Starbucks Corp. SBUX may be synonymous with coffee chains, but its lock on the market could be poised for disruption thanks to Artly, and its robotic baristas.
Hailing out of Seattle, Artly is leveraging artificial intelligence technology to develop robots that can brew high-quality drinks without the need for human baristas. Customers can get a great cup of java without having to wait in a long line at Starbucks.
A New Breed of Baristas
Artly isn’t your run-of-the-mill automated coffee machine maker, either. Its patented AI technology is used to create robots that mimic the actions of human expert baristas. The Artly coffee robots are taught to use the same high-end craft coffee equipment and tools used at specialty coffee shops around the country. The result: robot baristas that can replicate even the most complex recipes with the same precision as a human.
The quality doesn’t end there. Artly’s in-house smart roasting machines make small batches, which preserve the taste and quality of the coffee beans.
At last check, there are 19 Artly robots deployed in nine coffee shops in cities in California and Oregon. Artly reports that its robots have served over half a million cups of specialty coffee since its launch.
Brewing Success
Revenue has increased to $1.83 million in 2023 from $910,000 in 2022. The Artly coffee shop in the San Francisco Premium Outlet generated $40,000 per month in 2022 and a 40% EBITDA margin due to its low labor costs and customer satisfaction. All nine Artly coffee shops have a positive EBITDA margin.
Artly is also focused on the Japanese market, which is a big consumer of coffee.
Coffee Market Dynamics
By the end of 2028, the global coffee market is projected to hit $497.89 billion, growing at a CAGR of 4.52% from 2021 through 2028.
Artly hopes to address the pain points in the coffee market, enabling more shops to brew quality coffee at an affordable price.
Artly and its AI-powered robotic baristas are proving Starbucks doesn’t have a lock on the market, especially when it comes to quality.