Kari-Out Delivers 25% Production Surge Through Robotic Palletizing – No Extra Labor Required

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A Long-Standing Bottleneck in High-Volume Packaging (Image Credits: Pexels)

Totowa, New Jersey — Production lines at Kari-Out’s facility here faced a persistent challenge in palletizing operations that slowed overall throughput. The food packaging manufacturer, with nearly a million square feet of space across five North American sites, turned to automation for a swift resolution. Results appeared after just one shift, yielding a 25% output increase without additional workers or capital outlay.[1][2]

A Long-Standing Bottleneck in High-Volume Packaging

Eighteen employees managed palletizing at the Totowa plant, handling hundreds of boxes per shift filled with sauce packets, towelettes, and tableware like wooden chopsticks. The role demanded constant lifting, bending, and coordination, which proved physically taxing and led to exhaustion. High turnover plagued the operation, reaching 130% last year in a plant of 170 workers; the company cycled through 225 people.[1]

Upstream processes outpaced this end-of-line step, creating backups and forcing production halts. Errors crept in, resulting in shipping mistakes, customer complaints, and occasional fines. Temporary labor dependency added variability and costs, straining resources in an industry where consistency drives competitiveness. Kari-Out recognized that internal automation development would divert engineering talent from core product innovation.[1]

Robotics-as-a-Service Transforms Operations Overnight

The company partnered with Formic to deploy palletizing robots through a fully managed service model. This approach required zero capital expenditure and no internal maintenance team. Deployment occurred last November, with initial minor issues resolved rapidly by Formic’s 24/7 support.[1]

Peter Santo Rodriguez, Director of Manufacturing with 13 years at Kari-Out, highlighted the appeal. “When you hear that you can deploy automation without capital and without internal maintenance, that doesn’t sound real. But it’s real.”[1] Predictable outcome-based pricing shifted focus from equipment ownership to production gains. Workers transitioned to higher-value tasks, eliminating the grueling manual labor.

Immediate Gains Reshape Plant Performance

Output climbed 25% right after implementation, with systems achieving 100% uptime. Injury risks vanished, alongside workers’ compensation claims. Shipping errors dropped to zero, curbing fines and complaints.[1]

Turnover in the palletizing area reached zero, stabilizing the workforce. Reliance on temporary staff diminished significantly. These changes rippled through operations, enhancing speed and reliability across the facility.

Expansion Plans Signal Broader Commitment

Kari-Out ordered six additional identical robots for rollout this year, aiming to scale without proportional staff growth. Employees now prioritize process improvements and new product development. Rodriguez noted the downstream benefits: “This created a downstream effect on so many operations and teams.”[1]

The initiative underscores a shift in manufacturing, where service-based automation lowers barriers for mid-sized firms. Kari-Out, founded in 1964 and serving the foodservice sector with sustainable packaging options, positions itself for sustained growth amid rising demand for takeout solutions.[2]

Kari-Out’s experience proves that targeted automation can redefine manufacturing efficiency in the food packaging sector. Companies facing similar constraints now have a blueprint for progress without traditional hurdles. What do you think about this approach to scaling production? Tell us in the comments.