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Daily news and analysis about the food tech revolution

Future of Grocery

On Eve of IPO, Instacart Bolsters Grocery Tech Platform, Including New Features For Caper Smart Shopping Cart

Today, Instacart rolled out a slew of new updates to its grocery technology platform, updating capabilities across its white label turnkey digital commerce platform, its AI-powered search capabilities, and new features for its Caper Cart smart shopping cart. The new feature-set rollout marks further integration of the string of acquisitions the company has made over the past couple of years as it refashions itself from a pioneering personal-shopper service to a technology arms dealer for grocery retailers.

One of the key upgrades was around the company’s white-label commerce platform, Instacart Storefront. The company, which counts Costco among others as customers for the Storefront platform, gives access to Instacart’s machine learning technology, access to its white label mobile app, and a variety of other features. The company also talked up its ability to connect the online and app experience to in-store shopping via list sorting by aisle, highlighting in-store promotions and discounts, and enabling customers to use store loyalty cards.

This spring, Instacart rolled out generative AI conversational search via its website and now has added it to the in-store experience via the app. According to Instacart, the app will give customers access its ChatGPT integration via search, alongside Instacart’s own product data and proprietary AI models.

And finally, the company announced a slew of upgrades for its Caper Cart smart shopping cart. The new updates will allow customers to order made-to-order items like deli sandwiches or custom cakes directly from their Caper Cart, and will also enable retailers to offer incentives like coupons and points for completing actions like adding certain items to a cart or trying the Caper Cart for the first time. The company also is rolling out a Caper Cart dock, a permanent charging and storage place for Caper Carts.

These moves are further evidence of a strategic pivot I wrote about two years ago, in which Instacart transitions itself into a provider of technology solutions for grocery retailers:

With the move, Instacart adds another tool to a growing arsenal of e-commerce and in-store technology solutions targeted towards grocery providers at a time many are beginning to question their relationship with the company.

… as Instacart grows its enterprise technology solutions, I expect we’ll increasingly see its flagship shopper service decoupled from its technology as it looks to serve larger retailers who want greater control over the customer relationship. Since the start of the pandemic, many grocery retailers have started to roll out and standardize around their delivery services, which means a fast-growing market for technology solutions. My guess is Instacart is anticipating this as it rolls up some of the best-in-class independent solution providers as it prepares for an IPO soon.

And, right on time, the new product suite comes just as the company is set to price its IPO as soon as next week.

Robomart Debuts Fully Autonomous Mobile Grocery Store Concept As It Announces $2M Seed Round

Robomart, the company that introduced the store-hailing concept at CES in 2019 and started rolling out its first pilot store last year, announced a new model for its mobile store concept this week with the Robomart Haven. The Haven, which will join the first-generation Robomart (now named Oasis), will be available for retail partners starting in 2025.

Unlike the Oasis, which targets ice cream purveyors, restaurants, and cafes, the Haven resembles a convenience store on wheels. According to CEO Ali Ahmed, the Haven can stock over 300 separate SKUs and hold thousands of individual products for sale. The Haven will also act as a small walk-in mobile store, allowing customers to walk inside and shop.

And unlike the Oasis – which are retrofitted vans with drivers to pilot them – Ahmed says that the Havens will be fully autonomous. Spoon readers might remember that the Oasis (then just called Robomart) was initially intended to be a fully autonomous vehicle, but at some point, the company realized building a fully autonomous vehicle to carry its retail storefront was a lot to bite off for a first product. So instead, they chose to use drivers for their first version of the mobile store and create a fully app-controlled shopping experience (the drivers don’t interact with the customers, according to Ahmed).

But with the Haven, the plan is to make it fully autonomous, according to Ahmed.

“The Haven will not be a retrofitted van with a driver cabin,” Ahmed told The Spoon. “It will be a fully driverless offering that gives us the ability to retrofit the entire space inside to serve our customers.

Ahmed says that the company still doesn’t plan to be “an automobile company,” – meaning they still have no plans to make their own car – but instead plan to work with various automakers to convert an automobile into a Robomart Haven.

With a bigger footprint, Ahmed says future partners will be able to entirely white label and customize their Haven and will be able to have multiple types of food storage (ambient temperature, frozen, cold, or heated) within the vehicle. This differs from the Oasis, which only offers one kind of food storage (such as frozen for its ice cream partner Ben & Jerry’s).

The news of the Haven comes alongside the announcement of the company’s seed funding round of $2 million led by W Ventures with Wasabi Ventures, SOSV, HAX, and Hustle Fund, among others participating. The funding is a vote of confidence for a company that has shown significant traction over the past year, inking deals with seven partners and having a total commitment as of this week for 106 Oasis mobile storefronts.

So far, those storefronts have only been pilots, but Ahmed says they will soon be fully commercial rollouts. While he wouldn’t commit to giving a specific date, Ahmed says that the post-pilot Oasis machines will be out this year, and they will start taking orders for new ones next year. The Haven, which will roll out sometime in 2025, is also open for orders.

Instacart’s AI-Powered Shopping Cart Arrives at ShopRite and Fairway Market

Today Instacart announced that ShopRite in Spotswood, New Jersey, and Fairway Market in Kips Bay, Manhattan are the first two locations to deploy the company’s latest generation smart shopping cart.

The new Caper Cart, which the company announced last September, is the third generation of the AI-powered smart shopping cart platform and the first version of the cart built entirely on the watch of Instacart, which acquired Caper AI (the startup behind the Caper Cart) in October of 2021.

The updated Caper Cart has scales, sensors, touchscreens, and computer vision to enable self-checkout by the customer. Despite the added features, it is slimmer and lighter than the previous version and has 65% more capacity. Perhaps most important for grocers, the new cart system comes with stacked charging, allowing them to charge batches of carts at once and eliminating the need to charge carts individually or swap out batteries.

From the release:

To get started, customers at the ShopRite of Spotswood and the Fairway Market in New York City can grab a Caper Cart at the front end of the store. Powered by AI and computer vision technology, the Caper Cart recognizes and scans items as they are placed in the Cart, allowing customers to easily stay on budget with a running total shown on the screen. To checkout, customers simply scan the barcode displayed on the Cart’s screen at the store’s self-checkout area.

Instacart’s win with Wakefern Food Corp (a retailer-owned cooperative that includes ShopRite and Fairway Market) comes as its competitors in the smart shopping cart space continue to move forward. In January, smart cart startup Flow announced they’d inked a thousand shopping cart commitment from German retailer Expresso. A month later, Shopic announced they’d locked down a deal for two thousand smart carts with Israel-based grocery chain Shufersal. Stateside, Amazon has deployed its Dash cart to numerous locations.

Not all startups in the space have found the road easy, however. Seattle-based Veeve recently announced it was pivoting towards becoming an extension of grocery retailer media networks, using its in-store shopping cart add-ons as yet another digital screen to offer up promotions and ads to in-store shoppers.

According to Instacart, the carts are available at the ShopRite of Spotswood and will soon be introduced at the Fairway Market in Manhattan.

The Instacart Caper Cart Shopping Cart

Israel’s Brevel and Vgarden Team Up to Add Taste to the Alt.Cheese Market

Vegans would agree that cheese is one of the more difficult foods to put aside when entering the plant-based world. A decade ago, vegan cheese options were lacking, and even though the choices have skyrocketed, finding a smoked gouda cheddar. Mozzarella, or provolone’s taste closely approximates its dairy counterpart, has been challenging. Yes, some smaller artisan brands do a respectable job, but finding a creamy, melty vegan cheese that nails taste and texture is a tall order.

Israel-based Brevel is teaming up with plant-based food manufacturer Vgarden to tackle the cheese challenge head-on. In a press release ballyhooing the new partnership, the companies believe the combination of Brevel’s algae-based microprotein and Vgarden’s production exercise will yield a top-notch product.

In an interview with The Spoon, Eyal  Adut, Chief of Marketing and Business Development at Vgarden, and Yonatan Golan, Co-founder and CEO at Brevel, discussed how the two companies would change the face of non-dairy cheese.

What protein is Vgarden using now, and how will Brevel’s algae-based alternative change the product?

Adut: Currently, Vgarden’s meat and fish alternatives contain high levels of pea or wheat protein. The challenge with these widely used plant-based proteins is in mild-tasting products such as cheese when a certain aftertaste is notable in these products when using those proteins. This fact, combined with Vgarden’s cheeses being allergens free (our products do not contain nuts, oats, soy, etc..), creates the situation that most of our plant-based cheeses are high in calcium, fiber and other nutrients yet contain no protein.   We   have   successfully developed cheddar and parmesan cheese with 10% pea protein, which was possible due to the relatively strong flavor of these cheeses

Vgarden intends that all of our cheeses will contain plant-based proteins, and that is why Brevel’s protein,  being taste and color neutral,   can provide us with the required solution for mild-tasting cheeses.

Golan: In terms of functionality – Brevel tries to be as inert as possible – increasing the protein of Vgarden’s cheeses without changing taste, color, or texture. Brevel has been described as a “ghost protein” – it increases protein content without noticing it is there

Will Brevel’s product be used for more than cheese, given Vgarden’s product line?

Adut: Vgarden is constantly researching novel ingredients and will continue to use other plant-based proteins for its meat and fish alternatives, as these serve different purposes, such as texture. The main challenges for novel ingredients in the plant-based industry remain taste, cost, and scale. As more consumers demand solutions for highly nutritious products, we are working with the industry to scale up novel ingredients. Vgarden’s goal is to provide healthy plant-based foods at price parity with the   animal-based   alternative, and   that   is   what   will   drive gardens ingredients choices in the future

Any chance of moving into the B2C space?

Adut: Vgarden has been active in the Israeli B2C space for nearly a decade under the Mahu Mashu™   brand, and its products are being sold in most retail stores in Australia under other brands (powered by Vgarden). Vgarden recently announced its joint venture with Cale  &   Daughters and established garden Australia, which will manufacture locally-made products for retail and food service in Australia. We are aiming to occupy any white spaces in the worldwide market with the right partners on board

What specific cheeses will Vgarden make? More of its hard cheeses and soft cheeses?   Are there certain cheeses better suited for Brevel’s protein?

Adut: That is something Vgarden is exploring and researching. The Brevel protein shows promising qualities, and we hope to incorporate it in all of our cheeses. Vgarden has developed prototypes of mozzarella and cheddar with previous versions of Brevel’s protein, which taste groups received very well.

How will you enter the U.S. market? Any chance for direct-to-consumer?

Adut: Vgarden recently announced it had formed a presence in the U.S.; Vgarden carried out thorough research of the plant-based market in the U.S. and developed its penetration strategy.   Vgarden is   currently under negotiations with some of the leading sales and distribution companies in the U.S. food sector to be able to provide for any future and current demand for Vgarden’s plant-based offerings

The Weekly Spoon: Electrolux’s Kitchen of the Future & Taco Bell’s Reimagined Restaurant

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Electrolux Launches GRO, a Kitchen System Designed to Encourage More Sustainable Eating

Can a kitchen’s design help us eat more sustainable, plant-forward diets?

Swedish appliance manufacturer Electrolux thinks the answer is yes and, to that end, has launched an ambitious new kitchen system concept to help us get there.

Called GRO, the new system is comprised of a collection of interconnected modules that utilize sensors and AI to provide personalized eating and nutrition recommendations. According to the company, the system was designed around insights derived from behavioral science research and is intended to help encourage more sustainable eating behavior based on recommendations from the EAT-Lancet report for planetary health. The company will debut the new system at this week’s EuroCucina conference.

“How can a thoughtful kitchen slowly nudge you to more sustainable choices,” asks Tove Chevally, the head of Electrolux Innovation Hub, in an intro video to the GRO system. “To make the most of what you have, to buy smarter, and eat more diverse?

To see a video of the new GRO and to read the full story, head here.

Do you have the next big idea for the future of food & cooking? Apply to tell your story at SKS INVENT!

Taco Bell’s Vision of the Future Includes High-Tech Dumbwaiters & Lots of Drive-Thru Lanes

I’ve always been fascinated with dumbwaiters. An elevator built specifically to deliver food between floors of a building, the dumbwaiter is an idea that is both ridiculous and fascinating.

And while I can’t be sure that someone like Donald Trump or Jeff Bezos doesn’t have dumbwaiters built into their homes (though Bezos would probably prefer robots and Trump manservants he could yell at), what I am sure of is the dumbwaiter has, for the most part, largely gone extinct as part of modern life.

Until now. That’s because Taco Bell sees them as a potentially integral part of their restaurant of the future. Called Taco Bell Defy, the taco chain’s new restaurant concept includes an elevated restaurant with multiple drive-thru lanes, food lifts, and a lot of digital integrations.

While I wouldn’t, unlike others, claim this new concept possibly “the most ambitious” prototype in restaurant history, I would say it makes a whole lot of sense for a restaurant chain that does most of its business through a drive-thru. While many chains have developed drive-thrus that have multiple order lines, the choke point always comes later when cars zip-up into a single line to get their food. By spreading out the hand-off of food to four lines, the choke point of a single window for food handover is eliminated.

You can read the full post here. 

Smart Kitchen

Meet Celcy, a Countertop Oven With a Built-In Freezer That Will Cook Meals For You

Say you’re leaving for work and want to come home to a fully cooked meal? Or better yet, you want to line up a work week’s worth of meals and just want them prepared when you get home?

You might be a good candidate for the Celcy, an autonomous cooking appliance that combines a countertop oven with a freezer that stores the meals until ready for cooking.

The Celcy, which is currently in development, will store up to four meals in a freezer. Cooking can be rescheduled via an app or on-demand via request. When it’s time to cook, the meal is shuttled from the freezer compartment on the left side into the cooking compartment side on the right. A built-in elevator lifts and deposits the frozen meal in the top upper right cooking chamber where it is cooked for consumption.

You can read the full post here. 

Food Retail Tech

Circle K Planning To Deploy Seven Thousand AI-Powered Self-Checkout Machines

Mashgin, a maker of computer-vision-based self-checkout machines, announced today it has signed a deal with Circle K parent company Couche-Tard to deploy seven thousand self-checkout machines at the convenience store chain over the next three years.

The move follows the initial deployment of Mashgin systems at nearly 500 Circle K stores across the United States and Sweden since 2020. The move by the second-largest convenience store chain in North America with almost seven thousand stores will represent one of the largest ever deployments of self-checkout systems to date.

For Mashgin, the deal represents its biggest customer win yet and is yet another sign of why the company was able to recently raise a $62.5M Series B round at an impressive $1.5 billion valuation. The move represents a 700% total increase in deployments over its current installed base.

The Mashgin self-checkout system is installed at the checkout counter and enables customer checkouts without scanning barcodes. As seen in the video interview from CES in January, customers can essentially toss their items onto the small checkout pad, and the system will automatically recognize and tabulate the products.

To read the full story, head here.

Future Food

Cocuus Raises €2.5M to Scale Industrial 3D Food Printing for Plant & Cell-Based Meat Analogs

According to a release sent to The Spoon, 3D food printing startup Cocuus has raised €2.5 Million in a Pre-Series A funding round to scale up its proprietary 3D printing technology platform for plant-based and cell-cultured meat analogs. The round was led by Big Idea Ventures, with participation by Cargill Ventures, Eatable Adventures, and Tech Transfer UPV.

Founded in 2017, the Spanish startup has developed a toolbox of different 3D printing technologies under its Mimethica platform to enable the printing of different types of foods. These include Softmimic, a technology targeted at hospitals and eldercare facilities that transforms purees into dishes that look like real food (think of a vegetable or meat puree shaped into a “steak”), LEVELUP, an inkjet printing technology that prints images on drinks like coffee or beer (like Ripples), and LASERGLOW, a laser printer platform that engraves imagery onto food.

Read the full post at here.

SCiFi Foods Raises $22M With Andreessen Horowitz’s First Investment in Cultivated Meat

SCiFi Foods, a Bay Area-based food tech startup, announced that it has raised a $22 million Series A round led by Andreessen Horowitz (a16z), making it a16z’s first investment in the growing cultivated meat market. The company, formerly known as Artemys Foods, also announced that it will be adding a new board member, Myra Pasek, the General Counsel of IronOx, who will be utilizing her expertise from Tesla and Impossible Foods to help SCiFi Foods bring its novel plant-based and cultivated meat hybrid through regulatory approval to the market. 

The new funding raises SCiFi Foods’ total funding to $29 million and will primarily be used to scale R&D efforts, build out the leadership team, and market the company. 

The Spoon sat down with CEO and co-founder, Joshua March, to learn more about SCiFi Foods’ new name, a hybrid meat product, and what it looks like to raise funding from one of the most famous venture capital firms during a recession.

Read the full interview with Joshua March here.

Food Robots

Xook Raises $1.3 Million to Roll Out Robotic ‘Food Courts in a Box’ in The US

If you’ve ever visited a cafeteria at a tech giant like Google or Facebook, you probably found that the food is just as tasty (or tastier) and often better for you than what you might order at a corner restaurant or make in your own kitchen.

But according to Xook CEO Raja Natarajan, this kind of access to an abundance of tasty, healthy, and free food is more the exception than the rule for US office workers. This is very different from countries like India, said Natarajan, where most corporate employers provide access to cafeterias stocked with food options for employees. This is why, after trialing a prototype for what he and cofounder Ratul Roy describe as a “food court in a box” in Bangalore, they are eyeing the US for the rollout of their robotic kiosk.

“In countries with high labor costs and high food costs, it is very hard to offer this kind of experience unless it comes with automation,” Natarajan told The Spoon in a recent interview.

To read the full story, click here!

Mill It Farms Finds A Plant-Based Whitespace in Alt-Buttermilk

As the name suggests, buttermilk was made from the cultured cream leftover from the butter-making process. Was, being the keyword. With little sacrifice in its taste, modern buttermilk is made through a fermentation process in which cultures are added to low-fat or whole-fat milk. The result is a versatile product that is not only a popular beverage but a key ingredient in salad dressings, baked goods, pancakes, and a laundry list of other food.

The brain trust at Mill It Farms with an accent on brains, blended art, and science to create plant-based, vegan-friendly buttermilk that uses the fermentation of ancient grains to create a standalone beverage and salad dressing line. Mill It Farms Bill Myers, a food scientist who combines practical knowledge with keen market awareness, has taken on the challenge of developing a buttermilk substitute with a universal appeal.

Bill Myers’s dad, a food scientist, was developing a plant-based yogurt for Califia Farms when the two men realized buttermilk represented a significant whitespace in the plant-based market. “It’s like a little bit crazy that no one’s done this yet,” Myers told The Spoon in a recent interview.” With all the plant-based growth, there hasn’t been buttermilk (especially given) how many things buttermilk goes into.”

Aside from the success Mill It has found with offering buttermilk as a standalone beverage, it has a role in the three salad dressings the company provides. A Classic Ranch, Creamy Italian, and Thousand Islands are emerging as competitors to long-standing brands such as Follow Your Heart and Daiya, which contain sugar, cultured dextrose, and natural flavors.

Myers points out that the aim of vegan products, such as salad dressings, that claim to offer clean, healthy alternatives often fall short. “A lot of the early plant-based dressings would take out buttermilk and replace it with hydrogenated oils high in calories and high in fat.”

Myers adds, “I think that’s one of the biggest problems in the plant-based space right now is, you know, people who want to eat plant-based typically are people who are trying to eat clean and trying to eat healthily. They also are trying to eat fewer calories because they’re really kind of monitoring their diet. But a lot of the early like alternatives in the space is high in calories, high in fat, and high in sugar”

To create a sustainable substitute for dairy, Myers went back to a college food science project involving baking and landed on ancient grains such as millet and sorghum. “With ancient grains, there’s a lot of benefits. One is that there are much more sustainable, and they can grow in arid climates. And so it makes sourcing a lot more efficient. “Our costs are lower because they don’t require as many resources, but it also allows it’s also a lot better for the planet.”

Grains also work well as a fermentation substrate, Myers said. With the proper fermentation process, the resulting buttermilk replicates the taste, consistency, and acidity of products made from a dairy source.

MIll It Farms’ vegan buttermilk and buttermilk dressings are now sold in hundreds of retail locations across the country, including Whole Foods, Krogers, and Sprouts.

Instacart Brings Caper’s AI-Powered Checkout to Fenway as It Transforms Into a ‘Retail Enablement Platform’ Company

Last fall, Instacart acquired smart checkout startup Caper AI as it looked to bulk up its technology solutions to offer retailers who want to enable contactless checkout. This week, the company has relaunched Caper’s system and announced one of its first locations for the system: Fenway Park.

Instacart is making its Fenway debut thanks to Aramark’s Sports and Entertainment, the same group that helped Bartesian’s automated bartender gain entry into the luxury suite in different ballparks this season.

Physically, the Caper Counter looks to be no different than the product Caper offered as a solo company. The only difference is Instacart now owns it. The system uses computer vision and sensors to identify items based on shape, color, size, and other features. The customer can load up to ten items into the Caper Counter at a time.

When Instacart acquired Caper last fall, I suggested that the acquisition looked to be part of an effort by the company to transform itself into a digital platform arms dealer as more grocery providers looked to make online grocery one of their core competencies and questioned whether Instacart’s online grocery service was disintermediating them from their customers.

From my post:

…as Instacart grows its enterprise technology solutions, I expect we’ll increasingly see its flagship shopper service decoupled from its technology as it looks to serve larger retailers who want greater control over the customer relationship. Since the start of the pandemic, many grocery retailers have started to roll out and standardize around their delivery services, which means a fast-growing market for technology solutions. My guess is that Instacart is anticipating this as it rolls up some of the best-in-class independent solution providers as it prepares for an IPO soon.

This effort to transform itself is precisely what is happening. Over the past month, the company announced the Instacart Platform, a suite of technology offerings for grocers and retailers to help them with digital transformation. The company has also changed how it describes itself. At the time of the acquisition last fall, the company called itself ‘the leading online grocery platform in North America.‘ In today’s announcement, the company has swapped the term online grocery platform company for what it calls a retail enablement platform “that works with grocers and retailers to transform how people shop.”

For those who want to see the Caper Counter in action, the automated checkout system will be available at three different locations at Fenway Park starting today.

Total Online Grocery Sales Down 6% in March, But Grocer’s Home Delivery Business Still Growing

According to a new report by market researcher Brick Meets Click, total US online grocery sales were down 6% in March versus 2021, dropping to $8.7 billion versus March 2021’s record sales of $9.3 billion.

Bricks to Click defines the online grocery market in three segments: Ship-to-Home, Pickup, and Delivery. Ship-to-Home, which includes grocery delivered via parcel carriers (UPS, FedEx, USPS), saw the biggest decline, dropping by 30% from $2.1 to $1.4 billion. Pickup, which includes curbside, in-store, lockers, and drive-thru pickups, was down by 11%, dropping from $4.3 to $3.8 billion.

But it wasn’t all bad news. Delivery – which includes both grocer first-party (Kroger, etc.) and third-party service provider (Instacart, Shipt, Doordash) delivery – was up year over year, going from $2.9 billion to $3.5 billion.

In its analysis, Brick to Click pointed to the emergence of fast-grocery delivery as one of the reasons for the category’s growth.

“Two factors continued to drive Delivery’s strong performance in March,” said David Bishop, partner at Brick Meets Click. “First, the aggressive expansion of third-party providers into grocery is enabling additional ways for people to shop online, and second, newer services focused on faster cycle times are appealing to a broader range of trip missions and usage occasions,” he added.

One of the things we wondered early on in the pandemic was how much behavior change, such as online grocery adoption, would stick over the long haul. From the looks of it, many consumers are continuing to use online grocery shopping as the country emerges from the pandemic, but look to be mixing home delivery with trips to the grocery store.

You can read the full release from Bricks Meets Click here.

Tech-Powered Retail is Flourishing in the Food Industry. Everywhere Else, Not So Much

When B8ta launched in 2015, I loved the idea. What wasn’t there to like about a highly experiential, tech-powered retail concept where consumers could try out cool new gadgets and companies could get invaluable early feedback about their products?

The same with Amazon Books, which opened the same year. I mean, sure, it almost seemed cruel that the dominant e-tailer was going to head to head with Barnes & Noble on their turf, but that didn’t mean I wasn’t intrigued to see how the tech giant might rethink physical goods retail.

Fast forward to this year, and within the span of a couple weeks, we’ve learned both B8ta and Amazon Books are closing their doors.

Contrast this with the world of food retail. Everyone from Amazon to Walmart to upstarts like Nourish & Bloom are employing cutting-edge technology like AI, robotics, and more to power new food shopping experiences. So why is it that tech-powered food retail is flourishing while other retail concepts seem to struggle?

Part of it may be due to changing consumer habits post-COVID. B8ta founder Vibhu Norby talked about this when explaining the company’s struggles with Modern Retail:

“Although foot traffic began to tick back up, “a lot of specialty retailers like us, we had a much slower recovery curve,” Norby said. “A lot of landlords – they were looking at percentages, looking at averages…trying to determine who they should give concessions to.” 

That slower-than-expected recovery led the company to close 15 of its stores roughly a year ago to cut costs, even though b8ta was still on the hook for leases. “We didn’t really have a choice…part of the plan was to negotiate settlements of different types with the landlords,” Norby said. Eight stores in California, Colorado, Massachusetts, New York and Texas remained open. 

In other words, physical goods retail had struggled for years and COVID just made things much worse, killing walk-in traffic during the worst part of the pandemic and permanently reducing traffic during the long and slow recovery.

Another big reason is that most retail industries outside of food have already been cannibalized by e-commerce. Items like books and electronics, which is pretty much all Amazon Books sold. Of course, it has to be noted that Amazon itself is as responsible for the death of physical goods retail as anyone, all of which makes the Amazon Books concept seem something of a self-indulgent thought experiment. But thought experiment or not, it does say something that a company as inventive and tech-forward company as Amazon couldn’t make physical retail work.

Finally, it may have a lot to do with how entrenched physical retail food shopping is, even two years into a period of massive growth for online grocery shopping. The reality is that even after grandma and grandpa finally tried Instacart, most people, young and old, continue to shop for some or all of their groceries at their local store. That’s for many reasons, whether it’s the difficulty of selling fresh food online or the last-minute nature of many dinner plans. Still, I imagine the biggest reason is this: Consumers like to see, touch, smell, and taste the food before buying it.

I still think there’s a future for new retail concepts, but potential operators should tread carefully and make sure it’s not an industry where consumers can easily buy the product on Amazon or elsewhere.

And, if possible, sell some food.

Are Food Delivery Lockers the Next Must-Have Home Amenity?

Everywhere you look there are delivery lockers. Grocery stores, apartment buildings, office lobbies.

So why not at our home?

If you’re Jeremy High, the idea makes lots of sense. As a luxury home builder in the central California market of Monterey, High works closely with clients spec’ing out features customized around their lifestyles. A recurring ask he hears from his customers is they want a way to ensure that food delivered to their home is safe and kept at the right temperature.

The more he heard this, the more High wondered if a solution existed to help his customers. When he realized there wasn’t, he decided to build it himself.

High’s product, eventually called the Fresh Portal, is a food and package delivery locker built into the side of a home. It has temperature control zones for either hot or cold food and would be accessible both from the outside and inside. It would be managed by an app and integrated with third-party delivery service providers like UberEats or Amazon Fresh so they can access the outside of the locker and insert a delivery.

For High, who first thought of the idea in 2014 and filed for a patent a year later, the product needed to be installable both in new builds and retrofits. To make that possible, he designed the Fresh Portal to use an install concept similar to that of a retrofit window, where the installation process pierced the building envelope, and then the installed product is integrated with the home’s existing waterproofing.

“The design allows us to install this rapidly,” said High. “We can install this and not do any patchwork. No paint comes out. Nothing like that.”

High, who is raising money for his company, plans to have a shippable product by sometime in 2023. He estimates the pricing for the system will be $3,450 installed.

If this all sounds a little first-world problem-ish to you, it is. None of that should be surprising since High’s typical customer has enough wealth to buy a new multimillion-dollar home.

But the luxury home builder turned tech entrepreneur does have a plan to make his food delivery lockers more accessible through subsidization. One such scenario could include a Fresh Portal included as part of a food delivery subscription service. Another is one in which the Fresh Portal earns revenues from third-party delivery service providers.

“DoorDash can deliver to a First Portal versus your porch or knocking on the door and waiting,” said High. “Efficiency and the first time delivery success metric goes up because they’re delivering to a product.”

In exchange, High believes that the delivery companies would pay his company 1% of the sale if it’s delivered to a Fresh Portal. This is all in the idea stage at this point, as High has yet to strike any deals with third-party delivery companies, and I have to wonder if they’d willingly part ways with even a thin slice of their margin.

I think High has time to figure out his subsidization models later, mostly because I see the Fresh Portal as primarily a solution for new homes or remodels for the next few years. I can see the home delivery locker becoming a trendy new homebuilder amenity, where the product’s price is rolled into the monthly mortgage payment.

Longer-term – think a ten-year time horizon – I can see a future where home delivery lockers become commonplace. Like the milk box of a bygone era, only these boxes will be refrigerated, connected to the cloud, and – if you own a Fresh Portal – built into the side of your home.

How Do You Train AI-Powered Checkout To Recognize A Product? In Vegas (& Elsewhere), You Throw It Like Dice

When it comes to training machine vision and AI-powered retail checkout systems, packaged goods and locally created food items are treated very differently.

That’s at least according to Mashgin, a maker of touchless checkout systems. Company spokesperson Toby Awalt said that’s because another store on the network has likely already added that bag of chips or candy bar to their 10 thousand plus item database.

Not so when it comes to locally made food items.

“CPG items, we have to do less and less because there’s enough overlap,” said Awalt, who gave us a walkthrough of the system at CES 2022. “But for dishes, we’ll do every time.”

According to Awalt, adding a new food menu item for a restaurant doesn’t take that since most cafeterias or restaurants only serve between 15 and 50 items.

“You can do that relatively quickly,” he said.

Still, a new packaged good has to be entered into the system now and then. Whenever that happens, the operator has to position the package in several different positions to give the system enough info to recognize the product whenever it shows up under the camera.

Mashgin’s Toby Awalt Rolls the Häagen-Dazs

“I actually do dice rolls with the product,” said Awalt, throwing a Häagen-Dazs ice cream bar onto the tray.

According to Mashgin, the company recommends the system capture 20 to 50 total positions of a product so it can recognize the product from various angles and also distinguish between different variations within the same product line (such as two different flavors of ice cream or potato chips).

You can watch a walkthrough of the Mashgin system below.

The Spoon checks out Mashgin's AI-Powered Checkout at CES 2022

Grocery Robot Specialist Simbe Robotics Patents System to Detect Produce Freshness

Whether it’s to carry groceries around the store or to deliver them to our front door, it won’t be too much longer before everyday shoppers see robots both in and around the grocery store.

But one potential interesting new use-case for in-store robotics we haven’t heard much about is for detection of produce freshness. That may change soon, as Simbe Robotics, the maker of the Tally 3.0 robot, has just been issued a patent for spectral imaging of produce and meats and detect how fresh they are.

The US patent, which is number 11,200,537 and titled “Method for tracking and characterizing perishable goods in a store,” uses computer vision to record images across a period of time and derive a set of characteristics specific to the type of food. For produce, it can assign a percentage of ripeness, determine whether it is under, over, or at peak ripeness, and determine if there is other biological matter such as a contaminant on the food. It can also determine whether a fruit or vegetable is rotten, damaged, or bruised.

Figure from Simbe Robot’s New Patent

From the patent:

The computer system can access and implement hyper-spectral template histograms or template spectral profiles for “underripe by three days,” “underripe by two days,” “underripe by one day,” “ripe,” “overripe by one day,” “overripe by two days,” “spoiled or rotten”, and “moldy” for specific varietals of fruits and vegetables or for fruits and/or vegetables generally. Similarly, the computer system can access and implement hyper-spectral template histograms or template spectral profiles for “fresh,” “rancid,” “low-fat,” “moderate-fat,” “high-fat,” “low-water content,” “moderate-water content,” and “high-water content” for specific varietals of meats or for meats generally.

For those unfamiliar with the Tally 3.0 robot, the company first unveiled its latest in-store mobile grocery robot in October of 2020. The robot, which wanders grocery store aisles to monitor product levels and detects misplaced items, utilizes computer vision and AI algorithms to capture and provide data to store managers more quickly without needing to send as much information to Simbe’s cloud platform.

This type of mobile inventory checking technology is valuable enough, so much so that grocers like Schnucks have already started deploying the robot across the entire chain of stores. Others, like Hy-vee, are in trials with the Tally 3.0 and likely will expand their fleets over time.

As Simbe’s robots add the capability to help grocers fight food waste – one of the most significant cost drivers for the notoriously thin profit margins in the grocery business – chances are we’ll see more grocers adopt in-store inventory robots en masse.