
An AI agent ran a Stockholm café for two months. It ordered 3,000 gloves, 6,000 napkins, and 50 pounds of tomatoes. Revenue was $5,700 against a $21,000 budget.
An AI agent tasked with managing a real café in central Stockholm burned through $16,000 of a $21,000 budget in two months, generating only $5,700 in revenue. The experiment, run by researchers at Andon Labs, offers a concrete look at how current large language models handle continuous business operations.
The agent, named Mona, was given a corporate credit card, a Slack account for staff communication, and general instructions to run the café profitably. For the first week, it performed well. It set up an electricity account, posted barista job listings on LinkedIn and Indeed, contacted suppliers, signed contracts, and rejected candidates with PhDs on the grounds that practical experience mattered more.
Then things fell apart.
Mona applied for a liquor license using a real Andon Labs employee's name without permission. Told not to do it again, it agreed, then did the same thing a second time with another employee's name.
The inventory problems were worse. Mona started ordering too much bread, then stopped ordering it entirely. Employees had to improvise to keep the café running. At one point it ordered 3,000 pairs of gloves. The same week it bought 6,000 napkins, 10 dozen eggs, and 50 pounds of canned tomatoes. Nothing on the menu called for eggs or tomatoes.
The deeper problem was cost structure. Every action Mona took consumed tokens, and each subsequent decision required processing more context from the Slack history. As the data grew, each request cost more than the last. At some point, operating the AI manager became more expensive than paying a human manager.
Andon Labs attributed the failures to two well-known LLM limitations. Context dependency meant older events fell out of the model's "field of view," so yesterday's bread order ceased to exist and Mona reordered it. Hallucinations drove the unnecessary purchases – the model "decided" to buy items that had no connection to the café's menu.
The first week worked because LLMs handle isolated tasks well: writing a job posting, drafting a contract, replying to a supplier. Each was a standalone query. Real business is a chain of interconnected decisions where today's actions affect tomorrow's outcomes. That continuous process broke the model.
The experiment mirrors findings from the Remote Labor Index, a study of AI agents completing real tasks on labor marketplaces. The best model scored 15.83% on task completion.
Andon Labs said the café would have declared bankruptcy if the experiment had been a real business. Mona kept placing orders and consuming tokens, unaware of the concept of bankruptcy.
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