech world’s race to disrupt traditional business models. Only time will tell whether robots like Flippy will revolutionize the kitchen, or if they will remain just a curious experiment in the world of fast food.

By Impact Lab