Beware Legal Pitfalls With Robot Servers

As on-premise operators look to streamline the customer service experience and minimize costs, some are considering or rolling out automated ordering systems — with or without artificial intelligence. The technology could range from a human-sized robot greeting customers like a bartender would or a phone application through which guests place their orders and await a robot that comes to the table and dispenses the requested cocktail.

While robotic ordering technology keeps evolving, one thing is clear: These systems often do not fall squarely within the boundaries of the legal framework in which businesses that serve alcohol on-premise operate.

Here are a few legal implications to keep in mind when considering or implementing robotic ordering.

Consumer Age Verification

With few exceptions, it is illegal for an on-premise retailer to sell or serve alcohol beverages to a minor. Many states have laws or regulations requiring on-premise operators (through their personnel) to review a consumer’s identification to verify they are of legal drinking age before selling or serving alcohol beverages to them. In some states that don’t have these laws or regulations, a bar or restaurant can mitigate its penalties for an illegal sale to a minor by first checking IDs to ensure guests are of age.

Robotic ordering systems currently cannot accurately verify a consumer’s age. But there has been discussion around integrating facial recognition technology into robotic ordering systems to match consumer age and identification.

If implementing this technology, on-premise retailers will have to confirm that it is an acceptable form of consumer age verification under the alcohol beverage laws and enforcement policies in the states in which they are using robotic ordering. If not, the robot may need to be supervised by a human who verifies consumer age.

Server Training and Licensure

Many states have laws or regulations that require on-premise employees to undergo specific alcohol beverage server training, and/or hold an alcohol beverage server license or card. Among other topics, the courses teach bartenders when and how to say no to intoxicated customers.

As with consumer age verification requirements, there has been discussion around how robotic ordering systems can successfully complete the training courses required under applicable alcohol beverage laws to secure alcohol beverage server licenses.

Another topic involves how a robotic ordering system can detect consumer intoxication. If you can’t ensure that an automated ordering system complies with the requirements in your state, the robotic ordering system may need to be supervised by a human who has complied with the training and licensure requirements.

Liability allocation considerations

In most instances, on-premise operators fall outside the business of designing and manufacturing robotic ordering systems. They will likely lease or purchase these robotic ordering systems from a third-party designer and manufacturer.

The risk for liability arising from the systems’ actions may be allocated between these two parties contractually. But alcohol beverage agencies generally seek recourse for violations of alcohol beverage laws from the party that holds the alcohol beverage license for the licensed premises where the violation occurred.

Because these robotic ordering systems are typically located on the operator’s licensed premises, complex issues can arise regarding the party that will be held responsible for the system’s failure to comply with applicable alcohol beverage laws.

A balancing act

Despite the risks, the benefits of robotic ordering systems are clear, namely minimizing the costs associated with hiring and training new personnel. And as the technology gets better at ensuring that the alcohol beverages poured for consumers meet exact measurements, it can help reduce the risk of overserving consumers on the licensed premises, as well as the costs associated with a bartender’s overserving and resulting undercharging.

Technological innovation in the food and beverage industry, and the resulting benefits and downsides, will continue to evolve. On-premise establishments must strike a balance between operational efficiency and customer experience.

You also need to understand the requirements under your state’s alcohol beverage laws. Consulting with alcohol beverage regulatory counsel in advance to ensure can help mitigate the risks with these emerging technologies.

Alexis Mason is a senior associate with the nationwide alcohol beverage department of Miami-based law firm GrayRobinson.

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