LG bets on Bear Robotics to boost profitable growth in autonomous restaurant waiter market |

LG Electronics has strengthened its robotics division by acquiring a 51% stake Bear Roboticsa Silicon Valley-based startup known for its food service robot Servi. This acquisition builds on LG’s initial strategic investment of $60 million in March 2024 and firmly establishes Bear Robotics as a subsidiary of LG.

While Bear Robotics has a notable presence in the restaurant industry, LG’s robotics ambitions extend to home and industrial applications, reflecting a broader vision for the role of robotics in various sectors. However, this acquisition strategically positions LG to compete more aggressively in the rapidly expanding market for restaurant automation, a sector that is experiencing significant growth due to evolving industry dynamics and increased demand for efficiency and contactless solutions.

Founded in 2017, Bear Robotics has carved a niche for itself by developing AI-powered domestic service robots designed specifically for the hospitality and foodservice sectors. The company’s flagship product, Servi, is an autonomous robotic waiter capable of delivering food to tables, busing and efficiently transporting multiple trays.

Servi’s modular design offers different models adapted to different restaurant needs and layouts, from the compact Servi Mini to the larger, high-capacity Servi+. This versatility allows Bear Robotics to cater to a diverse range of restaurant environments. Prior to the acquisition, Bear Robotics had secured over $173 million in multiple rounds of funding, a testament to investor confidence in the company’s technology and its growth potential within the emerging restaurant robotics market.

LG’s acquisition of Bear Robotics offers several key advantages. Bear Robotics’ expertise in AI-powered robotics software, including sophisticated algorithms for navigation, obstacle avoidance and multi-robot coordination, is a valuable asset. Its proprietary remote fleet management system allows restaurant operators to monitor and control multiple robots simultaneously, optimizing deployment and workflow. This software expertise complements LG’s existing robotics technology and strengthens its ability to develop advanced, user-friendly solutions for the restaurant industry.

Bear Robotics’ established presence in key markets such as the United States, South Korea and Japan provides LG with immediate access to a wider customer base and accelerates its entry into these strategically important regions. Finally, retaining Bear Robotics’ existing leadership team, including CEO John Ha, ensures continuity and leverages its deep understanding of the restaurant technology market. The integration of the two teams is expected to generate synergy and accelerate the development of innovative solutions.

The restaurant industry is experiencing rapid growth in the adoption of robotics and automation solutions, driven by ongoing labor shortages, escalating labor costs, increasing demand for contactless service, and the potential for increased efficiency and productivity. Robots offer a solution to staffing challenges by automating tasks and reducing reliance on human labor, while also addressing rising labor costs by streamlining processes.

Demand for contactless service, accelerated by the pandemic, continues to grow, with robotic servers and self-service kiosks becoming increasingly popular. Robots also provide improved efficiency and productivity by performing repetitive tasks repeatedly and quickly, often exceeding human capabilities in terms of speed and accuracy. This leads to faster order fulfillment, reduced errors and increased overall productivity.

These factors have created a rapidly growing market for robotics companies targeting the restaurant industry. One last one research report by Spherical Insights & Consulting projects significant growth in the global intelligent robot waiter market, reaching $6.6 billion by 2033. This potential is attracting significant investment and driving innovation in restaurant robotics.

The market for restaurant robots is becoming increasingly competitive, with established players and emerging startups vying for market share. Key competitors include KEENON Robotics, Pudu Robotics and RichTech Robots, each offering a range of solutions for restaurants. Numerous startups are also developing specialized robotic solutions for specific restaurant tasks, creating a fragmented but dynamic market. This landscape presents both challenges and opportunities for LG. While the acquisition of Bear Robotics provides a strong foundation, LG will need to continue to innovate and differentiate its offerings to stand out.