Back in March, a hamburger chain in California introduced a new one-armed employee named Flippy.
Flippy is no ordinary employee.
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It first takes burger orders through a digital ticketing system.
It can grill 100 burger patties in under an hour, perfectly and exactly the same way – without taking a break… ever.
Flippy can detect exactly when a burger needs to be flipped, and when it’s ready to be taken off the grill.
That’s because Flippy has something no other employee has: Advanced heat sensors and cameras that give him Superman-like X-ray vision.
You see, Flippy is a specialised industrial six-axis robotic arm. And even at a cost of US$60,000, it’s cheaper than you might think.
That’s because it doesn’t need endless hours of training and orientation.
It won’t ever need healthcare benefits.
It doesn’t complain.
It won’t quit.
Sure, its owner will have to spend US$10,000-US$12,000 a year on maintenance and software upgrades.
But by contrast, hiring someone to flip burgers in California likely costs the company about US$45,000 a year, including health benefits.
So Flippy pays for itself in just two years. And because the company can even deduct depreciation and maintenance from its income, the actual return on investment is even faster.
Mass production of Flippy isn’t far away
Flippy has been in trial since March 2017. At first, Flippy had a very limited range of motion, and it was unclear whether Flippy was better and faster than a human.
So its developer, privately-owned Miso Robotics, spent the next year fine tuning, upgrading, redesigning and basically perfecting it.
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The Flippy on the market today flips burger patties faster than any human can, can tell when the burgers are done, place them on the bun, clean the grill – and even change spatulas to avoid contamination.
The technology behind Flippy is expected to be rolled out in 50 more hamburger joints.
While that’s not huge, it’s clear that many hamburger chains will be looking at eventually adopting Flippy, or his robotic cousins.
Meanwhile, self-ordering kiosks, where you place your order on a touchscreen and pay with your plastic card or insert cash bills, have already become commonplace in McDonald’s, Wendy’s and Carl’s Jr. outlets all over the U.S.
In Hong Kong and Japan, where wages are among the highest in Asia, these kiosks are appearing all over.
No longer a question of if – but when
Robots are already an integral (and widely accepted) part of industrial manufacturing.
They make cars with precision and in volume. The computers, smartphones and microchips inside them are built largely with precision-guided robots.
The next decade will see an explosion in the way humans interact with robots in day-to-day activities.
Amazon is planning to launch “postmen” robots that will deliver mail and packages right to your doorstep 24 hours a day.
In warehouses all across China, hundreds of robots powered by computers the size of iPads are connected to a super-network. They process orders from e-commerce sites quickly and accurately.
Japan, faced with a chronic labor shortage and rapidly ageing population, is developing robot caregivers to help the elderly walk in the streets or lift them from their beds.
They’re also now testing robot construction workers that lift, measure, weld and navigate a construction site, allowing companies to reduce their manpower needs by as much as 50 percent.
According to market research firm Mordor Intelligence, the global robotics market is expected to grow at a compound annual rate of 24.5 percent from 2018 to 2023.
This isn’t a fad. It’s a mega-trend, borne out of necessity, that’s built up enormous momentum. And in coming years it will reshape forever how we eat, drive, work, clean and learn.
Just as the Internet changed and radically improved the speed and efficiency with which we communicate with each other, giving rise to today’s tech giants like Facebook, Amazon, Google, Netflix, and many more… the proliferation and advancement of robotic technology throughout industries will naturally give rise to a new crop of technology giants.
That’s why I recommend keeping this industry on your radar.
Safe investing,
Brian Tycangco
Editor, Stansberry Churchouse Research
P.S. The best way to profit from the robotics revolution is to invest in a basket of companies that are leading the world into the era or robotics. In a brand-new research report, we share four of the best names in this space today… with the potential to soar hundreds of percent in the following years. You can learn the names of these companies – and their tickers – with a subscription to The Churchouse Letter. Go here to learn more.
