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Q&A: Goodr’s Jasmine Crowe Talks About Her Plan To Build a $100 Million Company Addressing Food Waste & Food Insecurity

Last month, food waste reduction and food insecurity startup Goodr raised an $8 million Series A funding round.

When Jasmine Crowe founded the company, the Atlanta-based startup used technology to help large food service providers reduce food waste. Over the past two years, Goodr has expanded its business to provide expertise to companies looking to provide food to those in food insecure situations.

I wanted to catch up with Crowe to ask her about how the business has evolved, the challenges of raising venture funding as a Black founder, and where she sees the company going in the future.

You can read the full interview transcript below.

Before this most recent round, you’d managed to operate without a lot of outside funding.

We really just bootstrapped. To date have done more revenue than we’ve done in funding, which is something I’m personally proud of.

What was some of the thinking behind deciding to go after new funding?

It was really about scaling up to meet our demand. We had so many big deals that we were bringing in, so many new customers that we were onboarding. Because we have always been really lean and capital efficient, we’ve also had a very small team. So it really got down to ‘hey, we need to, we got to get more people in the door.’ And so that’s kind of really what happened. I was like, ‘I’ve got to raise money because I’ve got to hire more people.’

This round comes at a time where we are seeing a pullback in venture funding. You were right in the midst of that pullback.

We definitely were 100% all involved with that market change and it was scary. It was really scary because we just didn’t know. When I started raising funds in the market in late September, October of last year, and I remember one of my investors was like, ‘oh, Jasmine, your numbers are so great, look what you’ve done.’ At the time, I had only raised like $1.4 million or whatever prior to so we were like ‘you’re going to be able to raise this money so easily, like this is going to be the fastest money you’ve ever raised’. And it definitely wasn’t that. I think we had some struggles with it.

When did you notice the winds of change?

It was March of this year. We had an investor that we were working with, and then they were like, ‘Oh, the market is changing, we’re gonna have to protect our downside’. And they tried to give us these really just terrible terms. There was a lot of that. For me, that was scary because we were at a time when we were trying to grow the company and ultimately, this was happening, and I was very afraid we weren’t going to be able to do it. But we made it through.

When I first talked to you in 2017-18, some of the company’s focus was on food waste reduction using technologies like blockchain. That was part of Goodr’s pitch early on. Through the pandemic, you really moved to help people in a time of food insecurity. So talk about how the business has evolved over the past couple of years.

At the start of the pandemic, we were extremely busy, because so many businesses were closing and we were giving all of their food as you can imagine. So eventually, I thought ‘You know what, you got to go back to what you’re really good at Jasmine and that’s helping people. You got to get back into the groove of like making sure people have access to food.’ And so we spun up the hunger solution side of our business. We made it very clear and very easy to work with us to address food insecurity in a community. So we began working with customers like the NBA, and Accenture, and State Farm, who wanted to do something with a lens of being positive, of being in the community, and giving people that dignity. We’re still helping businesses reduce their food waste, but we’re working on the food insecurity side as well.

Is there still a blockchain-oriented component to your food waste reduction solution?

We do have two use cases. One is a smart contract with our nonprofits, where when they sign for the deliveries, there is a letter of donation letter that goes into our clients’ platform that their signature somewhat creates. And so we have an agreement with them to do that. And then there’s one use case on Ethereum just really showing how the food is moving, who’s getting the food, what time it was received. It’s there, but we pulled back from it because it was becoming super trendy.

How would you describe the food waste reduction platform and the technologies?

The best way to describe it is we inventory everything it is that a business sells. We make it really easy for them to request a pickup. So this is a one stop shop for those clients. They’re clicking on the items that they have, they’re requesting a pickup and we’re leveraging our APIs and our technology to aggregate different drivers for the logistics of getting that food picked up and then delivered directly to those nonprofits.

What it also does is it converts for every single pound of food that we keep out of landfill. It’s converting that to a lot of sustainability metrics that our clients are using, such as how many meals are provided, how many people, who the food is going to, how many pounds of CO2 emissions that they’re helping to prevent. We have a dashboard that also says to them, ‘this is equivalent to this many gallons of water, this many trees kept off the road.’ So it really helps them to tell a story around their sustainability initiatives.

Who is your typical customer?

We have a lot of large corporations. Our big customers like the food service customer. So we have the Sodexos, the Aramarks, the Compasses, those are essentially our customers. And then we work with their locations to roll out the service. We serve companies like Nike, Oracle, LinkedIn and Goldman Sachs, Capital One. They’re our customers, but we’re really getting all the food if that makes sense.

We know that the tech industry has too many white guys. When you went out there to raise funding, as a Black founder, was it more challenging for you? What barriers did you find?

It was definitely hard. An article I saw last week made it clear that the amount of funding that was going to Black founders has gone down. I was really focused on the business in 2020 and 2021, as opposed to I think probably focusing on trying to get the money in. So it’s hard, and it didn’t get easier for us. But what I will say is, I felt like I still went out there and went after it the right way. It wasn’t easy for me, and I probably should have gone out sooner. In hindsight, I think that was the thing that I missed out on. Going out in late 2021 hurt me because it started to slow down a little bit.

Tell me about your current like footprint in terms of cities and reach.

In terms of revenue and customer size, our top five markets are Atlanta, Washington DC, Dallas, Denver. We’re seeing a lot of work like in the tri-state area; we have a lot of customers in New Jersey, Philadelphia, New York area.

We’re really trying to expand what our client base is. We operate in about 26 cities right now, and our goal is to really be everywhere in the United States. We just want to be in as many places as we can. And eventually, probably not with this round of funding, but we’re going to start looking at what it looks like to have some kind of North America expansion, most likely, throughout Canada or Mexico.

I understand the food waste reduction side monetization model. Can you talk about the business model for the food insecurity management side of the business?

It’s such a big span. I think a lot of people, because it’s so charitable, they don’t look at it from a business standpoint. Billions and billions of dollars are spent on an annual basis trying to feed people. Now Goodr is coming in with this as a systematic solution, saying what this many, with this amount of money, this is how many meals we’ll be able to provide this many families.

So it’s a managed service?

It’s a cost-plus model. Our customers will come to us and say ‘we have a budget of $50,000, we’d like to service families that are food insecure.’ We then create a menu, we do the entire activation. So it’s a cost plus. They’re paying an administrative fee plus the fee for all of the food.

What’s the big plan five years from now? What do you want Goodr to grow into?

I think it should be worldwide. Ultimately, within five years, we are tracking ourselves to being a company that’s making $100 million a year. I think we could get there within five years. Our goal for 2024 is to be about $25 million, and so really to see ourselves double year after year after that. Food waste is becoming such a bigger problem, so people are finally paying attention to it. When I was first getting started with this company, ao many people just didn’t believe it was a big issue and they didn’t think it was a big deal. And now, I think people are starting to understand food waste is a problem and what can we do to address it. More and more customers are coming to us, and it’s a blessing.

Thank you for your time.

You’re welcome.

With European Governmental Approval, Ynsect Moves Forward With Its Plan to Feed the World, Save the Climate

Will bugs save the world?

Save may be a strong word, but Paris-based Ynsect, a producer of insect protein and natural insect fertilizers, believes in the dual mission of feeding the world and protecting our diminishing climatic resources. That vision moves a step forward with backing from a European food safety agency and data that supports a change in consumer attitudes toward a diet containing bugs and insects.

According to Ynsect’s CEO Antoine Hubert, approval by the European Food Standard Agency for Ynsect’s Lesser mealworm for human consumption will allow his company to quickly move forward with its efforts to create its line of insect-based products as well as work with third-part food manufacturers.

“Our company was born from a passion for helping tackle climate change through real solutions. Insect protein, which can easily be incorporated as a powder into a whole range of products, is healthier than plant protein and more environmentally friendly than traditional animal proteins,” Hubert told The Spoon in a recent interview. “We’re excited to see the EFSA approval come through in line with consumer demands; conscious consumers become increasingly informed of better choices for both them and the environment.”

Coinciding with the EFSA green light results from an independent research firm gave further credence to Ynsect’s timing. OnePoll, a British market research company, surveyed consumers to gauge their willingness of participants to consume insects as an alternative source of protein. At first, only 59% were open to the idea, but after learning the benefits of insect consumption, over 70% responded favorably. More than half of vegans and vegetarians responded favorably once the benefits were explained.

Mealworms are the larval form of the mealworm and Buffalo beetles, an insect that Hubert says is rich in protein and fat. The mealworm as a bug has been part of Southeast Asian diets and can reproduce prolifically. Ynsect uses vertical farming techniques to “grow” these insects and deploys chemical-free produce to turn them into a range of products, including fertilizers and pet food. Recently, Ynsect expanded its footprint by acquiring Protifarm, a Dutch mealworm producer, and then by incorporating Nebraska-based Jord Producers, a start-up mealworm farm, into its portfolio.

Ynsect’s consumer product is called AdalbaPro, a minimally processed ingredient line offering meat replacement and protein fortification solutions. Working with European partners, AdalbaPro products are already in several baked goods, sports nutrition, pasta, and meat alternatives. AdalbaPro contains all essential amino acids, vitamins, and minerals as a high-quality animal protein.

As Hubert chronicles his company’s path, not only has it shown organic growth by evolving from a fertilizer/aquaculture company to pet food and then to a product for humans, but Ynsect’s approach has also overcome the issue other alternative protein companies face in building infrastructure. The company has carefully conducted its mealworm growing processing plan, which allows it to remain nimble for an opportunity in Europe and, hopefully, after governmental approval, the U.S.

To date, Ynsect has raised more than $400 million from such companies as OurCrowd, SuperNova Invest, and Caisse d’Epargne. The company also has captured the imagination of the real-life Iron Man, Robert Downey Jr. The actor/investor recently touted Ynsect’s product on Steve Colbert’s late-night show.

(Extract) Robert Downey Jr - The late Colbert show with Stephen Colbert

Forget Sidewalk Robots or Drones. In the Future, Food Could Travel to Your Home in Underground Pipes

Why use a drone or sidewalk delivery robot to deliver packages when you can have them sent directly to your kitchen via a series of tubes?

No, I’m not referring to Ted Stevens’ imagining of the Internet or a plotline from a Steampunk novel, but one startup’s vision of an underground delivery network that would send packages hurling towards their end destination at speeds of up to 75 miles per hour.

That startup is Pipedream Labs, which has a plan to build an underground pipe network for near-instant delivery of physical goods. The idea, which is one of those that is so crazy you can’t figure out if it’s brilliant or stupid, works like this:

The Pipedream delivery system would be a citywide underground delivery network that utilizes pipes and electric-powered delivery pods to shuttle things around at high speeds. It’s essentially a Hyperloop for delivery, only instead of transporting people, it will bring you the latest Amazon package or hamburger from your favorite restaurant.

While the initial plan is to create a “middle mile” network for long-haul delivery across cities, the company’s CTO says they have a vision for eventually delivering products directly into consumers’ homes. He envisions a new kind of home appliance called the Home Portal which would enable “cheap, fast, and environmentally friendly delivery of groceries, food, and packages.”

The delivery infrastructure will be PVC piping, the same kind used by city utilities for plumbing or electrical systems. In fact, the company says they plan on making all infrastructure usable by utilities “if needed” or “in the event that PipeDream migrates to an alternative delivery method (Star Trek Transporter?) or ceases operations”.

Packages would be delivered “intra-district” to different parts of the city and would go to what the founder describes as delivery nodes.

The nodes will utilize delivery portals, vending machine like kiosks that would hand off goods to a customer or to a last-mile delivery person or robot. Portals hand off packages through a hatch and can cache up to 8 delivery pods at a time, allowing it – for a limited amount of time at least – to act like an Amazon storage locker.

Source: Pipedream Labs

Delivery pods are 10.8″ in diameter by 18″ in length and have a theoretical speed of over 110 miles per hour (but will likely move around at a speed of 60 to 75 miles per hour when in operation). They have two sections, a drive section (which includes the motor, electronics, and battery) and a removable cargo carrier section.

Pipedream envisions all sorts of products delivered via their pods, including food. According to the company, the internal capacity has room to carry 95% of grocery items and most any type of prepared food from a restaurant (except for pizza, which the company says they are working on).

The analyst in me looks at an idea like this and says there’s no way it would work. The cost of building out the network, the difficulty of navigating city bureaucracies to get a network deployed, not to mention the many technical challenges of creating an underground system and operating it all seem insurmountably difficult.

But as I think about a world where ever-more products are delivered to our homes, it doesn’t take long to realize we’ll need a variety of creative solutions beyond the status quo. Car delivery doesn’t make sense long-term for small packages, but we also don’t want to live in a dystopia with drone darkened skies or sidewalk robots congesting our walkways. Taking a portion of package delivery underground may make the most sense long term.

Of course, it will take a while before we ever know if Pipedream’s, um, dream comes true. The company has only raised $1.6 million in seed funding so far and would need to tap into utility loan funding to build a network of the size they envision.

But who knows? Maybe Elon Musk will embrace underground delivery the same way he’s helped push underground transportation forward and invest in the company, or a forward-looking city will work with Pipedream to fund an underground delivery network for stuff over the next decade.

Either way, an operating underground delivery network is an interesting new idea and one that might have a future in an increasingly e-commerce-driven world.

Else Labs Announces Pro Kitchen Focused Oliver Fleet As It Pauses Rollout of Home Cooking Robot

Else Labs, the company behind the countertop home cooking robot called Oliver, announced today the launch of Oliver Fleet, a commercial kitchen reimagining of its original core product.

The new Fleet solution is a respin of its original standalone Oliver home cooking robot into a solution that allows multiple units to be used and managed simultaneously in professional kitchen environments to automate cooking tasks. According to company CEO Khalid Aboujassoum, while the Oliver Fleet units look the same from the outside as the original consumer unit, they’ve been built to withstand the more rugged requirements of the professional kitchen.

“It might look like the household unit from the outside, but the guts of the Oliver Fleet are different,” Aboujassoum said. “The Fleet units are designed for back-to-back cooking, for that harsh environment in the commercial kitchen compared to the household.”

With the pivot to a food service focused solution, Else is pausing the rollout of the home Oliver. According to Aboujassoum, the decision to make the change was largely driven by the supply chain disruptions and associated component shortages and price changes. While some backers of the Indiegogo campaign eager to get their home Oliver may not be happy with the switch, Aboujassoum said the company would give them the option of a full refund, or they can choose to continue to wait until the company restarts the consumer unit rollout.

While the focus on commercial automated cooking comes after a pandemic where restaurant businesses have faced increasing challenges around labor, Aboujassoum told me the company started hearing interest in developing a commercial version of the Oliver before COVID.

“It was an initial modest conversation at an exhibition late in 2019 where the Oliver got the attention of one of the food service companies,” Aboujassoum said. “The composition of the Fleet was born out of these conversations.”

The pandemic put everything on hold, but eventually, Else Labs started to hear more requests as things began to normalize. “As the dust settled, those conversations revived again,” Aboujassoum said. “We started receiving an influx of inbound requests all the way to the CES participation (earlier this year).”

The way Aboujassoum sees it, the Oliver Fleet can help food service companies move away from centralized food production in a central kitchen by pushing the ability to cook from raw ingredients on-site using automation.

“When I talk to (food service) clients, they’ve set up operations where they may have a huge central kitchen with a production plant, and they are shipping to maybe 50 locations,” Aboujassoum said. “We are talking about decentralizing the central kitchen. How much money can you save by deploying the Oliver Fleet and decentralizing the central kitchen? It’s a very transformational proposal.”

Aboujassoum says the Oliver Fleet system is available now and they will have announcements of deployment partners very soon. You can see a video of the Oliver Fleet system in action below.

Podcast: A Challenging Time for Restaurant Tech

In this episode of The Spoon, we are joined by long-time restaurant and restaurant tech journalist Nancy Luna of Insider to compare notes about what’s been a challenging few months for restaurant tech startups.

Some stories we discuss on the show include:

Click play below or find The Spoon podcast on Apple Podcasts, Spotify or wherever you get your podcasts.

BurgerFi Begins Rollout of the Samsung Kiosks powered by GRUBBRR (Sponsored Post)

In December 2021, BurgerFi launched a pilot program with GRUBBRR to test the effectiveness of self-ordering technology to decrease operating costs, minimize the dependency on labor, increase revenue, and provide customers with a better overall experience.

Together, the GRUBBRR and BurgerFi teams worked to develop a project plan, including a curated customer journey and operational process, to optimize efficiency and automate BurgerFi’s front of house. The teams met weekly to monitor successes and challenges and ensure BurgerFi had a phenomenal experience implementing the kiosks. GRUBBRR created an optimized solution designed to create operational efficiency, drive incremental revenue and give customers a better experience.

Throughout the pilot, the Samsung Kiosk powered by GRUBBRR showed a significant lift in sales, with average ticket sizes increasing by 18.5% and 52% of customers opting into upsells. The Kiosk also absorbed up to 133 orders per day on average, accounting for 75% of total orders placed in the store and 78% of net sales.

Following the successful pilot, BurgerFi selected GRUBBRR as its exclusive self-ordering technology provider. The kiosks are currently being deployed across all of BurgerFi’s corporate locations, while franchisees will have the opportunity to opt-in, as well.

GRUBBRR’s self-ordering solutions are in high-demand and have demonstrated an immediate impact on businesses in three material ways: GRUBBRR increases revenue through algorithmically programmed upselling technology, decreases operating costs by streamlining efficiency and reducing the dependency on labor, and improves the customer experience by expediting average transaction time, eliminating order inaccuracies, and implementing loyalty integrations.

According to BurgerFi’s CTO Karl Goodhew, “From an operator perspective, we like the upsell features of the kiosk. From a technology perspective, we like the ability to offer our entire menu, have real-time 86’ing tied into the POS, and enterprise control of multiple units.”

“Samsung’s Kiosk powered by GRUBBRR’s software solution with Samsung’s MagicInfo Cloud, provided an all-in-one solution for BurgerFi that delivered stronger business results and signaled a best practice when it comes to the future of QSR dining trends,” said Harry Patz Jr., Senior Vice President and General Manager, Display Division, Samsung Electronics America. “The pilot program was pivotal to BurgerFi’s decision to standardize Samsung’s kiosk solution so that they could deliver a seamless customer experience, eliminate ordering errors, and allow for easy integration of loyalty programs and discount codes.”

The one-time cost of a kiosk is significantly lower than the price of carrying an employee. On average, a cashier at a quick-service restaurant open 15 hours per day will cost more than $6,000 per month (with all associated carrying costs). In contrast, the Samsung Kiosk powered by GRUBBRR performs all of the functions of the cashier at a fraction of the price. In addition, kiosks always show up, don’t call in sick, and are ready to work 24/7. Replacing cashiers with the Samsung Kiosk powered by GRUBBRR can move that staffer to the production line or other areas, increasing throughput and driving more revenue.

This post is sponsored by GRUBBRR. To learn more about Samsung’s self-ordering kiosks powered by GRUBBRR, click here.

PizzaHQ Opens to Public With Plans to Deliver 1,500 Robot-Powered Pizzas Per Day

The robotic pizza chain of the future envisioned by Darryl Dueltgen and Jason Udrija took a big step forward this week as its first location opened to the public.

The company, which The Spoon first wrote about last year, envisions a modern take on the pizza chain by building a network of robot-powered pizza restaurants tailored for delivery. Its founders started working with Picnic last year to optimize the Seattle startup’s pizza robot to work with their new restaurant concept. Earlier this year, they started delivering pizzas to corporate and education customers and, as of this week, started making pizzas for the public.

When we first talked to PizzaHQ’s founder Jason Udrija, he told us the idea was to build a pizza chain optimized around robotics utilizing a hub and spoke production model. They planned to build a centralized hub to create the raw ingredients and fulfill the orders via distributed fulfillment centers outfitted with Picnic’s pizza-making robots. The company opened its first location in Totowa, New Jersey (in a building once occupied by another pizza restaurant) and has plans to build its centralized production hub in the same city in 2023.

For now, customers can order through their website, an app, and third-party delivery (there is also a pickup area at the front). In the coming weeks, PizzaHQ plans to ramp up the pizza production from about 500 pies per day to 1,500 per day. The company anticipates its next location – with an additional Picnic robot on board – will be able to produce between four and five thousand pizzas per day.

Pizzametry, Pioneering Maker of Pizza-Making Robotic Kiosks, Is Looking for a Buyer

Pizzametry, the maker of the industry’s first pizza-making robot, is looking for a buyer.

In an interview with The Spoon, Pizzametry President Jim Benjamin said that the company, which has been working on its pizza robot for close to two decades, has continued operations for the last few years but has reached the point where they think another owner should take the reins to bring the product to market.

“We haven’t shut down, but we’re in a situation where we’re really looking for someone to take over and bring this to market,” Benjamin said.

According to Benjamin, the company made five Pizzametry units, of which two are currently in operation at an ice arena in upstate New York. The units make each pizza entirely from scratch, slicing and cooking the dough, adding sauce and cheese and toppings, and can go from order to boxed pizza in approximately three minutes. Each unit requires electricity and Internet to operate (but no running water) and has a large video screen for advertising (you can watch a Pizzametry making a pizza here).

The company, which has accumulated several patents around pizza automation, is looking for an interested company or individual(s) who would be open to buying their IP, which includes a license to the patents and the proprietary operating and process know-how, as well as the operating units. According to Benjamin, they would help the company design new machines, including a smaller-footprint machine which he believes is necessary to open up additional operating locations and achieve lower overall hardware costs.

The current machines “are the high volume machines that demonstrate the functionality,” explained Benjamin. “But the sweet spot is, instead of a machine with a 150 pizzas capacity, is a machine more like 50 Pizza capacity per day. Something smaller footprint, able to fit in a convenience store or gas station.”

To develop its pizza machines, the company worked closely with design services and automation service firms in Calvary Robotics and D&K Engineering. The company worked with these firms to understand how to build scaled-up and scaled-down versions of the robot, but at this point, it is looking for a new company to invest in building a smaller-footprint, lower-cost machine.

I had a chance to try a pizza made by a Pizzametry robot when the team flew one up to Seattle for the Smart Kitchen Summit in 2018. The pizza was good, but I can see why they feel they need to build a new version with a smaller footprint. The current unit, which has a refrigerator inside to store the ingredients, takes up about 15 square feet, too big to fit in a typical convenience store on the floor of an airport terminal.

Benjamin agrees and believes they could work with the new owner to build a smaller machine.

“The principles of operation that we would transfer to a buyer would stay the same,” Benjamin said. “The patents that we currently have would be in place, but it would just be a smaller footprint.”

Benjamin explained that they could help with everything from the proper sauce viscosity, the dough formula, and pretty much everything else required to run a pizza robot would be involved in what he described as a “technology transfer” process.

While back-of-house pizza robot startups like Picnic and Hyper Robotic are getting traction, some building robotic pizza kiosks have found the road a little rougher. The news of Pizzametry’s interest in finding a buyer comes just a couple of months after the news of Basil Street selling off its assets. For its part, Piestro, one of the other remaining stand-alone pizza kiosk startups, continues to raise capital and partner with others as they work to bring their product to market.

If you are interested in inquiring about the Pizzametry business, you can contact the company via their website.

People Using The Wonder Food Delivery Service Are Bonkers About It

You’ve probably heard about Wonder by now. The high-profile company founded by Marc Lore has people buzzing with its nearly billion in funding and a model that includes chef-designed meals and a network of vans that cook up the food curbside.

Last month I wrote that Wonder has the opportunity to either reinvent the food delivery business or become a case study like others who have tried and failed to build out fully integrated delivery models.

What I didn’t write about is how much Wonder’s customers seem to love the product. After hearing from people I’ve talked to and reviews I’ve read about it online, it seems the service has an almost fanatical user base.

One person I spoke to told me his family uses Wonder multiple times a week, ordering meals that can range well above a hundred dollars with alcohol included to more affordable middle-of-the-week family meals.

Another wrote via Linkedin, “I live in that one metro market that Wonder delivers to, and it is wildly popular in my town. Last week I couldn’t decide between two Wonder “restaurants” Di Fara from Brooklyn or Mozza from LA. Both pizza spots impossible to get into but not when the Wonder truck pull up to your house and cooks it for you on the spot!”

The responses via Apple’s app store are even more gushing:

“The food was wonderful, and I cannot wait to order again. What a fabulous concept. It really works. Telling everyone that I know about the fabulous Wonder trucks.“

“Impressive how quickly you can be eating a fine restaurant quality meal from the comfort of your own home. Hoping Wonder continues to thrive, and that they keep the bar raised high for their commitment in delivering fine ingredient quality meals.“

Here are a few observations about why Wonder seems to be developing an infatuated following:

Users love the quality of the food. In review after review, people say the food is really good. Almost everyone says the food is as good or better than they could get in a restaurant.

The service is white glove. While some users have said Wonder has a kink or two to work out, it doesn’t seem to matter because the customer service is so strong. When Wonder makes a mistake, someone is there to make it right. People also love the chefs who show up at their door in a white coat and Wonder hat to deliver their meals.

People love access to chef-designed meal concepts. Getting quick access to food that could have been made in far-away and popular restaurants like Di Fara Pizza or J Bird from Jonathan Waxman is something that resonates with reviewers.

Word of mouth and omnipresent delivery vans are reinforcing success. Everyone in the New Jersey metro area Wonder serves seems to know about the service. Word of mouth is extremely strong and people are seeing the Wonder vans buzzing up and down the street.

While I can’t verify how many of the app’s reviews are from Wonder employees or Wonder-friendly people, there are too many positive ones (over three thousand at this point) for the early buzz to be contrived. The strong reviews also seem to reinforce what anectodally appears to be a higher than industry average frequency of usage by Wonder customers. I also imagine strong customer metrics are one of the big reasons the company has continued to raise money in an environment much tougher than it was just 6 months ago.

If you’re lucky enough to live in Wonder’s delivery area, drop us a line and let us know your thoughts. I am still unsure how the model scales nationwide, but there’s no doubt that early results show Marc Lore and his team may be creating something special with Wonder.

Germany-Based Mushlabs Scores An Infrastructure Partnership with Bitburger Brewery Group

Hamburg-based biotech startup Mushlabs may have created the perfect storm in its approach to creating a clean, nutrient-rich plant-based meat alternative. The company can hit the ground running without worrying about costly infrastructure and potential distribution partners by applying its proven technology and a sound business approach.

Mushlabs has announced a relationship with Bitburger Brewery Group, a large private brewery in Germany. Bitburger will provide capacity and sidestream byproducts from its beer production as raw materials. Mushlabs intends to enhance and use these local byproducts to cultivate edible mushroom mycelium in a precision fermentation process. The mycelium will be used to produce nutrient-rich, minimally processed foods.

“(Bitburger) has a valuable sidestream that would otherwise get burned to produce energy or go to cattle, but is also not necessarily super stable,” Thibault Godard, Chief Science Officer at Mushlabs, told The Spoon in an interview. “So we are offering them a solution to upcycle in a way that is also better for the planet.”

Godard boils the complex process down to a simple example: “I like the example of coffee. For instance, coffee has 80 to 90% of waste from the crop to the cup. And this is also something where you have valuable nutrients there that you can recycle and produce food. So we are basically taking the leftovers and injecting them into the food system.”

The approach—that is, using mycelium, which has a property that acts as a natural decomposing agent in precision fermentation to create a healthy plant-based protein is what Mushlabs called fulfilling the goal of a “circular economy.”

“In natural ecosystems, fungi recycle nutrients through a specific fermentation process that digests their surrounding biomass,” the company explained in a blog post. “At Mushlabs, we harness this process to produce food from agro- and food industries’ side streams (i.e., spent coffee grounds, fruit peels, and sugarcane bagasse). This is a unique form of food production with many potential applications for the circular economy, yielding tasty meat-alternative products.”

And then there’s the smart business angle. While other companies in similar adjacencies struggle to raise large sums of capital to scale out their facilities with large fermentation tanks, Mushlabs’ partnership with Bitburger will accelerate its growth. Using often underutilized brewing tanks, Mushlabs avoids the cost of new infrastructure. CEO and founder Mazen Rizk acknowledges collocating with Bitburger gives his company a giant boost.

“And not only saving the cost, but it’s also saving the time. Because if we now decide we want to build the facility, I think ordering steel would take you probably a year and a half because there are delays in even ordering steel. Then building a facility is very costly and takes time,” Rizk says.

“When you’re talking about food products. It would be best if you did it in the most economically viable way possible so we can find a sidestream that the mushroom can grow on,” Rizk says. “So part of it is understanding what kind of product you can do, what kind of taste, what kind of nutrition they provide. The other side is understanding which one is economically feasible. How can you produce it at a high yield and low cost to ensure that you have a food product that can go into the market at a price that people can afford?”

In June, the company also boasts a huge financial acknowledgment from the EU’s prestigious EIC Accelerator Program. More than 1,000 startups and small businesses from Europe applied to receive a share of €382 million in total capital. Seventh-four companies each will get funding of up to 17.5 million Euros, with Mushlabs receiving an eight-digit figure. Through the EIC Accelerator program, the EU aims to support technology startups that address societal challenges and drive breakthrough European innovations.

ReGrained Changes Name to Upcycled Foods as It Diversifies Into Non-Grain Upcycled Ingredients

ReGrained is now Upcycled Foods Inc.

The company, which announced the new name as well as a variety of new partners and product announcements at the IFT First trade show taking place this week in Chicago, explained the name change made sense for a startup that had evolved from being a maker of consumer packaged food products utilizing spent brewer’s grain to a platform company that develops upcycled food ingredients for partners and its own group of brands.

Upcycled Foods Inc. “reflects the strategic change we began implementing in 2020, moving from a CPG brand, under the ReGrained name, to a trusted innovation and ingredient platform,” the company wrote in an announcement sent to The Spoon. “We power the food B2B upcycled economy by leading the way for food maker partners with our proven expertise in upcycled product development; deploying cutting-edge technology to create novel ingredient solutions; and building a consumer market for upcycled foods.”

According to the announcement, ReGrained will become a portfolio brand for the company’s grain-based upcycled ingredients. The company also announced two new “ingredient platforms” (aka brands) under which it plans to develop new products: Cacao Fruity Syrup and Coffee Leaf Tea.

Under ReGrained, the company announced a new product development partnership with Irish food and ingredient conglomerate Kerry. The two companies are codeveloping a new upcycled protein crisp product utilizing the ReGrained SuperGrain+ as the foundational ingredient. The new crisp will be designed into food products to add texture and nutrition to products. This partnership is the second of what the company calls ‘value-added’ product collaborations, following a January 2022 partnership with baking ingredients company Puratos.

The company’s new name is not that far removed from the trade association among which it counts itself as a founding member. The company, along with other upcycled startups such as Renewal Mill, launched the Upcycled Foods Association in 2019 to define, create awareness and certify upcycled food products. The association, which launched its certification program for upcycled products one year ago, has already certified 300 products with the UFA-certified logo.

Podcast: The Hard Business of Building an At-Scale Restaurant Tech Company

Anyone who’s read Jordan Thaeler’s publication Reforming Retail knows he likes to tell it like it is when it comes to restaurant tech.

No matter whether it’s the business model of payment processors or the difficulties of building an at-scale restaurant tech startup, you can find his no-holds-barred analysis on a wide variety of topics on a website he describes as, “a cathartic output to all the nonsense” he sees in the industry.

We thought it would be fun to have Jordan visit the podcast to talk about some of this nonsense and more. On this week’s show we discuss:

  • The challenges of the restaurant tech market and why there aren’t more publicly traded companies to support a restaurant industry with a total market size of over half a trillion dollars
  • Why point of sale is still the focus and starting point for digital transition in restaurants
  • The ghost kitchen and virtual restaurant market
  • Jack Dorsey’s fixation with crypto and the potential impact of Web3/crypto on restaurants
  • And a whole lot more!

Click play below to listen. As always, if you want more Spoon podcasts you can subscribe on Apple Podcasts, Spotify or wherever you get your podcasts.