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The Spoon

Daily news and analysis about the food tech revolution

Restaurant Tech

Nextbite’s Alex Canter Shares Insight on Virtual Kitchen Trends in 2022

This week I spoke with Alex Canter, the CEO and a co-founder of virtual restaurant company Nextbite, to hear his perspective on what 2022 holds for virtual kitchens and restaurants.

Nextbite, based in Denver, Colorado, uses a host kitchen model where it licenses a portfolio of delivery-only restaurant brands to restaurants with excess kitchen capacity. Restaurant partners can fulfill orders under these virtual brands to augment their restaurant’s dine-in and off-premise revenue. By taking on an additional restaurant brand, a restaurant can take advantage of their slowest hours, or even when they might not be open (such as the early morning or late night).

According to Canter, while many restaurants are slowly making their way back from the challenges of COVID-19, most are still not operating at full capacity. “Out of all the restaurants in the U.S., the only restaurant I can say confidently is operating at its full potential is In-and-Out,” said Canter. “They have a line out the door from the moment they open to the moment that they close.”

But this could all change in 2022, in part to new opportunities created by virtual brands. In 2022, “restaurants are really starting to understand their potential,” said Canter. “If you think about the kitchen as a manufacturing facility for food, I would say the average kitchen is probably operating at 30% output of what it could what it can do at peak.” After seeing the spike in virtual kitchens and delivery-only brands, restaurant establishments realize that they can cash in on this too. By streamlining online ordering and offering multiple menus and concepts, restaurants can reach new customers and different demographics.

In total, Nextbite has 17 brands that Canter said have been carefully created to consider emerging dining trends both inside and outside the U.S. People’s tastes and cravings change quickly, and can be easily influenced by social platforms like Tik Tok.

So what food categories and concepts will be successful in the virtual kitchen space in 2022? According to Canter, Pizza and Chinese food – the original delivery food categories – remain very popular. He also said breakfast foods for delivery are on the rise as illustrated by Nextbite’s survey which showed that forty-five percent of consumers ranked breakfast sandwiches as one of their favorite breakfast items to order. Nextbite’s celebrity taco concept, George Lopez Taco, does really well in suburban areas where it can be difficult to find an authentic street taco.

Wiz Khalifa and Nextbite’s restaurant concept, “Hot Box”

According to Canter, Nextbite works with celebrities like Wiz Khalifa and George Lopez because a small independent restaurant would never be able to connect with a high-profile celebrity. By using one of Nextbite’s celebrity-driven brands, they can tap into a celebrity brand’s following and demand.

Finally, Canter says food preferences vary depending on where you sell and who the consumer is.

Food preference and demand “change a lot when you go from major cities to the suburbs to college campuses. Depending on the demographic, some of our brands absolutely crush it on college campus markets and some do just okay in the suburbs. There’s a lot of variety happening, but I think people’s tastes are changing so faster than ever and we’re keeping up with that by constantly innovating and launching new concepts that are meeting that demand.”

Five Restaurant Tech Predictions for 2022

It’s food tech prediction week at The Spoon!

Each day we’ll publish five predictions for a specific area of the food tech universe, starting with restaurant tech.

The Ghost Kitchen Market Will See Growth in Hosted Models, Consolidation in Some Other Areas

The ghost kitchen and virtual restaurant markets were white-hot in 2021, with lots of venture funding pouring into a range of different concepts. However, one of the growing realizations about the ghost kitchen market is that while many of the offerings have had tech platform valuation multiples, a good number of them are facilities-based concepts that have cost economics closer to that of real estate business.

Because of this, I expect much of the action in 2022 will be in host kitchen concepts that leverage existing restaurant brands or create wholly new ones powered by social communities. The launch of TikTok Kitchen, powered by Virtual Dining Concepts’ and their host kitchen model, is one I’ll be watching closely to see if they can replicate the success they have with MrBeast Burger.

Finally, we can also expect to see some prominent players either exit or downscale their ambitions. Reef just announced they were closing one-third of their kitchens, likely in part due to the fallout from company’s continued health department certification problems. I expect we will see more of this in 2022.

Restaurants Will Deploy More AI, Automation & Cloud-Powered Labor to Offset Labor Challenges

Like many other restaurant chains, Checkers has struggled in recent years to find enough workers to cover the various shifts. Going forward, they won’t have to worry about that when it comes to manning the drive-thru as the company rolls out AI-powered voice bots to 267 of their restaurants.

This is only one example of how we’ll see restaurants embrace more technology to deal with what has become a permanent labor shortage in the restaurant space. Of course, automation and robotics will also be a part of the equation, but I think we’ll also see more restaurants find help through remote labor through platforms like Bite Ninja.

Restaurant Operators Will Jump Into Membership NFTs

Last week, we saw Gary Vaynerchuk and his team raise $14 million with the auction of membership tokens for their NFT restaurant set to open in the first half of 2023. With this success of Flyfish – and the rapidly rising prices of the the token in post-drop trading – I predict we’ll see lots of others try to use a similar template. Of course, many will fail, but I can see how NFTs could become a new way to finance restaurants in lieu of traditional financing for chefs with large followings.

Rethinking of Restaurant Concepts To Serve Off-Premise Driven Demand

The idea behind PizzaHQ is fairly simple: Utilize centralized kitchens powered by automation to feed a market where the vast majority of customers never expect to come into your restaurant. As off-premise continues to grow and real estate prices continue to rise, we can expect more new restaurant concepts that embrace different elements of dark kitchens, automation, contactless pickup, and more.

Digitizing of the Back of House

Restaurant kitchen operations can be messy and low-tech, but that is beginning to change as new digital platforms are enabling operators to better optimize their business. A number of startups are combining IoT, AI and software to bring about greater efficiencies in all aspects of a restaurant’s operations, enabling them to create the type of just-in-time models for food production that has existed in traditional manufacturing and other industries for decades.

Companies like Powerhouse Dynamics and their IoT-powered resource monitoring have been at it for a while, and now companies like Perfect Company are doing real-time monitoring of a kitchen to optimize labor allocation, ingredient portion sizing and other aspects of a kitchen’s operations. Other companies like Orbisk are employing machine vision to better help restaurants monitor and reduce food waste, and Miso Robotics and Hyphen are creating providing software and automation to help employees become more efficient.

Bonus Prediction: Data-Powered Personalization

As more customers engage with restaurants through apps, QR codes, and other digital formats, restaurants better understand who their customers are and what they like. While we may be a few years away from the age of truly personalized menus, I expect we’ll see increased restaurants harness all of the data they are gathering from restaurants to create better incentive programs to ensure better customer return rates and satisfaction.

Make sure to tune in tomorrow to hear our five predictions on food robotics for 2022.

Here Are The Details About Flyfish Club, Gary Vaynerchuk’s NFT Restaurant Opening in 2023

While we already knew some of the basic details about Gary Vaynerchuk and VCR Group’s NFT restaurant concept, we’ve learned more in the last week about how the whole thing will work.

Here’s some of what we’ve learned and my quick thoughts:

Token as Membership. At a high level, the Flyfish Club and its NFT membership is essentially a new, crypto-ized spin on an old idea: a member’s only dining club. To start, VCR initially made a total of 1,501 membership tokens for the Flyfish Club available to the public and reserved 1,534 for the company. Membership remains valid as long as a person owns the token. As just like most NFTs, the owner can resell the token (and many are already trying to do just that) on marketplaces like Opensea.

Flyfish Has Two-Tiered Membership. Flyfish has two types of tokens available: a Flyfish token and a Flyfish Omakase token. The Flyfish token, initially offered at 2.5 Ethereum (~$8,400), gets you into the restaurant and cocktail lounge while the Omakase token, offered at 4.25 Ethereum (~$14,300), gets you all that plus entry into the exclusive Omakase room.

Frequency and Guests: A token owner can eat at Flyfish pretty much whenever they want, but they’ll have to make a reservation first. Token owners will need to call ahead up to 14 days in advance for a table. Each token holder can make as many reservations as they’d like (capacity willing) per month, and each token member can bring the number of guests allotted for a specific table (for example, if they reserve a four-person table, they can bring three guests).

Flyfish Token Owners Still Have to Pay for Food. So you just spent $14 thousand on your new membership? That’s great and all, but you better have some left over to pay the bill. As with a traditional exclusive dining club, membership fees to Flyfish are just that, the cost of entry. Food, payable in US dollars, will be purchased for each meal just as if you were at any other restaurant.

Flyfish Has Raised $14 Million in Funds So Far. That’s right, $14 million in about a week. This is impressive and signals a potentially game-changing way to start a restaurant. Of course, there can only be one ‘first’ and not everyone has millions of followers like Gary Vaynerchuk. Still, I can certainly see a lot of celebrity chefs jumping into NFT-driven membership restaurants in the next couple of years.

The Tokens are Leasable. This is an interesting (and smart) twist: Flyfish permits token owners to lease them to others on a monthly basis. Leasing essentially turns a semi-liquid asset with a limited ability for near-term recurring revenue into a potential cash cow. Say, for example, you buy a Flyfish token for $4 thousand and lease it out to executives or curious upscale foodies for $1,000 a month. This would allow you to essentially treat a token as say you would a home you purchase to put onto Airbnb: An investment with potential for both long-term appreciation potential and near-term short-term recurring revenue.

There are a lot more details on the club’s FAQ page, which I would recommend reading. Overall, I think Gary Vee and crew have created a fairly common-sense initial framework for an NFT-as-membership concept that will undoubtedly become a template for others (of which I expect will be many).

If you’d like to learn more about how NFTs will chance the restaurant and food business, make sure to join The Spoon’s Food NFT/Metaverse mini-summit on February 1st. Registration is free (but limited), so hurry up and register today!

Checkers To Roll Out AI-Powered Voice Tech to 267 Restaurant Drive-Thrus By End of 2022

This week restaurant chain Checkers & Rally’s announced a deal with Presto, a maker of restaurant technology, in which the drive-thru focused chain will roll out Presto’s AI-powered voice assistant technology chain-wide by the end of the year.

The announcement comes after early trials showed a 98% order accuracy for the voice assistant technology. And now, according to Checkers President and CEO Frances Allen, the chain plans to roll out Presto’s voice technology to all 267 store-owned and operated locations by the end of 2022. She also indicated that many franchise locations are expressing interest in the technology.

“We had a vision two years ago that we wanted what I would call ‘Alexa at the drive-thru,'” said Allen.

And now, with Presto, they have it. According to Allen, about 80% of the chain’s total business comes through a drive-thru, so the company’s management felt transitioning to a high-accuracy automated drive-thru could significantly impact the business.

“Anything we can do to improve operations, streamline for our guests and our employees, we wanted to do.”

You can hear the Presto voice assistant taking an order at a Checkers drive-thru in the video above. The Presto bot sounds, well, bot-like as it says “Welcome to Checkers, this drive-thru microphone is monitored and recorded for quality assurance.” In fact, the entire exchange sounds like something you might hear on an automated customer service line.

Expedite’s Kristen Hawley thought so too and asked during the press briefing if customers could access live humans at any point during the interaction.

“There are 2% of orders where the system says ‘you know, I don’t quite understand that,'” said Presto founder and CEO Rajat Suri. “If the person is insistent on talking to a staff member or operator, the system will escalate to the human in the restaurant.”

When asked if the broader rollout of Presto’s technology will result in a permanent reduction of headcount, Allen said no. Instead, she said, Presto’s technology helps fill roles left empty by the persistent shortage of workers the entire restaurant industry has been experiencing since the pandemic began.

“Our motivation is to fill the gap between the people that are available to us working in restaurants and where we need to focus that human labor,” said Allen. “In an ideal world, maybe we have five people at any shift right now. We probably have three or four available. And so this (Presto’s voice assistant) is like a fifth person that is coming in to help.”

“Our motivation here is not to replace people with robots.”

Podcast: Creating the Anti-Ghost Kitchen Ghost With Kristen Barnett

While the fast growth of the ghost kitchen industry is exciting, it has some downsides. The industry’s rapid expansion has often meant low-quality food, a lack of transparency, and, even health code violations.

Kristen Barnett wants to change all that with her newest venture, Hungry House. Barnett, who was formerly with Zuul, wants to be transparent about where the food is made and who is making it and to have tight control over the quality. That means growth will be purposeful in the beginning as the company builds its business one kitchen – and chef – at a time.

Last month I caught up with Kristen Barnett to talk with her about her goal of building an anti-ghost kitchen ghost kitchen. You can hear our full conversation in today’s podcast. Just click play below or listen to it on Apple Podcast, Spotify, or wherever you get your podcasts.

Podcast: Talking Ghost Kitchens, Food Robots & Metaverse With Bbot’s Steve Simoni

Welcome to our new podcast, The Restaurant Tech Variety Hour.

Ok, so it’s really just the same old Spoon podcast. But for now, we’ll change the name because this week we’re all about restaurant tech. I’m joined by Bbot CEO Steve Simoni to catch up on everything that’s going on in the restaurant technology universe, from delivery & digitization, to ghost kitchens, virtual restaurants, food robots, and even the metaverse!

As always, you can find The Spoon podcast in Apple podcasts, Spotify or wherever you listen to podcasts, or you can just click play below.

Jet.com’s Founder Launches Wonder, a Logistics-Driven Bet on The Future of Restaurants

Today Marc Lore, the ex-CEO of Walmart.com and founder of Jet.com, formally announced the launch of Wonder, a ghost kitchen-driven delivery brand powered by high-profile chef recipes and cook-en-route delivery vans. The company currently is delivering food to four cities in Union County in northern New Jersey and has plans to expand to New York and beyond in 2022.

Wonder has reportedly raised an eye-popping amount of money for a company that only formally announced itself today. According to reports, the company has already raised over $500 million in capital, which likely means a valuation in the multi-billion dollar range. The impressive raise is due to Lore’s track record of building highly successful and disruptive e-commerce businesses. Lore’s Jet.com effectively became the core engine of Walmart’s e-commerce efforts once the retail giant bought the company for $3.3 billion in 2016.

The company has partnered with several high-profile chefs to develop recipes and lend their names to virtual restaurants that Wonder will turnkey. Seventeen restaurants and chefs have partnered with Wonder, including Bobby Flay, Nancy Silverton, Daisuke Nakazawa, and Marcus Samuelsson.

The company was founded in 2018 by Lore and was initially run by his brother Chad. However, in 2019, former Diapers.com exec Scott Hilton took over in 2019, and now, Lore – who had mainly been acting in an advisory capacity – is stepping as the company’s CEO.

According to a detailed report in Yahoo News, Wonder will utilize a licensing model that pays a one-time fee to chefs and will then operate out of a 40 thousand square food commissary kitchen where meals are assembled. Each chef’s restaurant brand is assigned its own delivery van, which is operated by a dedicated employee who responds to orders in the app. Once an order comes through, the runner begins preparing the meal in the Mercedes runner van custom-equipped with special oven. Meals are expected to arrive at the customer’s door within 30-40 minutes.

In some ways, the Wonder business is reminiscent of Zume, a one-time restaurant tech darling that also used a centralized production facility and cooked the food (pizzas in the case of Zume) en-route to the customer in a delivery truck. However, unlike Zume, Wonder’s oven-equipped vans take the food all the way to the customer’s door (Zume used a two-stage delivery network where scooters would deliver the pizza to the customer). Another major difference between the two is much of Zume’s focus was on building a robotic pizza-making machine, while Wonder utilizes in-house chefs to prepare their meals.

Lore’s vision of highly-centralized food production combined with a logistics network to reach the end customer is an evolutionary step forward from Zume and others, combining many of the various advancements we’ve seen in e-commerce, food delivery and ghost kitchen/virtual restaurant models over the past few years. While other regions like China have been developing highly-centralized food production and delivery models over the past decade, the US is beginning to play catch up via interesting new models built upon high-tech advances and an accelerated appetite for food delivery over the past couple of years.

While it’s too soon to say whether Lore’s new company will be as successful as his past, it looks like he has the capital, culinary partnerships and logistics know-how to give it a good run.

Now That Square is Block, Will Jack Dorsey’s Company Make it Easier to Buy Dinner With Bitcoin?

Here’s what we know: On Monday, Jack Dorsey announced he’s stepping down immediately from the top job at Twitter. On Wednesday, his payments company Square said it would change its name to Block and would, among other things, double down on cryptocurrency, blockchain, and building a decentralized payment system. I haven’t checked the news today, but I’m guessing he may have announced he’s creating a robot society or has plans for a teleportation system.

What does it all mean (besides the robots and teleportation)? For one, Jack Dorsey has had a busy week. But it also means the same guy who helped usher in real-time social media and democratize digital payments for small businesses may now be the one who helps make it easier for average Joe to buy everyday things with cryptocurrency.

Because right now, it isn’t easy. Crypto isn’t nearly as liquid as other conventional payment methods such as cash or credit. Sure, you can trade crypto without any problem – anyone with a Coinbase or Robinhood account knows that – but good luck paying for a bottle of mouthwash or buying a Big Mac with that wad of Dogecoin burning a hole in your crypto wallet.

So what can Dorsey do about it? Simple: with Square Block, he has all the different parts to make a payment value chain for crypto that will take it from what is mainly a highly volatile investment vehicle today to a street-spendable retail currency of tomorrow.

So what are Block’s business units?:

Square – the company’s original product (which will retain the Square brand) covers the digital payment portion of the equation. The company sells retail point-of-sale systems and has created restaurant-specific platforms and services.

Cash App – Started as Square Cash in 2015, Cash App is a personal banking, money transfer, and investment app for consumers. The app added crypto trading in 2018.

TBD – Announced earlier this year, TBD (long name TBD54566975) is a decentralized financial services unit. The launch of TBD followed other crypto-centric moves by the company such as creating a Bitcoin hardware wallet.

And perhaps most importantly, Dorsey and Block have the passion and conviction that cryptocurrency is the future and will eventually become our everyday currency. The company so much as said so when it began to buy and hold Bitcoin last year. “We believe that bitcoin has the potential to be a more ubiquitous currency in the future,” said Square’s Chief Financial Officer, Amrita Ahuja, at the time.

They also have the know-how. “We believe there needs to be a global native currency for the internet,” Dorsey said as his company launched the Cryptocurrency Open Patent Alliance (COPA) last year. Since that time, the company announced it would build a decentralized Bitcoin exchange in early 2021 and just last month TBD published a white paper detailing a protocol for such an exchange.

This is the type of hard, in-the-trenches work needed to create a more friction-free cryptocurrency financial system and, from all the looks of it, Block and Dorsey are intent on leading the way.

Once that happens, I imagine diners may someday more easily be able to buy dinner using cryptocurrency than was experienced by the folks behind Dinner Dao during their first-ever meal for the NFT dinner club. While the group really wanted to pay for dinner with the Ethereum they pooled together for their club, they had to resort to using a Coinbase credit card that converted the crypto to US dollars.

With the launch of Block, there’s a good chance that in five years (or maybe sooner), Dorsey and company will have put all the necessary tech, systems, and financial guide rails in place so when we buy a Big Mac, we can do so with crypto. At that point, Dorsey will have completed yet another society-shifting technological feat and, who knows, can finally get to work on that teleportation network we all want.

BentoBox Survey: Restaurants & Their Customers Embrace Direct Online Ordering

It’s clear that the COVID-19 pandemic changed the way restaurants do business. As a purveyor of online marketing and commerce solutions for the hospitality industry, New York-based company BentoBox recently decided to quantify some of those changes.

BentoBox saw a jump in business during the pandemic, with more restaurants seeking the online tools that the company offers. The team used data from that growing customer base to understand how the pandemic has reshaped the food industry since March 2020—and what might be next for restaurants.

“We mined all our data to see what it says about what’s going on in the market,” BentoBox’s Chief Marketing Officer Darcy Kurtz told The Spoon in a recent Zoom interview. “That’s been especially important these last couple of years, because things are shifting so quickly, and so dramatically.”

One of the biggest themes in the data was a rise in costs for restaurants, reflected in price increases on restaurants’ online menus. “The food itself is costing more, labor is costing significantly more when you can even get it, and real estate costs are significantly higher,” Kurtz said. And for restaurants, which operated on thin margins even before the pandemic, those price increases can sting.

One way to combat rising costs is by switching to the ghost kitchen model–and BentoBox saw a 100% increase in the number of ghost kitchens using its software platform this year, according to the company’s recently published report. The ghost kitchen model also has a relatively low cost of entry, allowing new restaurants to launch more easily without the need for heavy investment.

BentoBox’s pool of restaurant customers has grown by almost 60% since March 2020. Kurtz attributed that boom in business to a new emphasis on the importance of restaurants’ virtual experiences. “Today, your digital presence is really your front door,” Kurtz said. That’s especially true for ghost kitchens, which rely completely on their online presences to get discovered.

The majority of the company’s growth was driven by increased sales of online ordering tools. Before the pandemic, many restaurants didn’t have direct online ordering functions on their own websites, instead relying on third-party platforms like GrubHub and Uber Eats.

“But when COVID hit and there was only one way of getting revenue, restaurants added their own online ordering paths in droves,” Kurtz said. And diners have responded: According to the report, BentoBox found a 54% year-over-year increase in direct online order volume. The company also noted a 200% increase in restaurants’ monthly revenue through digital loyalty programs.

Kurtz said that loyalty to local restaurants drove these trends: “People have learned that third party ordering apps take a lot of money from their favorite restaurants. So once their favorite restaurants got online ordering, customers said ‘oh, I’ll just go direct because I know that’s best for my local restaurants.’”

With the Omicron variant rearing its head, there’s no way to be certain of how in-person restaurant business will recover in the near future. But BentoBox’s data is clear on one thing: Online ordering is here to stay.

“What we’re finding is that people are just eating out more. They’re still doing online ordering—and they’re doing it all week, not just on the weekends,” Kurtz said. “They found out how convenient it is, and they found out that delivery food can still taste great. So I think for restaurants, the great news is that there are new revenue streams and the total available market of diners has grown.”

But Kurtz predicted that restaurants may struggle to support that expanded business model in an ecosystem where labor is scarcer and inputs cost more.

Because the pandemic has shifted the rhythm of delivery demand, restaurants will also have to adapt to a new schedule. “The fact that Fridays haven’t rebounded is a signal that the hybrid work model is going to have an effect on the operational cadence of these restaurants,” Kurtz said. “Especially with restaurants that are in business districts, they’re really going to have to figure out how to shift their operations, because it’s not going to be a steady five-day-a-week sort of operation.”

With restaurants’ online presence growing in importance, we’re likely to see more growth for commerce and marketing solutions companies like BentoBox. And in turn, that growth should provide more consolidated data on the new shape that the industry is taking.

The Media Was Fascinated with a TikTok Video of a Robot at Denny’s. Here’s What it Means.

Maybe it was a slow news week. Perhaps it was the sight of pancakes hitching a ride on a robot at America’s late-night diner. Whatever the reason, it seemed like every news organization wrote the same story about a TikTok video of server-robot showing up to dish out breakfast at a Denny’s.

They all had a variant of the same headline: “Viral Video of Robot at Denny’s Sparks Debate.” From there, the authors sifted through comments made by TikTok viewers, some cheering the idea of faster service and lower tips, others angry about a robot stealing a job.

While the sudden interest in a social media post about a server robot may say as much about the modern media landscape as it does about the use of robotics at restaurants, the reality is Denny’s deploying robots is kind of a big deal. After all, as America’s most famous 24-hour diner, Denny’s holds a special place in our collective consciousness, a place where almost anyone can get a cheap meal as well as apply for – and often get – a job.

And it’s these two things that Denny’s represents – a place with affordable food and an employer of everyday Americans – that seemed to be in tension with one another when looking at both the comments on the video on TikTok as well as the framing by the media.

Media coverage of robotics in food service has been evolving over the past year, with news organizations going from gee-whiz articles about a cool new novelty to increasingly viewing the use of robotics as a direct result of hiring difficulties due to the pandemic. Of course, this new framing isn’t altogether wrong, as hiring has been difficult. Still, the reality is a bit more nuanced and has as much to do with fast-changing restaurant industry business models and changing consumer eating patterns as it does with hiring difficulties.

No matter the reason, the wider arrival of robotics at Denny’s and restaurant chains is raising the profile of these solutions and looks to be sparking a broader conversation about the impact of automation on the experience and the livelihoods of those in the service industry. This increased spotlight will also likely mean a more jaded framing of food robotics by the media, much like we’ve seen when it comes to their coverage of social media and privacy. While this isn’t necessarily a wrong reaction – it’s the media’s job to be skeptical – a pendulum swing is something the industry should be prepared for.

For the average consumer, the use of robots remains a curiosity. There hasn’t been – at least not yet – a rise of an organized Luddite anti-automation reaction to food robotics. However, the passion in some of the comments on TikTok could be the canary in the coalmine signaling one may be on the way.

As for companies like Bear Robotics – the provider of Denny’s server robot – business just continues to grow. I checked in with Bear Robotics COO Juan Higueros on how the Denny’s rollout is going.

“They have moved fairly quickly,” he said.

According to Higueros, it’s the operators on the front lines who are looking for answers. “What’s interesting is that this is a bottom-up movement by franchise owners that are really pulling for our solution.”

You can watch the TikTok video that sparked the conversation last week below.

Kristen Barnett Launches Hungry House, an ‘Anti-Ghost Kitchen’ Ghost Kitchen

It seems a day doesn’t go by nowadays without a new ghost kitchen concept popping up.

While all that growth can be exciting, the ghost kitchen land grab has its downsides, at least according to Kristen Barnett. The former COO of ghost kitchen startup Zuul told me today in a video call that the industry’s rapid expansion has often meant low-quality food, a lack of transparency, and, well, just way too many chicken wing restaurants.

To counter this, Barnett has launched a new company called Hungry House, which she describes as an ‘anti-ghost kitchen ghost kitchen.’

What does that mean?

“We are actively being intentional about some of the more negative sides of the ghost kitchen industry that the public has come to know,” said Barnett. “Hungry House really was created as a reaction to that, seeing a way to flip those maybe less than ideal characteristics of the industry on its head and say ‘No, what happens if we infuse transparency, we tell customers it’s Hungry House making the food, we have a physical storefront that people can actually order at and see the kitchen and see the team?'”

To do all that, Barnett’s plan is to be transparent about where the food is made and who is making it and to have tight control over the quality. That means growth will be purposeful in the beginning as the company builds its business one kitchen – and chef – at a time.

“I wanted to create Hungry House as the partner of choice for what I believe to be the next generation of culinary leaders who have different career paths than in the past.” According to Barnett, that next-generation leader might be a food truck operator or someone who has proven themselves a culinary innovator on social media but may not want to run a full restaurant.

One such creator is Woldy Reyes.

“Woldy is this incredible Filipino chef who has really well attended pop ups throughout Brooklyn,” said Barnett. “He’s known for his signature menu items, yet he’s been running a catering business, not necessarily operating restaurants, and he’s been able to do all of that. So it made a lot of sense for him as someone who has really well developed recipes, but didn’t necessarily know exactly what it would take to run a restaurant and figuring all of that out wasn’t necessarily in his career plan.”

Barnett’s approach to creating high-touch kitchens and working closely with emerging voices with strong culinary visions is a marked contrast to the high-profile celebrity virtual restaurant concepts being spun out these days.

“These celebrities are definitely capitalizing on great content,” said Barnett. “But is it necessarily going to be executed in a way that creates true long term value in a food brand? I don’t think so. I don’t think many of these are going to be around.”

Barnett’s plan is slowly expand Hungry House over the next year into Manhattan and see where it goes from there. She said the company would be raising a seed round to grow the team, build out their tech stack and expand into new cities.

At the top of her list? LA, New York and Miami.

“With those cities locked down, really anything as possible when it comes to using our model to launch high quality brands that come from either chefs, celebrities, CPG brands,” said Barnett. “That’s the type of world I want to create – where there is true innovation, there are new things being launched, and new stories being told.”

You can watch my full interview with Barnett below:

The Spoon Talks with Hungry House Founder Kristen Barnett

Restaurants, Welcome to the Metaverse

Restaurants, welcome to the metaverse.

It’s not just a vision that’s 5 or 10 years away. It’s here now. 

For Halloween, Chipotle created a virtual restaurant inside the online game platform Roblox to give away $1 million in free burritos. Fans and gamers could enter the restaurant, experience a Halloween-themed Chipotle, and get a promo code for a free burrito in the real world.

This is a preview of what we can expect to see in the years to come. The next generation of diners will order their food and discover where they are going for their next night out from inside augmented and virtual worlds created by the likes of Epic, Roblox, and Facebook. And the best hospitality companies (and hospitality tech companies) will not wait too long to adapt.

Here are seven ways that restaurants will change in the metaverse:

  1. Marketplaces – apps won’t be the primary ordering channel anymore once more people begin to participate in the metaverse. Companies like Doordash, UberEats and GrubHub will need to rethink their strategy as ordering and discovery will be embedded in more interoperable experiences. Doordash moving to become a pure logistics API is smart because they will be protected if they lose the ordering portal in the metaverse — someone still has to deliver the food after all.
  2. Marketing – brands will start integrating food into virtual experiences. Instead of traditional email marketing, restaurants will be able to recreate their physical space in the metaverse and invite guests from around the world. The metaverse will create new opportunities to test promotions and loyalty programs, just like Chipotle showed by launching their Boorito promo as digital-only this year.
  3. Reservations – the interface for booking a table will completely change. Diners will do a quick virtual tour before booking the specific table they want. Pricing will be dynamic for the very best tables.
  4. Delivery – ghost kitchens will be the building blocks of group ordering in the metaverse. You’ll be able to share a meal with your friends delivered to you at the same time even if you are halfway across the globe.
  5. QR codes – QR codes will be more than just menus. They will be the access point for augmented reality. Friends from the metaverse who can’t make the night out will be able to join in on the fun and send your party a bottle of champagne to celebrate.
  6. Payments – while we expect restaurants to always take dollars, we think the metaverse will have a few different major cryptocurrencies that rise to the top over the next 5 years. The currency that a restaurant accepts will be part of its identity and marketing efforts.
  7. Membership – members-only hospitality experiences like SOHO house will extend their house into the digital realm. Members will have access to exclusive digital worlds if they own the right (non-fungible token) NFT to get in the front door. These NFTs will be traded on open marketplaces as keys to different clubs.

Most of us love sitting down with friends at a restaurant with a chill vibe and having a great conversation in the real world. The metaverse will not change that. Restaurants will continue to provide those unique experiences. But within the metaverse, restaurants will be able to reach more guests that might not always be able to show up in person.

Steve Simoni is CEO of BBot, a maker of smart ordering technology for restaurants and the hospitality industry.