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The Spoon

Daily news and analysis about the food tech revolution

Coronavirus

The Spoon team is working hard to bring you the latest on the impact of COVID-19. Bookmark this page for our full archive on the pandemic and how the food industry is embracing innovation to fight back.

On April 6th, The Spoon had a full day virtual summit on COVID-19 strategies for food & restaurants. You can watch all the sessions from our virtual strategy summit here.

You can also check out this COVID-19 resource page for food and restaurant industry.

Revention Rebrands as HungerRush, Launches Off-Premises Enhancements

Restaurant tech company Revention has rebranded as HungerRush and announced a new set of features aimed at helping restaurants fulfill off-premises orders. According to a tip sent to The Spoon, new products include contactless delivery capabilities, driver tracking, and integration with third-party delivery services.

HungerRush’s focus on digital ordering and off-premises orders isn’t completely new. As Revention, the restaurant management platform already included integration with some delivery companies, mobile and online ordering, and the ability to manage customer loyalty programs. 

The new features are mostly enhancements to existing products. HungerRush Drive lets restaurant operators track drivers as they deliver orders, which is becoming a more common practice nowadays. There is also messaging system for curbside pickup orders, where customers can notify the restaurant when they arrive, as well as the addition of more integrations with third-party delivery services, including Postmates, Grubhub, and “hundreds more,” according to today’s press release.

HungerRush is rebranding and releasing these features at at time when most restaurants continue to focus on improving their digital ordering as well as the process for takeout and delivery. The pandemic forced many restaurants into the off-premises world, and though dining rooms have reopened in a lot of states, they’ve done so with reduced capacity, not to mention customer base rather wary of going out to eat. It’s pretty much assumed at this point that restaurants must continue building to-go strategies to make up for lost revenue and keep the lights on.

Many a tech company promises to help in that area. Toast, Presto, CardFree, Sevenrooms, and a boatload of others have all announced new features or product enhancements that emphasize digital ordering and contactless delivery/pickup.

How well they deliver on these promises is what will determine who has value and who’s expendable when it comes to choosing a restaurant tech platform. For example, having a system for customers to message the restaurant when they arrive for their curbside order is smart. But geofencing tech, which automatically alerts the restaurant when a customer arrives, is even more efficient. 

HungerRush is old guard when it comes to restaurant tech companies, having been founded in 2003. (It’s also very popular with pizza chains, for some reason.) Time will tell if these new enhancements to its platform will be enough to compete with the dozens of other offerings vying for dominance as the restaurant industry reinvents itself. 

In Through the Outdoors? Restaurants Hit the Pavement as They Reopen

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Not so long ago, outdoor space at a restaurant was just a nice-to-have feature some restaurants could afford to offer. Surprise surprise (not), the pandemic is changing that. With new guidelines and requirements around safety and social distancing, more restaurant experiences are moving outdoors. And it’s not just for dine-in customers, either.

This week, San Francisco Mayor London Breed announced the Shared Spaces Program, which in part allows restaurants to use public space like sidewalks, whole or partial streets, and parks to fulfill restaurant pickup orders. Restaurants can apply for a permit for free, and once the city approves dine-in service for outdoor space, those areas can be used to seat customers as well.

San Francisco isn’t alone. San Jose this month approved its “al fresco plan” that will allow restaurants to use some public spaces to fulfill takeout orders and eventually hold more seating. In Rotterdam, The Netherlands, restaurants will be allowed to convert parking spaces in front of their buildings to do the same.

While these measures could help restaurants eventually boost dine-in traffic once they reopen, at present, they may actually help restaurants run smoother to-go operations. Trying to run an ad hoc takeout business is challenging for many restaurants that have previously only operated under a dine-in model. In some cases, selling to-go orders has caused outright mayhem as crowds of people gather to wait for their to-go orders and staff dart around trying to determine which meal belongs to which angry customer.

Make no mistake: there will be operational challenges using public spaces, too. In fact if it’s not managed correctly, the whole thing could become its own social-distancing disaster. Viewed through a more optimistic lens, it could provide more space for customers and delivery drivers waiting to retrieve their orders. 

And you know what would really enhance the public spaces restaurant experience? Some technology. Earlier this week, I spoke with two companies, hardware manufacturer Elo and software startup Clicksys, about a new self-service kiosk they’re trialing at a restaurant in Stockholm, Sweden. 

In summary, the idea is to have a kiosk installed into the front wall or window of a restaurant, much like a bank ATM, so that folks passing on the street can simply stroll up, order, pay, and wait for their food without having to actually enter the restaurant.

There are a lot of good use cases for this idea, and these newfound public spaces are one of them. If we’re talking about relieving operational mayhem, an automated system would cut down on the amount of people milling around in said public space. Staff would not need to man an order station, since the kiosk processes ordering and payments. And since the system texts users when their meal is ready, those customers would be able to better time their entrance and exit and not have to stand around playing the waiting game.  

The Elo-Clicksys machine is currently only available in Europe, but there are plenty of restaurant tech companies in the U.S. that should take note of this concept. Right now, front-of-house technology is having to truly prove its worth in a world without dining rooms. Self-service kiosks (with hand sanitizer next to them, please) built for the outdoor world could prove lucrative in the coming months. 

Off-Premises Sales Are Back Up

Another reason the forthcoming Shared Spaces could get a lot of use this summer: sentiment around off-premises orders is back up. Nation’s Restaurant News reports that after taking a big dip at the beginning of May, when many restaurants began to reopen dining rooms, sales of takeout orders are back up.

Restaurant analytics firm Black Box Intelligence, which provided the source material for NRN’s post, said that early in May, customers complained of long wait times for curbside pickup orders but that “guest sentiment trends have started to recover as of week-ended May 24, with off-premise sentiment returning to similar levels as were seen in April.”

Presumably, people got excited about going back to restaurants instead of ordering takeout, then realized what a pain in the a$$ dine-in service is going to be for a long time to come. Guidelines vary from state to state in the U.S., but almost all of them include reduced capacity, reduced party sizes, no buffets, and in some cases a mask requirement. Add to that the trepidation most of us wear with our masks these days anytime we set foot in public, and it’s not exactly a recipe for a packed house.

While Black Box didn’t cite the specific reason for the uptick in off-premises orders this month, my guess is that folks are still more comfortable waiting for a to-go box than eating at a sparsely populated dining room fraught with anxiety. 

DoorDash Launches an E-commerce Platform for Indie Restaurants

Ever looking to capitalize on this boost in off-premises orders, DoorDash this week announced a new e-commerce platform for independent restaurants. It’s called the DoorDash Storefront, and it’s supposed to offer restaurants a way to build out their own digital storefronts through which they can process orders and payments. Restaurant sign up with the platform and get their own website/app for takeout and delivery orders — powered, of course, by DoorDash’s system. The digital storefront also plugs into DoorDash’s fulfillment network of drivers, so the food can actually get delivered.

DoorDash is actually addressing a need here. Sophisticated mobile apps that process orders, payments, and loyalty points are expensive and complicated to build. Small restaurants and restaurant chains generally can’t afford them, which is a negative in a restaurant industry that was just forced to go almost entirely off-premises. DoorDash said in a press release that about 40 percent of its restaurant customers do not have their own e-commerce platform.

What isn’t mentioned is what the storefronts will cost the restaurants. In bold-faced text, the company’s blog post stated that restaurants “control and own the customer experience.” It does not say customers own the data — a major issue with using a third-party delivery platform — nor does it go into exactly how the restaurant owns the customer experience. However, it’s worth noting that the blog post also states that restaurants “do not pay a commission to DoorDash on orders they receive through their Storefront.” 

DoorDash has actually been less awful to restaurants than its third-party competitors during the pandemic. The company waived commission fees for a time independent restaurants when the dining room shutdowns first took place. Still, commission fees are coming back, and offering restaurants their own digital storefronts means those restaurants will be firmly locked into the DoorDash ecosystem when it’s time to pay up.

All of which is to say, read the company’s seemingly altruistic blog post with a magnifying glass in one hand and a dose of healthy skepticism in the other.   

Check out Spoon Plus, our deep dive research and virtual events community.

ChefReady to Launch Ghost Kitchens With a Mom-and-Pop Mentality

Denver, CO-based ChefReady will launch its first ghost kitchen later this summer, in part to help keep restaurants alive that have been impacted by the COVID-19 crisis. According to a press release sent to The Spoon, the facility will open in July in Denver and provide space for 10 restaurants or restaurant concepts wanting to focus specifically on delivery.

Speaking in today’s press release, ChefReady cofounder Nili Malach Poynter said that when the company first examined the ghost kitchen concept, they found that “operate with a ‘churn and burn’ mentality, resulting in an unprofitably high tenant turnover. We decided to create a company that offers the convenience of a ghost kitchen, but with more of a ‘mom and pop’ personalized level of customer service, as well as greater efficiency, and a ‘greener’ footprint.”

Which is something a lot of restaurants are going to need soon.

That the pandemic is wrecking havoc on the restaurant industry is a point that’s starting to become old-hat. Many restaurants, especially independents, have already closed permanently. Many more will in the coming months thanks to the metaphorical train wreck of lost revenue, reduced capacity, upset business models, high rents, and many other factors converging at once on the industry.

Ghost kitchens, meanwhile, have so far been an obvious solution for larger chains that already generate the kind of demand needed to justify the expense of an off-premises-only location. But as restaurants close their doors forever, the concept might also be a way for them to save their business without the extra expense of running a brick-and-mortar location.

For ChefReady, the idea is to provide restaurants a way to keep their doors open without actually having to reopen any actual doors. 

ChefReady will provide restaurants with fully equipped kitchen space they can customize to some degree, as well as guidance on marketing, permits, and other areas of operations. Membership includes integration with third-party delivery providers. As with other ghost kitchens, there is also the benefit of lower overhead costs, since equipment is provided and rent is typically lower due to restaurants using less space. And for any restaurant trying to operate in this pandemic era, ghost kitchens provide the added benefit of not having to worry about the social distance guidelines and crowd control that comes with operating a front of house.

In all likelihood, the pandemic will accelerate the adoption of ghost kitchens, which were already getting popular beforehand. Kitchen United just announced a new facility in Austin, TX. Zuul Kitchens, which opened its first facility in 2019 in SoHo, NYC, recently teamed up with Figure 8 to start a ghost kitchen consulting firm. Equipment manufacturer Middleby is selling out-of-the-box ghost kitchen solutions, and there are plenty others in the space. 

While ChefReady didn’t say it was targeting a specific type of restaurant with its facility, one area that could benefit would be family dining. Those are your full-service restaurants like Applebee’s, Denny’s or the independent equivalents. Full-service restaurants have taken the hardest hit over the last few months in terms of sales declines, and that isn’t likely to change anytime soon. A recent survey found that 66 percent of consumers would not immediately eat in a restaurant dining room once it reopened.

As to whether fine dining restaurants could benefit from ghost kitchens remains to be seen. Food is just one part of the experience of many upscale establishments, and that experience is tough to replicate in a to-go box. For smaller fast causals, family dining joints, and other indies, though, ChefReady’s approach to ghost kitchens might be just what they need to keep the lights on another day. 

COVID Could Usher in a New Trend: Frozen Food as Medicine

It seems that Americans are turning to frozen food during the coronavirus pandemic. Last month, the American Frozen Food Institute (AFFI) reported that sales of frozen food jumped 94 percent in March of 2020 compared to a year before, and continued to rise by 30 percent in April.

Granted, considering the source it’s best to take the report’s numbers with a grain of salt. But this growth actually makes a lot of sense. Frozen food keeps for a long time. Americans are wary of grocery stores and worried about feeding their families, so it follows that they’d stock up on staples that can last for months and be ready when needed.

Curious to see if this was an opportunity for more curated frozen meals, this week I spoke to Christine Day, CEO of healthy frozen meal company Performance Kitchen, about how COVID has affected their sales.

“Every week the volume is picking up,” Day told me. While they had to halt their business with Delta Airlines, for whom they provided some meals for first-class passengers, she said that their online business is up over 200 percent.

Day said that when the pandemic first hit, consumers were stocking up with lots of bulk food. Then there was a phase of over-indulgence: there was “a lot of lasagnas,” she said. Now, Day thinks we’re at a phase when consumers are shifting away from bulk and comfort food to seek out healthier choices.

At the same time, consumers are still looking for convenience. Meal kits can offer that to some degree, but they require preparation and also have a relatively short lifespan in terms of how long it takes for the food to go bad. Frozen meals offer more flexibility. “When you buy a frozen meal you have a choice if your plans change,” said Day.

Performance Kitchen has two branches: Performance Kitchen and Performance Crafted (formerly called Eat Local). Both focus on providing nutritionally balanced frozen meals for specific dietary needs: keto, maternity, vegan, etc. Performance Kitchen makes wholesale meals for sale in 10,000 grocery stores nationally and online. Performance Kitchen Crafted, on the other hand, is a physical store where consumers can come and shop for branded frozen meals. It has six brick and mortar locations in Seattle.

Since COVID has forced those stores to shut their doors, Day said that Eat Local has pivoted to D2C sales and curbside pickup. Before the pandemic they only delivered to the West Coast, but they rolled out national shipping three weeks ago.

Performance Kitchen is not only positioned to tap into the rise in frozen food demand, but also new interest in a burgeoning trend: food as medicine. “People are really focused on immunity health, recognizing that issues like diabetes, hypertension, etc. increase our risk,” Day said. She credited this focus with one of the reasons they were seeing so many more sales during the COVID pandemic.

What’s remains to be seen is if the success of frozen meals, specifically those offering a food as medicine angle, will continue post-coronavirus.

Off-Premises and Outside: Two Tech Companies Have a New Take on the Standard Self-Service Kiosk

Of all the challenges restaurants face right now, this is one of the biggest: being able to serve enough customers to generate some kind of revenue while still keeping everyone safe and socially distant.

Touchscreen technology shared among clientele isn’t the first thing that springs to mind to combat the issue. But two companies, international hardware manufacturer Elo and Swedish software startup Clicksys, have devised a way to make the concept more palatable to wary restaurant customers and help businesses fulfill more orders in the process. Combining their respective technologies, the two companies have created a touchscreen kiosk that allows customers to self-order without ever setting foot inside the restaurant.

Over a Zoom chat this week, Clicksys’ CEO Aleksandar Goga and Sonal Apte, Elo’s VP of Retail and Hospitality Solutions, explained to me how the system works. 

The kiosk uses an open frame capacitative touchscreen monitor that can be installed flush against a windowpane. Because the touchscreen is projected capacitative, it can sense touch even through thick glass, such as a window. That means restaurants can display a kiosk to the outside world without actually putting the machine outside. 

In the restaurant world, one use case for the technology is with Sushishop in Stockholm. The restaurant is one of those small establishments in the middle of the city that holds few tables and normally accommodates a line of about nine people inside waiting for pickup orders. After social distancing guidelines, that meant Sushishop was only allowed to accommodate four people inside — not exactly a booming business model.

The restaurant teamed up with Clicksys and Elo and installed a kiosk against its front window, providing a way for customers to place orders without actually having to go inside.

Mikael Shaaya, the owner of Sushishop, told me over email that when coronavirus first hit, the restaurant was not able to serve any customers because of its inherently limited capacity. “Thanks to Clicksys and Elo, we can handle more guests while still being able to more easily follow the rules of the public health authority,” he wrote. Guests can order and receive their food outside and are “happy they don’t have to crowd into the restaurant.”

A small shop in a city center is one use case for the technology, and a good one. These kiosks could also have a huge impact on restaurants outside dense urban centers, where either drive-thru congestion needs to be alleviated or people would prefer to just order from an outdoor kiosk and then wait in their car for their food. Goga likens it to a more digitized version of Sonic, where customers can park a car, order via the touchscreen, then wait until a staff person brings out their meal.  

For restaurants, another plus is that they don’t need their own digital properties to power the order and pay functions of the kiosk. As we discus a lot, sophisticated mobile apps and order systems a la Starbucks or McDonald’s are financially out of reach for smaller restaurants and even smaller chains. A mom-and-pop store that simply needs a way to efficiently offer takeout orders could install the touchscreen, which would include their logo and branding throughout the user interface. As a bonus, customers would not have to download yet-another app with which to order food. The system simply collects a user’s phone number and sends them a text once the order is ready.

The kiosks haven’t come stateside yet, though they may at some point in the future. Goga said right now the company has its sights set on London, then the wider U.K. for the near-term future.

Of course, all this talk of touchscreens during a pandemic brings up questions of safety and cleanliness. Will customers want to order from a screen 10 people have touched before them, even if through glass?

“What I see here is that the fear of meeting people is bigger than having to touch something,” said Goga. “Better to touch something and be alone than to stand in front of another person.”

Apte added that when it comes to sanitization, social distancing, and the new standards the pandemic has placed on the restaurant industry, there are three Cs to keep in mind. The first is “clean frequently.” “Think about every touchpoint on that journey,” she says. After that, restaurants should “communicate that cleaning” with their customers. Finally, “Allow your customers control.” For example, Sushishop offers a hand sanitizer station next to the kiosk.

Practices like the ones above will be important for restaurants moving forward when it comes to reassuring customers and also offering them alternatives to sitting in the dining room. In the U.S., states have allowed dining rooms to reopen, but at a reduced capacity that’s as low as 25 percent in some cases. Countries like Spain and Italy are allowing some areas to reopen, but again, with reduced capacity and in some cases only outdoor seating. Even a place like Sweden, which did not shut down like other countries, has enacted social distancing guidelines for bars, cafes, and restaurants. Meanwhile, 66 percent of U.S. consumers recently polled said they would not immediately go back to a restaurant once it reopens.

In all likelihood, the practical nature of kiosks in terms of being a digital ordering device will outweigh concerns about safety in the long term. With off-premises orders expected to drive the bulk of restaurant sales over the next decade, restaurants small and large will need to offer some kind of kiosk technology to accommodate spur-of-the moment orders from customers driving by in their cars or passing on the sidewalk outside. And the pandemic has, in Apte’s words, “greatly accelerated digital transformation.” For the hundreds of thousands of restaurants that aren’t digital behemoths like Chipotle or McDonald’s, a kiosk like this one could go a long way in helping them make that transformation.

Report: 66% of Consumers Are Not Ready for Restaurant Dining Rooms

Around 66 percent of consumers said they would not be willing to eat in a restaurant’s dining room immediately, according to new research from Washington State University’s Carson College of Business and covered by RestaurantDive. Another 47 percent said they planned to wait another three months before venturing out to eat. 

Of those surveyed for the report, 21 percent said they would eat in restaurant dining rooms “soon after” they reopen. “Over time, others will join this group of consumers — assuming that there is not a second wave of COVID-19 infections,” Dr. Dogan Gursoy, a professor of Hospitality Business Management at Washington State University, told the Bellingham Herald recently. About 50 percent of respondent said they would wait at least one to three months before eating out. 

The report also found that casual restaurants will be the first type of eating establishment customers will patronize. Think Outback Steakhouse or Applebee’s, or any of the hundreds of thousands of independent sit-down restaurants in the U.S. Well, at least those that have managed to keep the lights on during state-mandated dining room shutdowns. 

Consumers surveyed for the report said that sanitation efforts like masks for servers, hand sanitizer stations, and other visible efforts, like seeing staff clean tables and chairs, will be the most important safety precautions. 

As states reopen, rules, regulations, and practices vary from one to the next in terms of keeping customers safe. All states that have allowed dining rooms to reopen have set rules in place around reduced capacity for customers, with some at 50 percent and some as low as 25. Reservations are being encouraged, even for quick-service chains you’d have never in the past imagined having to book a table for, and many businesses are limiting the size of large parties to between 6 and 10 people. Meanwhile, the National Restaurant Association has thorough guidelines about updated cleaning and sanitizing procedures for restaurants as they start to invite customers back. 

Even so, consumers are wary when it comes to mingling with the outside world again, which means no matter how visible and effective a restaurant’s sanitization strategy is, it needs to also continue its off-premises strategy. Dr. Gursoy recommended having such a strategy in place for the next three to six months, since limited capacity in the dining room will make it next to impossible to turn a profit.

Granted, there’s no guarantee off-premises orders will make a restaurant money either, especially not when it comes to delivery. Add a possible second wave of coronavirus infections to the mix, and it looks like we’re still a long ways off from the restaurant industry having a true recovery. 

Online Order Platform Zuppler Launches a Contactless Order and Pay Package for Restaurants

Online food ordering platform Zuppler today announced a contactless ordering package restaurants can use as they begin to open the front of house under new social distancing guidelines. Called Menu Anywhere On-Premise, the software specifically addresses the need for more flexible, dynamic menus and contactless ordering for dine-in customers. 

Zuppler currently works with about 15,000 restaurants. The Conshohocken, PA-based company’s platform integrates directly with restaurant websites and POS systems, as well as loyalty programs like LevelUp and Punchh.

The company is among those restaurant tech players now focusing on contactless solutions for restaurant dining rooms, most of which now have to operate with reduced capacity, fewer staff, and new standards for social distancing. Those social distancing measures are quickly phasing out things like reusable menus and self-service kiosks, which means more restaurants are now looking for digital options for customers when it comes to browsing menus, ordering food, and paying for it.

“Today’s launch is a natural extension of our current offerings, and is entirely driven by the needs of our clients,” Zuppler’s founder and CEO Shiva Srinivasan said in today’s press release.

Like other Zuppler products, The Menu Anywhere On-Premise tool integrates directly with a restaurant’s main system, including its website and any loyalty programs. Customers can then use their own mobile devices to browse a menu and select items to order. Those orders are automatically sent to the restaurant kitchen, and customers can track the status of their order on their phones as well as pay for their meal. Since Zuppler’s technology is integrated with loyalty programs, customers can earn points from their orders at participating restaurants. 

Restaurant tech companies across the industry are now pivoting to offer bundles of contactless software to restaurants. Presto, CardFree, ConverseNow, and Sevenrooms, among others, all offer some form of contactless order and pay features restaurants can add to their tech stack. While this shift in focus is partially a way to help restaurants reopen their dining rooms, it’s also a necessary move for these companies when it comes to staying relevant in a world that no longer revolves around the restaurant dining room.

Zuppler’s history as an online order platform as well as its existing integrations with POS systems, loyalty programs, delivery services, and services like Google ordering have given the company credibility when it comes to digital ordering in restaurants. Now we’ll see if that translates to the actual dining room as customers slowly but surely go out to eat once more.

‘This Is No Time for Champagne and Caviar.’ One Restaurant Owner on How to Reinvent Fine Dining

The understatement of the year is that independent restaurants are going to have a hard time surviving this pandemic. For those that aren’t already closed, the threat of having to do so looms large.

Irena Stein, owner of Alma Cocina Latina in Baltimore, Maryland, isn’t afraid to face that fact. “What are the chances for us to survive truly? Very little,” she said over the phone recently. 

Like any other full-service restaurant, Alma Cocina Latina was forced to close its doors when the pandemic went full swing in the U.S. But instead of completely shuttering the place, as others have done, Stein has transitioned her fine-dining establishment into a hub for two brand-new areas. “Instead of thinking we’re going to close forever, which is a possibility, we’re asking, ‘How can I transform myself into something else?’” Stein said on the phone. The answer, for now, seems to be half-restaurant for takeout orders, half relief kitchen for those in need. 

Alma Concina Latina has been around for five years now. Prior to the pandemic, the Venezuelan restaurant was better known for serving up squash tartare and high-end arepas than it was for filling to-go boxes. In fact, the restaurant has never, up to now, even considered doing off-premises orders. 

“One of the most important experiences for us to share with our guest is the whole experience,” Stein said, adding that Alma Cocina Latina “is a place that is full of education, it’s a very warm environment, very beautiful, accents of museum-type pieces. So for us, coming into our place is coming into our culture.”

Which, obviously, is impossible to replicate in a plastic to-go container.

But like everyone else, state-mandated dining room closures have forced the restaurant to offer some kind of to-go menu, though in it’s not just a case of offering the existing menu in a box. “From a very very beautiful menu we decided to do a few items from appetizers and the arepa bar.” Since arepas are best eaten immediately after cooking, those that live farther away can order theirs half-baked, then follow instructions on the Alma site for finishing them at home.

Takeout is available Thursday through Sunday from 5 p.m. to 7.30 p.m. Users can call the restaurant to place an order or buy items online directly through the Alma site. 

Offering takeout has given some of the Alma staff work to do, but as is the case with many other restaurants, going takeout-only has meant there’s less need for a full staff. Rather than furlough or fire them, Stein and her team started a relief kitchen. 

That’s meant partnering with an organization called Mera Kitchen Collective, which provides a place for refugee chefs to cook. Since Mera was mostly a catering organization before the pandemic, it needed new business, and the two entities teamed up to provide meals to the Baltimore community. Not long after, José Andrés’ World Central Kitchen rang up and offered to sponsor the food they were giving away. Stein told me that as of now, Alma and Mera’s combined efforts, along with the sponsorship, allow them to give away about 450 meals per day. Recipients are individuals with limited access to food who would, under any other circumstance, never have a chance at tasting Alma’s food. 

She noted that Baltimore has a lot of food deserts, and that down the line, she would like to do more work in the area of food justice, such as buying excess food from farmers and redistributing it around the community. 

“I would like to transform part of Alama’s future activities into [helping] food professionals that support different food policies, and then provide the food, really really good food to them,” she said.

As for the restaurant itself, Stein says it will keep doing takeout for now, while they are still in survival mode. She is quick to add, however, that she wants no part in a future that is only takeout. Hence, looking for ways Alma can reinvent the kind of food business it is.

The pandemic has been especially hard on full-service restaurants, and even tougher on fine-dining ones, that, like Alma, have never had a need for any strategy other than dine-in service. But with reduced capacity mandates, stricter guidelines, and decimated savings accounts, the recent reopenings have made abundantly clear that the fine dining industry isnt’ going to boune back from the pandemic full force anytime soon. Possibly never.

“We were a restaurant and we were a beautiful restaurant. That past isn’t coming back anytime soon. Why not think in reimagining the future?”

Stein has taken that as her cue to rethink the point of her business — what full-service restaurants are and, more importantly, what they can do for the larger community. No, that attitude doesn’t lead to immediate profits, or even survival, but it hints at yet-another avenue restaurants can take to let the world know they are out there and still serving up good food.

Or as Stein says, “This is no time for champagne and caviar. Food is food, so let’s work with that.”

Hold the Phone. Soon it Will Be Your Restaurant’s Menu

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A couple of years ago I came across a restaurant in Dallas, Texas that featured a menu written entirely in emojis. It was unexpected and creative, yet clear enough that a server didn’t have to come over and re-explain everything on the page.

I’m not (necessarily) advocating we battle the current restaurant industry fallout with emoji menus, but maybe we could use some of that outside-the-box thinking when it comes to revising menu formats to fit the new reality we live in. 

Since reusable menus are basically germ repositories, it’s no surprise they’re out now that dining rooms are reopening. The CDC’s recently released guidelines for reopening suggest restaurants “avoid using or sharing items such as menus” and to “instead use disposable or digital menus. . .” The National Restaurant Association’s guidelines tell restaurants to “make technology your friend” and suggest mobile ordering, and every other restaurant tech company that contacts me these days is offering up some form of digital menu for restaurants to integrate into their operations. 

A lot of restaurants will definitely start out by offering simple disposable menus. Paper is cheaper than software most of the time, and typing up and printing out a menu is faster than onboarding your business to a new tech solution.

Over time, though, that could change. As more emphasis gets placed on digital ordering for everyone, we’ll access more restaurant menus through our own phones and mobile devices. That opens up a whole world of possibilities in terms of what restaurants could one day offer on their menus beyond just the food items themselves.

Just a few examples: Menus could provide in-depth information the ingredients in a dish, like where that cilantro came from and how many months the apple traveled before it hit your plate. Menus might also include ratings from other customers, and Amazon-esque “you might also like” recommendations could show up on the screen. Maybe you could dictate the portion size you want, thereby reducing food waste.

With AI making its way into restaurant tech more and and more, restaurants could also build dynamic pricing into menus, based on time of day, foot traffic, weather, and offer coupons and promotional offers in real time. And sure, if someone really wanted to, an emoji menu would probably fly right now in more than a few places.

Most of these things exist already, though they’re not widespread and some are still in conceptual stages. The massive overhaul of the restaurant menu is a chance to start bringing those disparate pieces together to revamp the way we order our food.

Kitchen United Is Open for Business in Austin

One effect of this whole pandemic is that we’ve seen an uptick in to-go orders, and that trend won’t subside anytime soon. That makes now a good time for restaurants — some of them, at least — to consider adding a ghost kitchen to their operations. 

Those in Austin, TX can add Kitchen United to their list of choices when it comes to choosing a facility. The company, which provides ghost kitchen infrastructure (space, equipment, etc.) to restaurants announced this week its new location near the University of Texas is open for business. 

A number of restaurant chains have either already moved into the space or plan to do so in the coming weeks. Kitchen United has also allocated one of the kitchens in the new space to Keep Austin Fed, a nonprofit that gathers surplus food from commercial kitchens and distributes it to charities. As part of the deal, Keep Austin Fed will be able to “rescue” food from restaurants with kitchen operations inside the new KU facility. 

A press released emailed to The Spoon notes that “additional kitchen space is currently available” for restaurants that want to expand their off-premises operations. On that note, a word of advice for restaurants: make sure your restaurant is actually in need of a ghost kitchen before signing up with one. Kitchen United’s own CEO, Jim Collins, told me recently that restaurants need a certain amount of customer demand in order for the economics of a ghost kitchen to make sense. It’s not a small demand, either. In times like these, where the future of all restaurants is uncertain and what little money there is needs to be spent carefully, it pays to exercise some caution, even when it comes to an enticing new trend like ghost kitchens. 

Los Angeles Moves to Cap Third-Party Delivery Commission Fees

Behold, more fee caps for third-party delivery companies. This week, the Los Angeles City Council voted 14–0 to ask attorneys to draft a law that caps the commission fees delivery services charge restaurants at 15 percent. “Why should restaurants, and their customers, be put in a position to subsidize delivery app companies? We need to level the playing field,” Councilman Mitch O’Farrell told the Los Angeles Times.

This week’s proposal would also require that 100 percent of the tips customers leave on delivery orders through these apps go directly to the driver, which is pretty standard nowadays but caused some ruckus in the not-so-distant past. The fee caps would end 90 days after Los Angeles lifts its dining room closures. 

Needless to say, the move — which several other cities have already made — is not popular with delivery companies. Postmates, which is LA’s most popular third-party food delivery service, said governments setting a price on fees threatens jobs and creates “a false choice between local restaurants and the delivery network companies that support them.” The service wants instead to have a fee charged in delivery orders that would assist restaurants. That in turn would translate to yet-another fee for the customer, and be yet-another way in which restaurant food delivery services will suggest/try anything to avoid having to shoulder some of the burden the pandemic has brought on the restaurant industry.

As restaurants slowly reopen and the industry starts to adjust to its new normal, now we’ll begin to see if fee caps actually make a difference for struggling restaurants, and if they are here to stay for the long run.

How Will the Black Swan of COVID-19 Impact Data Used in AI-Based Flavor Prediction?

In order to build an effective artificial intelligence (AI) platform, you need good data. Data feeds the algorithms that go into the AI; the better your data the better your AI system will function.

In the food tech world, there are a number of startups like Spoonshot, Analytical Flavor Systems and Tastewise have built intricate AI platforms that use tons of different data to help big CPG companies identify and predict culinary and flavor trends.

But what happens when a big catastrophic black swan event occurs like, oh, I don’t know, a global pandemic, which changes the eating and buying patterns of almost everyone on the planet all at once?

For instance. In February, it was easy to buy flour and yeast at your local grocery store. Fast forward to March and suddenly store shelves were empty and you had to resort to making your own yeast. Around that same time, instead of pictures of fancy restaurant meals, social media accounts were flooded with pictures of homemade bread.

Food predicting AI systems uses data points like restaurant menus, social media mentions and consumer purchasing patterns to determine future trends. But everyone didn’t start making sourdough bread at home because it was suddenly fashionable. It was because everyone was stuck inside.

How then, will AI systems handle this shock to the data system? Sheltering in place won’t last forever (knocks on wood), and who knows how long people will actually make their own bread. The popularity of it now is an aberration, does this mean that the data surrounding it is no good? Is bread making today indicative of anything other being bored or does it foretell a bigger trend?

To get a better sense I reached out to both SpoonShot and Analytical Flavor Systems to see how they are incorporating this massive disruption to our eating patterns into their own prediction process — and got two very different answers.

SpoonShot’s AI uses more than 3,000 sources across 22 data sets including menu, social and pattern data. Kishan Vasani, Co-Founder & CEO of SpoonShot, didn’t seem to think that COVID-19-induced eating changes would impact his company’s predictive capabilities at all. “Algorithms shouldn’t be overly sensitive to black swan data,” he said, “If you think about it, AI essentially means having enough relevant and appropriate data to process and predict.”

In other words, if your AI system is worth its salt, you should be able to weather big changes like this. “Everything goes back to the data and data sources,” Vasani said, “Menu data is significantly slowed down, but that’s compensated for with cooking platforms.”

On the other hand Jason Cohen, Founder and CEO of Analytical Flavor Systems, thinks the pandemic and subsequent lockdowns are a big deal. “Companies will say, ‘no no no, we can make predictions,'” Cohen said, “I do not believe that. This is the most rapid and intense change to consumer behavior since World War II.”

Cohen believes that with quarantines already in place for more than 60 days, new habits will definitely have formed. People will still be baking bread at home. What’s important is to meet this new data where it lives, literally.

Up until the pandemic, Analytical Flavor Systems used a 50 person panel of tasters as part of its data collection. This panel would come into the office to try various on-market foods. But since lockdown, the company has moved entirely to at-home testing. “In addition to CPG products, we are asking them to taste profile their homemade bread and soups,” Cohen said, “The point is we need to see those flavors, aromas and textures they are exposing themselves to.”

Cohen doesn’t think that past data is invalidated, but rather that data needs to be collected before during and after this crisis. Something which I think Vasani would agree with.

The thing about predictions now is that we won’t know if they were accurate for a long time. SpoonShot looks out 18 months and is even considering pushing that out to two years.

Hopefully we’ll be able to eat bread at a restaurant again by then.

CardFree’s Streamlined Platform Hints at the Restaurant Tech Stack of the Future

We’ve said it before, we’ll say it again: in today’s pandemic-stricken restaurant industry, restaurant tech companies have to fight hard to stay relevant, and only those solutions that can help restaurants make their digital operations truly efficient will be left once the fallout is over.

CardFree, a company based in San Francisco and something of a restaurant tech vet, is hoping to make the transition to digital easier for restaurants. The company makes an all-in-one mobile merchant platform that integrates digital ordering and payments, coupons, and loyalty programs into a restaurant’s existing setup. It also offers a pay-at-the-table function that uses a customer’s own mobile device, rather than a tabletop kiosk (aka germ repository). It also recently added a new way for customers to process payments — not through any earth-shattering new technology but via some good old-fashioned SMS messaging with its new text-to-pay function.

The company was founded in 2012, a time when the concept of mobile payments via a smartphone was first gaining attention and many wondered if the credit card would disappear entirely. It didn’t. In fact, CardFree’s CEO and cofounder Jon Squire told me over the phone this week that the company saw “early resistance” even to pay-at-the-table concepts, where a user processed the payment themselves instead of handing over a credit card.

As global health crises do, though, the COVID-19 pandemic changed everything. Digital orders were up 63 percent in March, according to NPD Group, and one recent survey found that 73 percent of consumers ordering takeout and delivery said they would be more inclined to get takeout (over delivery) if the experience were contactless. Meanwhile, the National Restaurant Association’s restaurant reopening guidelines clearly state that “Contactless payment systems, automated ordering systems, mobile ordering apps, website updates and simple texts can help you to communicate and conduct business with reduced need for close contact.”

CardFree’s platform is one of many out there offering tools to make the restaurant experience more contactless. A restaurant can choose one or more of the technologies the company offers (mobile ordering, payments, etc.) and add to the stack over time. Squire said that of all the technologies out there, mobile ordering itself is probably the most important one for restaurants to add right now, though in terms of a solution, “You’re going to want something you can expand.”

As I mentioned above, that expansion might include some SMS messaging. CardFree has launched what it calls a pay-to-text feature, where customers call in a to-go order and can receive a link via SMS to pay for their meal. This is less cumbersome than reading a credit card number over the phone, and more sanitary than passing one between customer and cashier at the actual restaurant.

“Almost all the folks we’re working with are taking the person’s cell phone number as part of the order process,” says Squire. Once the phone number hits CardFree’s system (which is integrated with the restaurant POS), the user receives a text with a link they can click through to pay using Apple or Google Pay or their credit card:

Squire said that of the restaurants he’s talked to, many still see “about 60 percent” of orders placed ahead of time come via a phone call to the restaurant, not placed through a digital property like a mobile app. Finding a way to make the telephone experience more contactless from start to finish will be important going forward. That said, not many restaurant tech solutions pushing “contactless” bundles currently offer any kind of feature that addresses phone orders. That gives CardFree something of a leading edge here.

Squire doesn’t necessarily believe the pandemic and seismic shifts in the restaurant biz will render the credit card obsolete, as some have suggested. Of going “card free,” he said “Doing it’s our name and we’ve been doing it for 10 years and [credit cards] still exist. I’m reticent to say they’ll go away.” 

Regardless, restaurants will need to go more digital, even if they’re accepting credit cards. And to help make that possible for cash-strapped businesses that are currently lucky to keep the lights on, CardFree has been giving away its products for free for small-to mid-sized independent restaurants. While there is technically a three-month time stamp on the free period, Squire suggests that’s a fluid deadline where certain restaurants are concerned. For CardFree, which has historically worked with enterprise-level brands, this is a way of helping the whole restaurant industry stay afloat, not just mainstream chains.

As Squire said, “It’s been helpful to know [we’re] doing something to push this in the right direction.”

Pico, the Mini Indoor Garden that Can Grow Herbs and Tomatoes, Busts Through Kickstarter Goal

With quarantine keeping us all at home, people are growing plants both for mental health and as a food source. But even if the enthusiasm is there, there are still plenty of pitfalls to accidentally kill your plant friends — overwatering, underwatering, not enough light, etc.

For those reasons, plus a growing (ha!) interest in food sovereignty, coronavirus could actually present a real market opportunity for smart gardens; automated indoor grow systems to manage the health of your plants. But, as Mike Wolf noted in his piece last month, one big hurdle standing in smart gardens’ way is their cost. The systems can range in price from hundreds to even thousands of dollars.

That’s where Pico, a new automated indoor garden currently making a splash on Kickstarter, could really distinguish itself. Early Backers can secure a Pico for only $32. The intended MSRP is $45.

When we say Pico made a splash on Kickstarter, we’re not exaggerating: at the time of writing the company has raised $1.3 million on Kickstarter (its initial goal was $10,000). The small self-contained grow system that can be affixed to walls and features an LED light mounted on an adjustable arm, which can be moved up as plants grow. It can also self-water, provided someone fills up its tank once a week.

Like most indoor garden systems, Pico is limited in terms of what plants can grow. The Kickstarter says it can be used for decorative plants, like succulents, as well as to grow herbs and leafy greens. It even claims it can grow cherry tomatoes and chili peppers, though its small size could limit the amount.

Photo: Pico’s grow system, by Altifarm

Pico may be extremely affordable, but it doesn’t have quite the same stramlined user experience as some of the pricier home gardens. For one, Pico has to be plugged in to work. It’s powered with a USB Type-C cable, so it can plug into a phone or computer charger. Pico comes with a 3-meter long cable with magnetic organizer loops to more easily route around kitchen appliances, so that helps. But it still seems like kind of a pain to set up. That said, Pico is small enough to fit pretty much anywhere, and can also be mounted on walls to position it closer to a wall outlet. You can also connect three Picos together at a time and power them with the same charging cable.

The Pico price only includes the device. Users have to add in their own soil and seeds. To be fair, that’s not a huge lift, but it does mean the Pico isn’t a straight plug-and-grow option, like Aerofarm or Click & Grow.

It also isn’t 100 percent automated. Users have to manually turn the LED light on and off to imitate the rise and fall of the sun. They can also purchase a timer to automate the process for an additional cost.

Altifarm, the company behind Pico, has some experience making automated grow systems. They’ve already launched Herbstation, an indoor farm that was also funded by Kickstarter. The company has just concluded fulfillment of Herbstation preorders after a self-admitted “share of delays, mixups, and drama.” Buyer beware.

Photo: Altifarm

As of now, Pico is slated to begin shipping in May/June, though a small disclaimer at the bottom of the campaign notes that that could be delayed due to stay at home orders. Buying a product off a crowdfunding site is always a risk — especially now, when COVID-19 is disrupting manufacturing supply chains across the globe. However, Altifarm states that since Pico is their third global product launch, they’ve learned how to efficiently get a hardware product to market.

Despite the risks, Pico couldn’t be hitting the market at a more opportune time. With COVID nudging consumers to be more aware of where their food comes from — and people consequently gaining an interest in food sovereignty — home gardening is blooming (okay, last plant pun).

Pico’s stellar Kickstarter campaign illustrates just how enthusiastic consumers are about finding ways to easily grow their own food at home. Now we’ll have to see if they can follow through to make all those backers happy home gardeners.