Octane Coffee Pilots Fully Automated Drive-Thru Model – CoffeeTalk

Octane Coffee, a coffee shop in Pewaukee, Wisconsin, is focusing on automation to revolutionize the coffee industry. Founder and CEO Adrian Deasy, who has a background in manufacturing and CAD design, believes that the company was inspired by Starbucks and Dunkin’s long drive-thru lines in the Midwest. He believes that automation eliminates all human labor from the customer-facing process, reducing the need for third-party providers for tech pieces and providing all the service, support, and custom hardware.

The company’s first location opened in October 2023 in Pewaukee, Wisconsin, following a stress-testing period. The company uses sensors, digital measurements, and cameras to ensure consistent and accurate preparation of drinks. Drinks are customized on demand and made just before pickup, with a labor footprint less than half of a typical coffee drive-thru. Each location requires only about one hour of human labor per day, dedicated to cleaning and restocking.

Octane Coffee’s pricing strategy is designed to compete directly with Starbucks and Dunkin’, offering a menu 10-15% cheaper than local competitors and no tipping function in their app that saves customers another 10-20%. They use premium ingredients and support other local businesses whenever possible, making their COGS much higher than corporate coffee competitors. Once economies of scale are achieved, they can drive down prices even further.

The competitive landscape is beginning to take shape, with players like Cafe X, Crown Coffee in Singapore, and Truebird in Brooklyn also betting on robotic baristas. However, Octane’s fully automated, drive-thru-only model sets it apart from those kiosk- or café-based approaches. Deasy sees automation as the long-term solution to the industry’s labor struggles, as it is already hard to find labor for current restaurants and coffee shops. He expects wages to rise and put even more pressure on their pricing models.

The next steps include expanding across Wisconsin in 2026 and opening the model up to franchising. For Deasy, the best technology should be synonymous with magic, referencing the Arthur C. Clarke quote. The company’s customer experience is designed to focus on quality, value, and time savings over the gimmick of a robot making a drink.

Read More @ Restaurant Technology News