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The Spoon

Daily news and analysis about the food tech revolution

Jennifer Marston

WSJ: Restaurant Tech Company Toast Planning an IPO

Restaurant tech company Toast is planning an initial public offering, sources familiar with the matter told the Wall Street Journal over the weekend. These people suggested an IPO could value the company at around $20 billion, and that Toast approached Goldman Sachs Group Inc. and JPMorgan Chase & Co. to underwrite a possible listing later in 2021.

Toast may also consider other options, such as a sale or a combination with a special purpose acquisition company (SPAC), WSJ sources said.

The speculation comes almost exactly one year after the COVID-19 pandemic forced the restaurant industry to close down dining rooms and significantly alter its focus towards meal formats like delivery, takeout, and curbside pickup. 

Toast initially took a major hit from the effects of the pandemic. In April 2020, the company cut 50 percent of its staff through layoffs and furloughs. It cited the “massive disruption” otherwise known as COVID-19 that “hit the industry overnight” as the driver behind these cuts.

Over the rest of 2020, however, Toast’s situation improved dramatically, thanks to its ability to quickly shift direction. Unable to serve the dining room, the company started adding more off-premises-focused features to its restaurant tech stack, including software to facilitate delivery orders and a set of so-called “contactless” tools that enable digital ordering, payments, and menu browsing. 

As of November 2020, Toast was valued at $8 billion, up $4.9 billion from February of 2020. An IPO would be one of the largest thus far for a restaurant tech company, following DoorDash’s December 2020 IPO, which valued the third-party delivery service at almost $40 billion.

College: the Next Big Frontier for Ghost Kitchens

New bits over the last couple weeks have sent my brain right back to college — specifically to the college dining hall, where myself and others (everyone) used to steal food to take back to our dorms to eat between meals.

OK, I’m not sure that actually classified as stealing, since we were all on prepaid meal plans. But you weren’t allowed to take food out of the dining room, so the act of sneaking, say, a couple oranges and a jumbo ziploc bag of cereal out the door was practically an art form among the student body population.

Gen Z will likely not have to jump through that particular hoop when it comes to getting fed in between regular mealtimes. I was recently reminded of this possibility when news dropped that foodservice provider Chartwells plans to launch a ghost kitchen program across the colleges and universities it supplies.   

Chartwells has already piloted the program at a few schools, including the University of Utah and Seattle University. The idea is to find underutilized kitchen spaces on campus and turn them into ghost kitchens that serve students delivery and pickup meals ordered via the Chartwell’s mobile app.

While the long-term relevance of ghost kitchens is still a hotly debated topic in the the wider restaurant industry, the format seems to be a no-brainer for school campuses. 

As my food-theft story above anecdotally illustrates, students eat at all hours of the day and night, and often those weird hours are out of necessity (e.g., studying late, extracurricular commitments, etc.) Campus dining halls rarely accommodate those hours. Nowadays that leaves students at the mercy of DoorDash or Uber Eats, which, particularly with the newly hiked fees, gets expensive quickly. There’s always, of course, the option to hop in the car and hit the drive-thru, but that takes time and, depending on the restaurant, costs a fair amount of money, too.

Instead of leaving students to the mercy of surrounding restaurants, schools have an opportunity to work with their foodservice providers and offer meals in a wider variety of formats at more times throughout the day and night. The kitchen infrastructure already exists, most notably at dining halls that only operate at specific hours. Those spaces could easily double as kitchens that fulfill pickup and/or delivery orders in the off hours. Schools might even make money off such an operation. 

Meals, meanwhile, could count towards a student’s overall meal plan, and adding a mobile app component, as Chartwells has done, would simplify the entire process. Another approach would be for a school foodservice provider to partner with a third-party mobile app company, as Aramark did with Good Uncle in 2019. Via the Good Uncle app, students at participating schools can browse meals and order them for delivery. The app’s “Flexcash” system is a declining balance that can be re-upped by the student (or their parent) at any time. From there, it functions just as a meal card for the dining hall would.

Food robots, of the small, six-wheeled variety, could also prove themselves a valuable part of the campus ghost kitchen operation. Companies like Starship and Kiwibot can already be found roving about multiple university campuses. In fact, both companies have existing partnerships with yet-another foodservice provider, Sodexo. One can easily imagine one of these roving bots carrying food from an on-campus ghost kitchen to the student’s dormitory or to a centralized pickup point on campus.

A final point in favor of ghost kitchens on campus. We hear often that delivery and takeout can’t replace the restaurant experience, which is true, because eating soggy fries from a cardboard box is decidedly not an experience. But campus dining halls aren’t exactly known for five-star meals, and much of the food served up in these places is already well-suited to travel. There may even be room for improvements in menu offerings, something Chartwells appears to be looking at through its program.

Does all this potential for ghost kitchens, tech, and the like spell the death of the campus dining room? Not likely. In fact, this particular on-premises format is ripe for its own digital reinvention, from automat-style lockers to robot vending machines and even tools in the back of house that can better monitor food safety and food waste. All said and done, there’s arguably enough room for innovation within format as there is beyond it.

Food Tech ‘Round the Web

Meanwhile, over in the regular restaurant world, ghost kitchens are not the future, according to this thoughtful analysis from Grubstreet writer Rachel Sugar.

Also, forget Guy Fieri. White Castle is opening a delivery-only kitchen in downtown Orlando, Florida, which will be in operation next week.

And if you read nothing else in this newsletter, check Eater’s comprehensive coverage on how to help feed those impacted by the Texas winter storms.

Meijer and Flashfood Expand Food Waste Program Across Grocery Stores

Grocery chain Meijer announced this week it is on track to complete its food waste reduction program with Flashfood this year, with plans to expand the initiative across all Meijer stores in the Midwest.

The program, which involves customers buying surplus Meijer food via the Flashfood app, originally launched in 2019 and was slated for a wider expansion in 2020. That expansion was delayed when COVID-19 hit, but Meijer is now expanding the program from its original Detroit, Michigan location to Illinois, Kentucky, Ohio, Wisconsin, and the rest of Michigan. 

Flashfood, headquartered in Toronto, Ontario in Canada, also has “Flashfood zones” available in multiple provinces across Canada as well as in New York and Pennsylvania. The company works with grocery retailers to rescue surplus or cosmetically imperfect foods that would ordinarily go to the landfill.

From the consumer side, users first select their grocery store on the Flashfood app and set it as their location. They can then browse the foods available for purchase via the Flashfood program. Since these items are either surplus or unsellable (for cosmetic reasons) on the stores regular shelves, they are usually priced at a discount, sometimes 50 percent lower.

After selecting and paying for food, the user heads to their designated grocery store and confirms their order with a customer service or staff person. From there, they can retrieve their items from a Flashfood fridge, which is usually kept at the front of the store. As of right now, the process is somewhat manual, since users have to confirm their order with a human being at the store, rather than simply unlocking the fridge with a QR or text code via their smartphone.

The concept of rescuing then reselling cosmetically imperfect produce from the grocery store was, until recently, a fairly niche market in the U.S. The last year has seen the category expand, however. Too Good to Go launched in certain U.S. markets, while Imperfect Foods expanded its grocery e-commerce platform to include pantry staples, meat, and dairy items, in addition to rescued produce. Likewise, Misfits Market runs a robust e-commerce platform in the U.S. for reselling surplus food from grocery stores.

Flashfood’s partnership with Meijer, and this current expansion, will give Flashfood substantially more visibility in parts of the U.S. While the company has not confirmed as much, this could lead to partnerships with other major American grocery retailers in the future.

Skål! Gotland Spirits Launches Vodka Made From Food Waste

Gotland, Sweden-based Gotland Spirits this week launched a new liquor product called SPILL, which the company says is a “premium alcoholic beverage made from food waste.” The product, a vodka, became available to folks in Sweden on Feb. 16, according to materials sent to The Spoon.

To get this “truly sustainable” spirit, the company teamed up with Coop, one of Sweden’s largest grocery retailers. Gotland “rescues” surplus food from the retailer. Among the food types mentioned are pasta, crackers, fruit, and milk powder. 

“We thought, what if instead of producing new carbs, can we recycle what’s already out there,” Johan Johansson, founder of Gotland Spirits, said in a statement sent to The Spoon. By his account, the resulting vodka is on par with Russian luxury vodkas in terms of quality and smoothness.

The company did not provide extensive details on the technical process of creating booze from food waste, but the concept is similar to what other beer, wine, and spirits companies have done in the past: rescue food that would otherwise go to the landfill and use it in the distillation or brewing process to create the beverage. Misadventure Vodka, based in Southern California, makes vodka from rescued baked goods. On the beer side of things, a company called Toast makes craft beer from surplus bread.

Both the U.S. and the EU are similar in terms of where the most food gets wasted along the supply chain: at consumer-facing levels, including grocery stores. Food waste per capita in these regions totals to about 95-115 kg/year, compared to 6-11 kg/year in Subsaharan Africa and Southeast Asia. The EU specifically wastes around 88 million tons of food annually, or upwards of €143 billion, according to the European Commission.

Gotland Spirits is a relatively small distillery, so for now, at least, SPIL is only available in Sweden.

Campus Foodservice Giant Chartwells Brings Ghost Kitchens to Colleges and Universities

Chartwells Higher Education, a foodservice management company, announced today it has launched its ghost kitchen program for college and university campuses. Chartwells has already piloted the program at a handful of schools, including Seattle University, SUNY Buffalo State College, the University of Utah, the University of Texas at Dallas, and San Jose State University.

Working with these schools, Chartwells developed several new meal concepts appropriate for delivery. For example, the company worked with Seattle University to open a ghost kitchen that tested 12 rotating entrees and desserts, which students could order via the existing Chartwells mobile app. Since most of Seattle University’s physical campus was closed during Fall semester 2020, the ghost kitchen pilot also served as a test for how colleges and universities can provide students with food even when dining halls are shuttered. Meals were available for both delivery and contactless pickup.

Chartwells said more than 24,000 orders were placed via its mobile app within the first month of the Seattle University test. Terry Conaty, Resident District Manager at Seattle University, said in a press release that the partnership was a “win-win” because it provided students with “lots of new menu options without having to add additional personnel resources or compromise our social distancing guidelines.”

Chartwells serves more than 300 campuses. The company says this ghost kitchen program will add to rather than replace existing dining options. The idea is to take advantage of any underutilized kitchen space on campuses that can be turned into ghost kitchens.

Historically, few would have called college and university campuses hotbeds for food tech innovation. That has slowly started to change over the last few years with the rise of apps like MealMe and Good Uncle (the latter of which was acquired by foodservice giant Aramark), the presence of delivery bots on campus, and Gen Z’s inherent familiarity with a more tech-driven eating experience. 

Nor is Chartwells the only company bringing ghost kitchens to campus. Last month, hospitality platform C3 joined forces with Graduate Hotels to put more ghost kitchens in college towns. 

The ghost kitchen format is an obvious fit for the college and university market. Students eat meals at all hours of the day and night, a schedule the traditional dining room’s hours don’t typically accommodate. And on the note of dining rooms, there’s no telling whether the traditional cafeteria-style setup will exist once classes shift back to the physical campus. Social distancing will have to be considered when it comes to those spaces, and some students may not feel safe eating in a dining room. Colleges and universities will have to provide alternative options, including pickup and delivery.

Schools, too, are brimming with underutilized kitchen space. For smaller campuses, a few would suffice when it comes to serving the entire student body. For larger schools, one can imagine a network of ghost kitchens placed strategically around the campus, each serving different sets of dormitories and apartment blocks. Meals ordered from campus ghost kitchens could even count as part of a student’s meal plan, which would be considerably cheaper than someone having to order from DoorDash every night.

When schools go back in session very much depends on each individual institution. Many are doing hybrid online-offline sessions right now. The many new food options for students seem geared towards both accommodating these fluctuating schedules and a bid by schools to keep pace with the changing times for foodservice. 

Little Leaf Farms Raises $90M to Grow Its Greenhouse Network

Massachusetts-based Little Leaf Farms has raised $90 million in a debt and equity financing round to expand its network of hydroponic greenhouses on the East Coast. The round was led by Equilibrium Capital as well as founding investors Bill Helman and Pilot House Associates. Bank of America also participated.

Little Leaf Farms says the capital is “earmarked” to build new greenhouse sites along the East Coast, where its lettuce is currently available in about 2,500 stores. 

The company already operates one 10-acre greenhouse in Devins, Massachusetts. Its facility grows leafy greens using hydroponics and a mixture of sunlight supplemented by LED-powered grow lights. Rainwater captured from the facility’s roof provides most of the water used on the farm. 

According to a press release, Little Leaf Farms has doubled its retail sales to $38 million since 2019. And last year, the company bought 180 acres of land in Pennsylvania on which to build an additional facility. Still another greenhouse, slated for North Carolina, will serve the Southeast region of the U.S. 

Little Leaf Farms joins the likes of Revol Greens, Gotham Greens, AppHarvest, and others in bringing local(ish) greens to a greater percentage of the population. These facilities generally pack and ship their greens on the day of or day after harvesting, and only supply retailers within a certain radius. Little Leaf Farms, for example, currently servers only parts of Massachusetts, Pennsylvania, New York, and New Jersey. 

The list of regions the company serves will no doubt lengthen as the company builds up its greenhouse network in the coming months. 

Revol Greens Launches Its Own Plant-Based Nutrient Source for Greenhouses

Greenhouse lettuce grower Revol Greens today unveiled a proprietary plant-based nutrient source with which it can feed the plants in its indoor farms. Dubbed Plant Fed, the product is currently patent pending, and its existence on Revol’s farms means leafy greens will be fed entirely by plants and not with animal ingredients, as is often the case with fertilizer.

Revol raised a $68 million funding round in September 2020 to build out its network of greenhouses. Currently, the company operates a 10-acre greenhouse in its hometown of Owatonna, Minnesota. Two more facilities, one in California and one in Texas, are slated to open in 2021.

The Revol process relies on as much automation as possible, though not necessarily of the robotics variety. Machines automatically sow the seeds in grow trays, which are then moved from the germination room to the greenhouse via a water flume and placed in a massive pools of water with their roots exposed. Human hands pick up the trays to move them from sowing machine to flume then out of the water pools, but people never touch the actual plants.

Meanwhile, much of the farm’s water source comes from UV-sterilized rainwater and snowmelt collected from the roof of the facility. This is an improvement over traditional farming, where produce often shares a water source with nearby animals, thus upping the risk of contamination to the plants. 

Like other hydroponic-based operations, Revol’s method grows plants without any soil. Instead, the new Plant Fed nutrient source will be pumped into the water that is circulated into the pools in which plant roots are exposed.

“The plant-based natural fertilizer developed by our research and development team is an extension of our goal to provide the healthiest, most natural leafy greens to our customers,” Revol’s CEO Mark Schulze said in today’s press release. 

Revol is certainly not alone in that goal, with recent activity in the high-tech greenhouse space underscoring the sector’s possibilities when it comes to future farming. Gotham Greens raised $87 million for its own greenhouse network at the end of 2020, and of course there was the news of AppHarvest going public earlier this year. 

Revol’s Plant Fed nutrient is only feeding the greens in the company’s own facility for now. Whether the company ever decides to sell its product to other controlled ag operations remains to be seen.

McDonald’s Agrees to Third-Party Audit of Disputed Technology Fees

Ernst & Young will conduct an independent audit of the new technology fees McDonald’s assigned to franchisees at the end of 2020, according to a report from Business Insider.

The review, requested by a group of McDonald’s operators called the National Franchisee Leadership Alliance, will look into the $423-per-month technology fee McDonald’s announced in December of last year. Franchisees contest they owe this fee and have paused non-essential communications with corporate in response.

The monthly technology fee, which corporate would begin charging franchisees next month, is part of a $70 million debt McDonald’s claims its operators owe for a “lag” from an old payment structure. McDonald’s controls most of the technology in its stores and charges franchisees a fee for use of that tech. Tech has been an ongoing point of friction between McDonald’s and its franchisees for years now, with operators with operators increasingly frustrated over how much they must pay. 

This is further aggravated by the sheer amount of tech getting implemented at McDonald’s restaurants nowadays, from Dynamic Yield’s artificial intelligence system in the drive-thru to the increasingly popular McDonald’s mobile app. And McDonald’s is just getting started when it comes to digital ordering, drive-thru tech, and other digitization efforts of its business.  

According to Restaurant Business, franchisees argue they do not owe back pay for tech such as the mobile app. McDonald’s corporate, on the other hand, says it has “absolute confidence” that these fees are owed to the company. 

Franchisees will start talking with McDonald’s field officers over the issue, but non-essential communication with corporate remains paused. Restaurnat Business noted that the end of these talks between corporate and franchisees could well mean that the dispute eventually goes to court. 

While McDonald’s seems to have more disputes with its franchisees than most major QSR chains out there, the ongoing battle highlights some of the complications of digitizing a QSR brand. The pandemic’s impact on the restaurant industry has shifted the bulk of business for QSRs to off-premises meal formats, which increasingly rely on digital ordering. Whether other QSRs that rely on a franchise-based model encounter some of these issues as they digitize their businesses remains to be seen.

Meanwhile, the Ernst & Young review is expected to take a few weeks at the very least. 

MealMe’s App That Compares Food Delivery Services Is Set to Expand Across College Campuses

MealMe, a company known for its app that aggregates and compares all the major restaurant delivery apps, is headed to the college market. It will soon launch at Syracuse University and is currently available at Indiana University. 

The MealMe app, which the company calls “search engine for food delivery,” compares the various delivery apps like Grubhub and Postmates as well as some smaller, more regional services. Upon opening the app, users can search for a restaurant or food type and compare pricing, delivery times, and other elements across the different services.

The app aims to streamline the process of comparing pricing, wait times, and other elements across the different delivery apps, and to connect users with the best deals in their area. In the last year, the MealMe team has also added a checkout function to their app, so that a user doesn’t actually have to leave the MealMe interface to order from, say Grubhub.

That said, MealMe is strictly an aggregator and does not charge people for use of the app, although users can add a “MealMe” tip to their order. The company has deals with the major third-party delivery providers.

The app originally launched in 2016 as a kind of social network for food. The idea struggled to gain much traction, and MealMe reinvented itself in March of 2020 right after the pandemic struck the U.S. and subsequently forced restaurants to shift to delivery and takeout orders. That same year, the company was accepted to the TechStars Atlanta accelerator program.

While the MealMe app is running across the country, the college market is an area the company’s founders are specifically targeting. It launched at George Washington University in January, and has since added Syracuse and Indiana Universities to its roster. “Although we are live, technically, we want to form relationships with individuals at every university and do a hard launch at every school so that people know about MealMe,” MealMe president Matthew Bouchner told Syracuse-centric news site The Daily Orange.

MealMe joins a number of companies developing different ways to bring more food delivery to the college and university sector. Recently, hospitality platform C3 announced a deal with Graduate Hotels to bring virtual food halls to many a college town across the U.S. Starship, maker of the autonomous six-wheeled rover bot, has been delivering food to students for a couple years now. Even legacy players are involved, the best example being Aramark and its 2019 acquisition of order-ahead app Good Uncle.

College campuses have long been an important market for the food delivery sector. Having a presence at a university means potential exposure to tens of thousands of people from the student body population. Additionally, the major delivery services already deliver to college campuses, so MealMe’s new audiences will most likely already be used to getting their meals via digital- and delivery-centric channels. 

Report: Consumers Spent $486B on Takeout in 2020

Consumers spent $769 billion ordering food from restaurants last year, according to a new report from Paytronix and PYMTS. Takeout orders accounted for $486 billion, or 63 percent. of those sales. 

The report, based on a survey of U.S. consumers, is the latest in Paytronix’ ongoing “Delivering on Restaurant Rewards” series. Paytronix, of course, has skin in the game, it being a restaurant-tech company that specializes in digital ordering and payments solutions. That said, the report’s findings that underscore the popularity of takeout and digital ordering line up with other statistics we have seen over the last few months around the future of these ordering and eating formats.

Online ordering drove the majority of takeout orders in 2020, according to the Paytronix report. A total of 89 percent of consumers said they had placed their takeout order via a digital channel, such as an app, a website, or a third-party aggregator (e.g., DoorDash). The majority of those meals ordered digitally were from restaurants that, prior to the pandemic, had only ever offered dine-in service. “Our research shows that $264 billion, or 61 percent, of the $435 billion consumers spent on online food orders in 2020 was spent at restaurants that had only offered sit-down dining services prior to the outbreak,” notes the report. 

Consumers also spent “50 percent more on average” when they placed takeout orders through digital channels.

Putting a takeout strategy in place was one of the first pieces of advice for restaurants to be widely circulated at the start of lockdowns last year. Takeout offered a way for restaurants to reach customers without serving them in the dining room, and could be done without coughing up the hefty commission fees third-party delivery services charge restaurants on delivery orders. For customers, too, takeout provided an often cheaper option, since they didn’t have to pay the service fees associated with delivery orders. 

None of those factors are any less important now that we’re a year into this pandemic and restaurants have resumed (some) dine-in service. In fact, the future of the dining room is kind of a giant question mark right now, and restaurants are encouraged to continue building out a robust to-go business. Takeout is still arguably the most important part of those strategies. 

A Designer From Spain Has Turned Food Waste Into a Skincare Line

Redistributing cosmetically imperfect produce via grocery and restaurant services is one way to keep food out of landfills. Turning those cosmetically imperfect fruits and veggies into actual cosmetics is another method, and one Spanish designer Júlia Roca Vera is taking with her Lleig skincare line.

Dezeen, a website covering all things design, profiled the process Vera used to make four different skincare products from a single piece of fruit, in this case an orange that was discarded because it was cosmetically unacceptable by supermarket standards. From that orange, Vera, who is currently a design and engineering student, created moisturizer, a soap, a potpourri, and a juice for drinking.

Lleig (Catalan for “ugly”) is as much a conceptual design project as it is a skincare line, with products coming in reusable clay containers and the suggestion to complete certain rituals during the skincare process. Vera worked with Espigoladors, a social enterprise that “rescues” cosmetically imperfect produce, to source the food used for the project. While she focused on an orange, she told Dezeen that her process would also work will apples, bananas, carrots, and other fruits and vegetables.

There’s no way to purchase Lleig right now, as it’s more design statement than scalable product at the moment. The larger point of the project is to raise awareness about why we throw certain foods away as well as what can be done with those items instead of tossing them in the landfill. Vera told Dezeen that she “hopes to encourage a holistic approach to beauty that prioritises health and wellbeing over external appearance.” That goes for humans and produce items alike. 

In the U.S., rescuing cosmetically “unfit” produce is still a fairly new area of the food industry, with its main players companies like Misfits Market and Imperfect Foods that sell this rescued food as discounted groceries. Whether skincare made from food waste every becomes a scalable notion remains to be seen. However, the idea does give us one more reason to keep food out of the landfill.

Bowery’s Founder, Irving Fain, on the Future of Vertical Farming

At one point in the not-so-distant past, vertical farming’s role in our future agricultural system was far from certain. Growing leafy greens in warehouse-like environments controlled by tech seemed like a compelling business, but one that had yet to prove itself either economically or as an important source of food for a growing world population.

That, at least, was a common sentiment Irving Fain, CEO and founder of Bowery, met with when he started his vertical farming company five years ago. “There was a bit of skepticism around it,” he told me over a call recently, suggesting that five years ago, there were a lot more “ifs” than “whens” in terms of vertical farming’s future.

Fain, Bowery, and the entire vertical farming industry get a much warmer reception nowadays. Investment dollars are pouring into the space. Around the world, companies, scientists, and food producers are using the method to not just supply upscale grocery stores with greens but experiment with breeds of produce, feed underserved populations, and grow food in non-arable regions. As Fain suggested when we spoke, the last 12 months seem to have turned those “ifs” into definite “whens.” 

Bowery’s last 12 months also illustrate this change. Fain said that Bowery went from under 100 retail locations about a year ago to nearly 700 right now, and will be in more than 1,000 “in the coming months.” Its produce is in a number of food retailers around the Mid-Atlantic and Northeast, including Whole Foods Market, Giant Food, Stop & Shop, Walmart, and Weis Markets. And in 2020, the company experienced “more than 4x growth” with e-commerce partners.

While the pandemic is responsible for some of this popularity, Fain insists it is not the only reason for the eventful year. “It’s definitely bigger than the pandemic,” he said. “What you’re seeing is a food system that’s evolving and [people have a desire] to see transparency and traceability in the food system.” These, he says, are issues the traditional food supply chain isn’t really able to address right now, hence the opportunity for companies like Bowery, which effectively cut multiple steps out of the supply chain.

Bowery grows its greens (lettuces, herbs, and some custom blends) inside industrial spaces where crops are stacked vertically in trays and fed nutrients and water via a hydroponic system. Technology controls all elements of the farm, from the temperature inside to how much light each plants get. The company currently operates two farms, one in New Jersey and the other in Maryland. A third is planned for Pennsylvania.

Technology, in particular, is something Bowery has big plans for. On top of a retail expansion, Bowery also added some notable personnel to its staff, including Injong Rhee, formerly the Internet of Things VP at Google as well a chief technologist at Samsung. Having such technology chops onboard will be vital in order for Bowery to realize many of its ambitions around advanced automation, which has the potential to optimize many parts of the seed-to-store process for vertically grown greens. 

For example, Bowery’s farms are equipped with sensors and cameras that are constantly collecting data — “billions” of points, according to the company — that can be used to not just observe the current state of plant health but also predict the most optimal growing conditions for each crop. Elements like temperature, humidity levels, nutrient levels, and light intensity can all be adjusted, via the BoweryOS software, to create those optimal conditions. The end result is more consistent crop production, better yields, more flavorful food, and, ideally, a better nutritional profile for the greens compared to what conventional produce offers.

The system can also, through automation and AI, detect problems with plants. In a recent interview with Venture Beat, Bowery Chief Science Officer Henry Sztul used the example of butterhead lettuce yellowing at the edges during growth. Bowery’s system is technologically advanced enough at this point that it is starting to understand the conditions that create those yellowing edges. That foreknowledge, in turn, will allow growers to adjust the crop “recipe” (see above mixture of lights, temperature, etc.) to avoid the problem.

It took Bowery years to get to this point in terms of what its technology is capable of doing. “The system [for] indoor farming that you choose has a direct impact on the crops you’ll be able to grow, on the margins you’ll be able to generate, and on the return profile of the business itself,” said Fain. “And so being incredibly intentional and thoughtful about what technology you use is something we spent a lot of time on because it has an extraordinarily important economic impact.”

On a less technically complex note, controlled ag from Bowery and others also goes some way towards reinventing the supply food chain. Rather than greens being harvested in, say, Mexico and shipped via a complex distribution process all the way to Baltimore, they are packaged up at the farm and distributed to nearby retailers, usually those within a day’s drive “It is much more sustainable. It is much more efficient, and it’s more reliable, and those things have been important to consumers long before COVID,” said Fain.

Bowery will continue to innovate on both the technology and supply side of its business, as well as with the food itself. The company just launched a new specialty product line that will experiment with different flavors of greens and change frequently.

In terms of tech, Bowery’s latest farm, currently being built in Bethlehem, Pennsylvania, will incorporate even more automation than the company’s two existing farms. That location is slated to open later in 2021. When it does, Bowery will be capable of serving nearly 50 million people within a 200-mile radius.

The company hopes to expand its geographic reach much wider some day, building farms near most major U.S. cities and beyond. Given the increased confidence in the vertical farming sector as a whole, now looks to be the optimal time to move towards those ambitions.