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Generative AI

October 3, 2024

When it Comes to Using AI To Shape New Culinary Creations, Ali Bouzari Thinks Food is Mostly ‘All Hands’

In the most recent episode of the Spoon Podcast, I caught up with food scientist Ali Bouzari to discuss his work and get his thoughts on new technologies that are helping to shape the future of food.

I first met Bouzari when he spoke at the Culinary Institute of America a few years ago about how robotics could impact food service and other sectors. At the time, he talked about Creator—a burger restaurant powered by robots—and suggested that food robots could sometimes do things that most food service employees could not replicate. He specifically referred to how Creator’s burger bot could create more intricate structures in the burger patty than possible to enhance mouthfeel.

When I asked him about this on the podcast, he suggested that while yes, there are things technology can do, he was worried about the recent obsession with AI and using it to craft recipes and new culinary creations. He drew a parallel between AI’s notorious difficulty in rendering realistic-looking human hands in artwork and the challenge of using AI in food production.

“You know that recurring motif where somebody will put a seemingly impressive piece of AI-generated imagery up and be like, ‘My God, look at Darth Vader doing this thing in Saturday Night Fever or something.’ And everybody always says, ‘Look at the hands, look at the fingers.’ And there’s always something wrong with the hands. There’s something that is difficult for AI to crack. What I would say it is most of food is hands. Food is basically all hands.”

Bouzari also shared how multiple clients had approached him after playing with generative AI tools to experiment with developing food products. “We have clients being like, ‘Hey, ChatGPT said we should put arrowroot flour in this cookie.’ I think that somebody is feeding all of the AI brains a lot of great information about arrowroot. Because three different people on three different projects have said that AI said, ‘Have you tried arrowroot?’ which is, in a lot of instances, kind of a useless ingredient.

But thinking about things like AI have caught his attention, Bouzari told me the biggest challenge that has his attention nowadays is the impact of climate change and how food brands are facing a reality that their products may not have a future if they continue to do things – and create food products – in the same way as they have in the past.

One example he gave is the global cacao shortage. “Chocolate is in trouble,” Bouzari said. He pointed to how disruptions in cacao production are driving up costs and threatening the availability of what is a beloved staple. This isn’t some distant, theoretical issue Bouzari told me. “It’s already happening.”

And it’s not just chocolate.

“Coffee’s next,” said Bouzari. “Coffee might do a thing where, like grapes, it just creeps higher and higher latitudes as things change.”

And because of this urgency food brands are now faced with that Bouzari gets a little annoyed with how food makers are sometimes distracted with shiny new toys while missing the big picture.

“My thinking with food is it’s a little bit extra irksome, the conversation around AI sometimes, where people say, ‘I’ve spent six months trying to get this generative AI to make me a new pasta recipe,’ when I don’t think we need that. And the water and energy cost of all of that computation is directly contributing to, I think, the actual biggest existential problem we have, which is climate change.”

We also talk about Bouzari’s experience on the Netflix Show Snack vs. Chef, his thoughts on alternative proteins and what gets him excited about the future.

You can listen to the full episode on Apple Podcasts, Spotify or by clicking play below.

August 2, 2024

Amazon Gives a Peek at the New AI Model Powering Just Walk Out Platform

This week, Amazon gave a sneak peek at the new AI model that powers its Just Walk Out platform.

In a post written by Jon Jenkins, the VP of Just Walk Out (and, as Spoon readers may remember, the former founder of Meld and head of engineering for the Hestan Cue), we get a peek at the new AI model from Amazon. Jenkins writes the new technology is a “multi-modal foundation model for physical stores is a significant advancement in the evolution of checkout-free shopping.” He says the new model will increase the accuracy of Just Walk Out technology “even in complex shopping scenarios with variables such as camera obstructions, lighting conditions, and the behavior of other shoppers, while allowing us to simplify the system.”

The previous Just Walk Out AI model was built in 2018 using generative AI and machine learning models available at the time. This technology, while advanced for the time, could only power a sequential processing of key variables – shopper movement and location in the store, what they picked up, and the quantity of each item—each action processed one after another. This sequential processing worked in most simple scenarios, but complex scenarios like multiple shoppers accessing the same area at a given time, would lead to potential errors that would need to get sorted out at checkout.

The new system differs from the previous system in that it analyzes data from multiple sources—cameras, weight sensors, and other data—simultaneously rather than sequentially. It also uses “continuous self-learning and transformer technology, a type of neural network architecture that transforms inputs (sensor data, in the case of Just Walk Out) into outputs (receipts for checkout-free shopping).”

Jenkins writes that the new system will be better at navigating these complex situations that would result in potential errors with the previous system. He detailed a scenario where a shopper picks and puts down multiple varieties of yogurt, and while doing so, another customer reaches for the same item or the freezer door fogs up and obscures the cameras’ view. In this scenario, the new system processes inputs from various sources such as weight sensors on the fridge shelves and continuously learns from these inputs, eventually deciding which are most important in order to accurately sort out who took what.

The post also gave an update on the current installed base of Just Walk Out technology. According to Amazon, Just Walk Out is currently in 170 third-party locations, including airports, stadiums, universities, hospitals, among other locations. The system is installed in the US, UK, Australia, and Canada and the company plans to double the number of third-party stores with the technology in 2024. 

May 9, 2023

Wendy’s Announces FreshAI, a Generative AI for Drive-Thrus Powered by Google Cloud

Today Wendy’s announced it is working with Google Cloud to develop a generative AI solution for drive-thrus called Wendy’s Fresh AI.

The new solution, which is powered by Google Cloud’s generative AI and large language model technology, will go into a pilot test next month at a Wendy’s company-operated store in Columbus, Ohio. According to the announcement, the new tool will be able to have conversations with customers, the ability to understand made-to-order requests, and generate responses to frequently asked questions. 

In contrast to general-purpose consumer interfaces for LLMs such as ChatGPT and Google Bard, Wendy’s Fresh AI will be walled off and tailored around interacting with customers ordering food at a Wendy’s drive-thru. According to the company, Wendy’s Fresh AI will have access to data from Wendy’s menu and will be programmed with rules and logic conversation guardrails, ensuring that the conversation bot doesn’t spout off about politics or culture when prompted, but focuses solely on helping customers get their burger order right.

The deal is a nice pick-up for Google, which has been on its heels to a degree since last fall when the OpenAI released ChatGPT. Google’s strength in enterprise platforms through its Google Cloud infrastructure services could possibly give it a leg up on other generative AI platforms, even though OpenAI beat the company to the fast food drive-thru lane through its partnership with Presto.

Wendy’s says that it will use the learnings from the pilot to inform future expansion of the platform to other Wendy’s drive-thrus.

Where Is This All Going?

The restaurant quick-service industry has been embracing digital transformation in a big way over the past few years as a way to remedy the industry’s continued struggle with finding qualified workers, and the fast food drive-thru is probably one of the roles could be largely automated with a well-tuned generative AI model. I can envision a hybrid model that utilizes a gen-AI as the first point-of-contact customer interaction layer, but has it backstopped by a remote carbon-based life form (i.e. human) that can step in when there is the first hint of something out of the ordinary. Think of it as a Gen-AI/Bite Ninja hybrid model (while Bite Ninja hasn’t announced any AI solution partnerships for its cloud labor platform, I would be surprised if those conversations aren’t already underway).

April 18, 2023

2023 Restaurant Tech EcoSystem: Nourishing the Bottom Line

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

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

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

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

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

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

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

The Journey from Point Solutions to Comprehensive Tech Stacks

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

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

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

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

Help *Still* Wanted   

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

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

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

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

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

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

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

Ghost Kitchens: It’s Even More Complicated

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

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

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

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

Last Mile Magic

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

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

GenAI on the Menu

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

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

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

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

Emerging Restaurant Tech Concepts to Watch

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

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

March 24, 2023

Instacart Announces ChatGPT Plugin to Power Conversational Shoppable Recipes

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

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

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

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

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

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

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

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

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

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