Business News

CCTV Script 10/05/18

— This is the script of CNBC's news report for China's CCTV on May 10, Thursday.

Italian drink six billion cups of espresso every year, and their high requirements to taste and concentration have made them distain the fast-food coffee, like Starbucks. But customers also have to queue at Starbucks even they don't care if Starbucks is fast-food coffee. So in the near future, Café X, this robotics coffee maker, may become popular.

Ammunition, a famous design company in US, launched this intellectualized coffee making machine worth $25 thousands. Customers just place order on app, Café X can make coffee in 1 minute, which is a quite simple operation. Café X also offers a multiple of beverage options.

Repetition work such as making coffee is a low technology job, and some occupations, like barista, will be replaced by AI one day. So Café X just follows the trend of tech development. And robotics coffee making process is very competitive. Cafe X launched last year at San Francisco, The bot typically fulfills 300 to 400 orders a day. Prices are kept low, since there's little overhead. A basic cup of Americano coffee is $3. The total funding stands at $7 million

Cafe X is focused on scaling its markets and will be launching additional locations. Starbucks cult followers disagree with this business model. They think, this robotics coffee maker is still a coffee machine and don't as attractive as baristas. Especially compared to traditional café, "Fast" is the only one topic for Café X, which make it loss the atmosphere and features of Café. Even though, Café X's designer said, Café X is not a cold machine; the robot gestures are crafted to evoke a true coffee bar experience.

At present, the supply chain become a sticking point for it to scale its manufacturing capabilities and if Café x can move beyond the novelty stage to become a part of customer's everyday lives is unknown. But Café X would be a strong competitor to Starbucks once it's popular in the market. Starbucks — the largest coffeehouse restaurant in the world has no official plan in the works to add robots. The relaxed, friendly atmosphere, as well as premium coffee is the key for Starbucks to win the market. But we can foresee that robotics coffee maker will definitely compete with the traditional coffeehouse.