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ChatGPT

January 29, 2024

Chris Young: Generative AI Will Provide Big Payoffs in Helping Us Cook Better, But Overhyping It Will Burn Some Folks

Chris Young has never been shy about providing his thoughts about the future of cooking.

Whether it was on stage at the Smart Kitchen Summit, on his YouTube channel, or a podcast, he’s got lots of thoughts about how technology should and eventually will help us all cook better.

So when I caught up with him last week for the Spoon Podcast, I asked him how he saw things like generative AI impacting the kitchen and whether it was necessary for big appliance brands to invest in building out their internal AI competencies as part of their product roadmaps for the next decade. You can listen to the entire conversation on The Spoon podcast.

I’ve excerpted some of his responses below (edited slightly for clarity and brevity). If you’d like to listen to the full conversation, you can click play below or find it on Apple Podcasts or wherever you get your podcasts.

On the resistance by some to using advanced technology to help us cook better:

Young: “A lot of people are focused on going backward in the kitchen. They want to go back to cooking over charcoal and cooking over fire. That can be fun, but if you look back at what it was really like in the 19th century, the kitchen was not a fun place to be.”

“The modern kitchen is much healthier and much safer. And it does a better job of cooking our food. But we’ve kind of stalled, in my opinion, for the last couple of decades of really innovating and creating a compelling vision of what the future of the kitchen can be. I think the idea that our appliances are too stupid to know when to turn the temperature up or down to cook my food correctly is bizarre in the modern world where sensitive, high-quality sensors are cheap. And we have unlimited compute and AI now to answer a lot of these questions that humans struggle with, but I don’t see the big appliance companies or the incumbents doing this on their own. So, my small contribution was to create a tool that measures temperature and makes it very easy for people to do things with those measurements.”

On why it’s important to create a vision for the future of a technology-powered kitchen:

Young: “My criticism with a lot of people in this space is they haven’t sold a vision of what the future of that your kitchen could be like that resonates with people, that feels human, that makes it a place I want to go that is forward-looking rather than backward-looking. The kitchen of the 1950s, the kitchen of the 1920s, feels more human, feels more relatable, and I think people want that. It’s not to say you can’t create a forward-looking vision of a kitchen where it’s easier to cook food, it’s easier to bring people together and have everything work out right, but nobody’s really creating that vision.”

Combustion’s thermometer runs its machine-learning calculations on the chip within the thermometer rather than in the cloud where many AI compute happens. Young explains how – and why – they made that possible:

Young: “One of the crazy challenges was this is some pretty hardcore math. I think even we initially thought, ‘Oh, we’re gonna have to run this on the cloud, where we essentially have unlimited compute to run these fairly sophisticated algorithms.’ But we have some very clever software and firmware people on our team who have a lot of experience doing these kinds of hardcore machine-learning algorithms. And we were able to basically figure out some clever trick techniques to get the stuff running on the thermometer. The benefit is that it means the thermometer is always the ground truth; if you lose a connection, if you walk too far away, or if Bluetooth gets interrupted, or if any of that happens, the thermometer doesn’t miss a beat. It’s still measuring temperatures, it’s still running its physics model. So as soon as you reconnect, the results are there, and nothing has been lost.”

Young on the benefit of generative AI:

Young: “In the short term, AI as it’s being marketed is going to be disappointing to a lot of people. It’s going to burn some people in the way that IoT burned some people. But there’s going to be meaningful things that come out of it.”

“…When I was playing with ChatGPT 3.5 and I would ask it cooking questions, the answers were mostly garbage, as judged from my chef perspective. When GPT 4 came out, and I started asking some of the same questions, the answers were actually pretty good. I might quibble with them, but they wouldn’t completely fail you and they weren’t garbage. And if you modified the prompt to rely on information from Serious Eats, ChefSteps, or other reputable sources, all of a sudden, I might have given you a different answer, but it’s not necessarily better. And in many cases, what people want is a good enough answer. Building those kinds of things into the cooking experience where, when you run into a problem, or you’re confused about what this means, something like the Crouton app, or the Combustion app, or a website can quickly give you a real-time good enough answer, that actually solves your problem and keeps you moving forward and getting dinner done. Those I think will be really, really big payoffs, and that stuff’s coming.”

Young on whether big food and appliance brands should invest on building their own AI internal competency:

Young: “It’s hard to give advice when that’s not my business. But I have a few observations from having worked with these companies. It’s very hard to sustain a multi-year effort on something like an AI software feature. For these companies, that culture doesn’t exist, the way of thinking about the long term payoff of software tends to not be a strength of these companies. And so while they have the resources to go do this, the willingness to make those investments and sustain them, for years and years and years, and learn and iterate, that hasn’t proven to be their greatest strength.”

“I think that is kind of why there was an opportunity for Combustion, and for a company like Fisher Paykel (ed note: Fisher Paykel has integrated the Combustion thermometer to work with some of their appliances) to recoup the millions and millions of dollars, we’ve invested in the AI in our algorithms team. (Fisher Paykel) could maybe build the hardware, but doing the software, investing in the hardcore machine learning research, I think it would be very hard for them to sustain that effort for three or four years when they’re only going to maybe sell 12-25,000 units a year. We’re in a much better position because we can spread it across the entire consumer base.”

“And so I think you’re going to see more partnerships emerging between the big appliance companies that can provide the infrastructure, the appliance that’s got ventilation over it, that’s plugged into a 240 volt, 40 amp or 50 amp circuit. They’re going to be very good at that. If they basically open up those appliances as a platform that third-party accessories like the predictive thermometer can take advantage of, I think over the long term, they actually take less risk, but they actually get a market benefit.”

“Because as more small companies like Combustion can get wins by integrating with these appliances inexpensively and easily, making our products more useful, I think you’ll start to get a lot of things like the rice cooker no longer has to be a dedicated appliance that you put in a cabinet. Instead, it can be a special pot that goes on the stove. But now it can communicate with the stove to do what a rice cooker does, which is turn the power on and off at the right time. And now a lot of these small appliances can migrate back to the cooktop, they can migrate back into the oven.”

If you want to hear the full conversation with Chris Young, you can click play below or find the episode on Apple Podcasts or wherever you get your podcasts.

April 18, 2023

2023 Restaurant Tech EcoSystem: Nourishing the Bottom Line

In collaboration between TechTable and Vita Vera Ventures, we are pleased to share an updated 2023 Restaurant Tech Ecosystem map.

We all saw that the pandemic brought a wave of experimentation in the restaurant tech space, but we also know that tech-driven change is not always linear. 

In early 2022, we made bold predictions about the restaurant tech environment in 2023, as we anticipated numerous acquihires ahead (acquisitions primarily driven by tech talent vs strategic tech value). This was due to the tight tech labor market (at the time) and the increasingly challenging funding and interest rate conditions. 

However, with the recent wave of macro tech layoffs, the tech labor market is no longer tight, and we believe more restaurant tech companies may be forced to shut down rather than finding a soft landing through acquisition. We’ve already seen a strong reset on requirements for capital efficiency and valuations of startups in the sector. This macro shift may create potential for rollup opportunities, but many early-stage assets across the sector are overfunded single-point solutions and still subscale.

This is ironic as the need for tech-driven solutions has never been stronger, but companies without the right growth metrics will likely struggle to survive. The inflationary environment is also forcing harder decisions for operators, which may further dampen their willingness to engage with new solutions.

With that in mind, we are pleased to share our 2023 Restaurant Tech Ecosystem, which serves as a current heat map of the broader ecosystem within the US (and is clearly not exhaustive). 

Click here to enlarge/download image of map. Click here for downloadable PDF.

The Journey from Point Solutions to Comprehensive Tech Stacks

While single-point solutions for things like online ordering, loyalty programs, and delivery were popular during the pandemic, we have reached a moment now with perhaps too many point solutions in the market. 

Tech stacks that require too many logins are now in fact creating a cognitive burden for employees, rather than the intended promise of efficiency and ease of use. As a result, operators are beginning to seek integrated systems and smaller tech stacks that can do more. (See commentary in the previous section about rollup opportunities!) 

Restaurant tech advisor David Drinan succinctly identifies the near-term priority for most operators: “The restaurant industry is thirsty for technology innovation that will deliver high margin, incremental revenue.”

On the operational side, managers are still struggling with certain areas such as scheduling and inventory management. These tasks can be time-consuming, especially for independent restaurant owners who have limited resources. As a result, we have seen a growth category of solutions that can automate these functions and provide real-time data to help operators make informed decisions.

Help *Still* Wanted   

The labor shortage in the restaurant industry has been a major challenge for operators in recent years, and labor optimization is still at the top of every operator’s mind. The pandemic caused many workers to permanently leave the hospitality industry, leaving restaurants short-staffed. 

According to the National Restaurant Association, almost two-thirds of US restaurant operators say they do not have enough employees to support existing demand. Instead of replacing this lost workforce, many operators are turning to tech to automate more functions and reduce the need for human labor. 

From digital menus and ordering kiosks to automated kitchen equipment, there are many ways that technology can help restaurants operate more efficiently with fewer employees. By automating basic tasks such as taking orders and processing payments, operators can free up their staff to focus on more complex tasks that require human expertise, such as customer service and food preparation.

Another trend the restaurant industry is grappling with is the changing expectations of younger workers when it comes to the employer/employee relationship. With more emphasis on work-life balance, career development, and job satisfaction, younger workers are looking for more than just a paycheck. 

To meet these expectations, operators are looking for workforce management solutions that can help to improve engagement, development, and rewards for their employees. This includes tools for tracking and managing schedules, as well as innovative solutions for tip outs and other compensation mechanisms. By investing in these solutions, operators can not only attract and retain top talent but also improve the overall efficiency and productivity of their workforce.

Finally, it is worth noting that basic scheduling and labor management tools can have a significant impact on profitability by reducing labor costs and improving operational efficiency. By automating scheduling and timekeeping, for example, restaurants can reduce the likelihood of overstaffing or understaffing, which can be costly in terms of wasted labor or lost sales opportunities. 

In the end, the ability to leverage technology to optimize labor is critical for restaurants to remain competitive in a challenging operating environment. While kiosks and text ordering have shown promise in the QSR space, there are many other opportunities for technology to make a positive impact on the industry as a whole.

Ghost Kitchens: It’s Even More Complicated

In our 2021 restaurant tech retrospective, we had a lot to say about this growing subsector, including the challenges for success (a.k.a. profitability) within the confines of a ghost kitchen business model.  

Now, as the concept of virtual and ghost kitchens continues to evolve even further, it’s important for operators to understand the complexities involved and navigate these challenges to build successful ghost kitchen operations.

One major obstacle has been the potential for tension between virtual brands and existing businesses, where adding virtual brands can lead to direct competition with their own existing businesses. Finding the right tech and operational partner to balance between these two is key.

Additionally, ensuring food safety and maintaining quality standards across multiple brands can be a challenge. Many of the generic virtual brands have lacked distinct value or clear taste standards, leading to underwhelming food quality issues and removal from the major third-party delivery platforms.

Last Mile Magic

Making the economics work for restaurant delivery is a growing priority for the industry. This includes better interoperability between POS/Kitchen systems and delivery providers, better routing and batching systems, localized kitchens, and of course even the mode of transportation for delivery.

We are tracking over 20 companies in the North American unattended last mile category, but it is still early days with most (all?) of the solutions operating in limited geographies and customer trials. So we have left this slice off the infographic for 2023, but don’t forget to keep your eyes on the sky, as we’ve seen recent growth of backyard drone delivery companies which are proving to be faster and better for the environment (if they can outweigh the noise and regulatory concerns).

GenAI on the Menu

Tech entrepreneurs have long dreamed of personalized food recommendations, but few have succeeded in creating true personalization beyond dietary concerns, allergens, or ingredient likes/dislikes. 

However, we have now reached a unique moment where new technologies like ChatGPT will be able to create meaningful and personalized interactions with guests. This has always been the premise of a variety of AI-driven restaurant tech startups, but the ability to leverage the underlying data to engage and interact with guests in a truly personal and conversational manner is game-changing. 

By using data from previous orders and interactions alone, ChatGPT can help to create a more tailored experience for guests, from recommending menu items to offering personalized promotions. ChatGPT can become a critical part of a restaurant’s marketing team by creating content, with the ability to easily translate to different languages as well. This could give operators a crucial competitive advantage as consumers demand more personalized experiences. We have only begun to see the capabilities of ChatGPT with free templates being offered to restaurant operators already.

Moreover, conversational AI like ChatGPT can also be a valuable tool for restaurant operators seeking to understand their own operating metrics. By integrating ChatGPT into their tech stack, operators can ask natural language questions and receive real-time responses, empowering them to make informed decisions about their operations.

Emerging Restaurant Tech Concepts to Watch

  • Chat/AI across marketing and operations
  • Tech-enabled employee support and training (for example, personalized perks, tip-out options, or language choices) 
  • AI for scheduling to free up managers
  • Dynamic pricing
  • Reusable containers + tech-driven circular economy for foodservice 

Looking ahead –  As always, we welcome your thoughts and reactions, and look forward to continuing to follow this sector together in the coming years. Reach out to us: Brita@vitavc.com and hello@techtablesummit.com. 

March 24, 2023

Instacart Announces ChatGPT Plugin to Power Conversational Shoppable Recipes

The wave of ChatGPT integration announcements is just getting started, and this week Instacart debuted its first effort to tap into the generative AI zeitgeist with the debut of its ChatGPT Instacart plugin.

The plugin, explained in detail in a blog post by the company’s chief architect JJ Zhuang on the company’s website, allows Instacart users to ask for recipe advice and guidance using natural language with ChatGPT. From there, the OpenAI-powered chatbot will respond with a recipe suggestion followed by a prompt that tells the user that Instacart can turn the recipe into a shopping list.

In the video below, you can watch a fish taco recipe magically transformed into a shoppable recipe via ChatGPT.

The news of the new plugin comes after OpenAI namechecked Instacart earlier this month when announcing the release of its developer APIs for integration of ChatGPT into their apps. In the announcement, they hinted that they were thinking about the same fish taco recipe Instacart showcased in this week’s news.

To use the new plugin, users must log in to ChatGPT and look for the Instacart carrot under enabled plugins. The plugin is only available to ChatGPT Plus paying subscribers, but Instacart says that they and OpenAI plan to make it available to all ChatGPT users in the “coming weeks.”

One interesting detail in the announcement was the mention of what are essentially guardrails the Instacart team has built into the plugin. From the post: “At Instacart, we know that large language model technology is still in its early stages, so our ChatGPT plugin is a custom, constrained tool that will be triggered only in response to relevant food-related ChatGPT questions, and people won’t be able to use it for non-recipe related tasks.”

What this means is the company wants to ensure that folks are only using its plugin for food-relevant content and not trying to get it to, say, write a poem about the virtues of its personal shoppers or to give suggestions about who to pick for their fantasy baseball team. That said, ChatGPT is a bit unpredictable, and there’s always the chance a clever query crafter could get a brand’s plugin to hallucinate and spit out something off-brand or off-topic, which is why Instacart lets us know they will be rolling the plugin out “thoughtfully and make any modifications as needed along the way.”

I like the move, but I think the tool’s adoption will likely be somewhat limited until we see the integration of the AI tool into the Instacart app. While the announcement doesn’t say when ChatGPT will be embedded within the Instacart app, I’m pretty sure that’s something the developers are working on.

Stepping back, it’s clear that food retail will be one of the most active sectors to integrate generative AI, and not just ChatGPT. Earlier this week, I wrote about the launch of a new proprietary generative AI platform called Open Quin. Open Quin’s first targeted vertical is grocery shopping, where users can ask for food guidance in natural language.

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