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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. 

SKS 2021: Meet Blix, A No-Cleanup Smart Food Maker

We’re just five days away from SKS 2021, which means it’s time to preview another Startup Showcase finalist.

Today’s featured startup is Blix, a company which makes a no-prep, no-cleanup smart food maker. The Blix food maker uses a patent-protected smart lid which incorporates an integrated blade and RFID tag to enable the user to make a variety of instant meals. The user just adds liquid into the mixing cup, pours in pre-prepared ingredients from a Blix meal pouch and the Blix machine prepares the food in minutes.

Watch The Spoon’s Carlos Rodela discuss the Blix story with company founder Ariel Sterngold. If you’d like to connect with Ariel at Smart Kitchen Summit, get your ticket today!

The Spoon Interviews - Blix

Startup Showcase Alumni Incredible Eats Lands Investment on Shark Tank

Dinesh Tadepalli has landed his shark.

Tadepalli, the CEO of Incredible Eats, appeared on Shark Tank last night to pitch his company and ended up getting four offers from various sharks before walking away with an offer from Lori Greiner for 15% of the company. Watch:

Incredible Eats Has 4 Delicious Offers - Shark Tank

Regular Shark Tank watchers will know four offers are a lot, but it’s not all that surprising since Incredible Eats checks many shark boxes: an easy-to-understand product, proven success, and mission-driven.

That easy to understand product is edible cutlery that replaces disposable plastic spoons and forks. IncredibleEats’ edible spoons and sporks come in both sweet and savory versions – chocolate and vanilla for desserts, oregano chili and black pepper for soups and such – and in both large and small versions.

Here at The Spoon, we’re always excited to see food tech innovators on Shark Tank, but doubly so when they are alumni of our own startup pitch contest. Tadepalli pitched his idea for edible cutlery at the Smart Kitchen Summit in 2019, winning the Future Food portion of the pitch session. It was still early days for the company called Planeteer at the time, but the judges loved the idea of cutting down on plastic waste with an edible spoon or fork.

Tadepalli plans to use the money to hire more employees and ramp up production. He’ll need it. With what amounts to millions of dollars worth of free advertising in the form of a Shark Tank appearance and a consumer product expert like Greiner in his corner, there’s no doubt he’ll start selling lots of spoons and sporks through multiple channels very soon. And all that’s before they even get to food service – restaurants and cafeterias – which is likely be an even bigger opportunity than the consumer market.

If you’d like to watch Tadepalli’s award winning pitch at Smart Kitchen Summit 2019, click play below.

SKS 2019: Future Food pitches

If you want to predict who could be the next Incredible Eats, see our post on this year’s finalists for the Smart Kitchen Summit Startup Showcase here.

Meet the Innovators Selected as Finalists for the 2021 SKS Startup Showcase

Every year, we put out a call for innovators who are using tech to disrupt and ultimately improve the way we eat, prep and interact with food. We receive Startup Showcase applications from all corners of the global food system and get to learn about the ideas that will spark change and help shape the future of food and the kitchen. In the end, our editorial team selects 10 or so finalists who represent the most unique and transformative ideas in food tech.

In its 8th year, the SKS Startup Showcase has served as a launching pad for some of today’s most interesting food tech startups. With companies as diverse as smart stove and food delivery startup Tovala, food delivery packaging startup SavrPak, and upcoming Shark Tank contestant IncrEDIBLE Eats, alumni of the Showcase are making an impact across the food innovation landscape.

Each finalist will get a chance to pitch on stage at the 2021 Smart Kitchen Summit, happening virtually in just a few weeks on November 9th and 10th.

If you want to see the finalists pitch and have a chance to network with some of the top leaders and newest startups in food and kitchen tech, grab your ticket to SKS here.

Let’s meet the 2021 Startup Showcase Finalists.

  • AIGecko is powering a touchless checkout kiosk with their AI-powered food recognition API. Customers can select food and place their selection at the kiosk and using artificial intelligence that drives both facial and food recognition at the kiosk. Guests can also get the nutritional information of their dish and get connected to a nutrition expert through the connected app.
  • Blix is a smart food maker that promises to eliminate both the preparation and the cleanup of cooking a meal from scratch. Blix includes a smart lid with an integrated blade and RFID tag to ensure consistent results each time a dish is made.
  • Castiron is a central hub and platform for independent kitchen-based chefs to sell their creations direct to customers. It also includes resources and creator community to support and grow their business. Castiron says their customers include bakers, juicers, jammers and similar culinary artisans to market and sell their goods.
  • Chocomake is a smart home chocolate maker and ingredient kit developed by a female-led startup launching in 2022. The appliance allows users to create custom varieties of chocolate in different shapes, composition and texture. Chocomake can help with allergies and dietary restrictions and can produce vegan, non-GMO and sugar-free chocolate with easy prep and cleanup.
  • Clew is a countertop appliance that grinds, heats and dries home food waste in two hours and transforms it into shelf-stable material that can be refined into compost or place into a recycling stream for further processing. After processing through the Clew appliance, the amount of waste material is reduced by mass by over 80%. Clew is working to produce an early prototype.
  • Mezli is building containerized robot restaurants called “auto-kitchens.” The “restaurant-in-a-box” business leverages automation and shipping containers to power a fully autonomous kitchen able to cook, plate and pack each dish. Mezli founder and CEO told The Spoon that their auto-kitchens can go 48 hours or make 300 meals (whichever comes first) before requiring servicing by a non-robotic worker.
  • Natufia is an integrated and automated indoor smart hydroponic kitchen garden created for at-home food growing. The smart kitchen garden can grow up to 32 simultaneously with automatic watering and lighting and gives users of 40 seedpods. Natufia customers can grow everything from leafy and microgreens to vegetables and flowers.
  • Ottonomy creates autonomous robots that enable contactless deliveries of food and retail products. Ottonomy robots require zero human supervision for navigation and can operate in both indoor and outdoor environments. The company’s proprietary software claims to allow for fully autonomous operation in crowded and unpredictable environments including in airports, malls and office buildings.
  • Culineer is a platform where farms can educate and communicate with consumers looking for locally produced foods. While consumers often don’t know how to cook everything they may purchase direct from farms, farmers don’t have resources and time to provide food level education. Culineer fills that gap with recipes, harvest updates, education and peer support; this gives farms increased customer satisfaction and retention.
  • WSVC is an appliance company that has invented a new type of multi-purpose microwave oven that features traditional microwave cooking as well as Waterless Sous Vide Cooking (WSVC). WSVC cooks food with low consistent heat similar to sous vide but without the water bath and vacuum seal. WSVC will debut for the first time at the 2021 Smart Kitchen Summit.

Meet The Spoon’s Restaurant Tech 10

The restaurant industry has changed drastically over the last 18 months when it comes to tech. What was once a sector slow to change and reticent to embrace digital is now practically at bursting point in terms of the many technological solutions available to restaurants. As food tech investor Brita Rosenheim recently wrote, “the past 18 months, technology solutions across the restaurant and hospitality industry evolved at such a fast pace that keeping up with changes proved challenging, even for those of us who work in the space. This rapid rate of adoption in the industry caused even the technophobes in hospitality to rapidly embrace tech solutions. “

Picking just 10 companies from the hundreds out there was a Herculean challenge when it came time to make this list. From virtual restaurants to maintenance management solutions to making better use of data, there’s no end of innovation in the restaurant tech sector these days. Our list is a tiny sliver of that innovation, showcasing what we believe are some of the most unique and intriguing companies shaking up and rethinking the restaurant business. Some of these companies will be at our upcoming Restaurant Tech Summit (make sure to get your ticket!), some we’ve written about recently, and some we are just getting to know.

It goes without saying, of course, that this isn’t an exhaustive list, and if you have a restaurant tech company you’d like to get on our radar, drop us a line anytime.

In no particular order, here are The Spoon’s Top 10 Restaurant Tech Companies:

Too Good to Go

When it comes to eliminating food waste, Too Good to Go was too good to not include on this list. The Denmark-based company partners with hotels, restaurants, supermarkets, and other businesses that have surplus food items at the end of each day and sells that food at a discount to consumers, who pick up the food at a designated time. Too Good to Go started in Europe, but raised $31 million and expanded into the U.S. this year. Businesses win because it turns leftover foods into revenue. Consumers win because they get good food at a discount. And the world at large wins because there is less food waste going into landfills. 

86 Repairs

You can’t run a restaurant without a fridge (or stove, or electricity), which means maintenance and repair management will always be relevant in the biz, no matter how many pandemics you throw at it. Chicago, Illinois-based 86 Repairs is leading a new generation of companies helping to make the management of maintenance and repair tasks a little less burdensome on restaurants. The platform digitizes information about all a restaurant’s equipment and coordinates troubleshooting, warranty checks, booking technicians, and other tasks. The idea is to give restaurants one central location at which to view all data about all maintenance, even for large, multi-unit chains with thousands of units.

Bite Ninja

The restaurant labor shortage will go down as one of the major issues — probably the major issue — restaurants faced in 2021. One of the most intriguing solutions to the issue comes from a company called Bite Ninja. In essence, the Bite Ninja platform lets restaurants outsource their staffing needs for the drive-thru lane to gig workers that take orders remotely. Drive-thru customers see a face on a screen and order as they would normally. They may not even know the person taking the order is probably sitting at their kitchen table instead of standing inside the restaurant. Bite Ninja’s founders say the platform can increase order accuracy and upsell rates for restaurants, while workers don’t actually have to report to a physical location to clock in. In the future, the tech will be available for more uses than just the drive-thru, including front-of-house kiosks, curbside pickup, and phone orders.

ConverseNow

ConverseNow currently creates conversational AI assistants for restaurant drive-thrus. In use at 750 restaurant locations in the U.S, ConverseNow says its AI achieves 85 percent order accruacy and bumps check sizes up by 25 percent. But ConverseNow is about so much more than just helping automate the drive-thru. The company wants its software to be the virtual plumbing for all of a restaurant’s digital ordering, connecting the drive-thru, mobile ordering, phones, kiosks and more. If it can achieve this, ConverseNow will convert many restaurant operators over to AI. 

Crave Collective

When The Spoon got a virtual tour last year of the Crave facility in Boise, Idaho that serves 16 virtual restaurant concepts, it felt like a look into the future of what restaurant/food delivery design could look in Metro areas. Not only were the physical attributes like a conveyor belt system that shuttled meals towards the front for delivery and a customer pick up area interesting, but Crave’s custom-built tech stack and in-house delivery drivers were indications that the company had built a facility and business model tailored towards the virtual brand era. The company wants to take it’s concept to four additional locations this year, and 10 by 2022.

Slice

While it’s easy to think most pizza restaurant shops are savvy at online ordering, the reality is that the typical independent sees only about one in five pizzas ordered online compared with three out of four for Dominos. Slice saw this as an opportunity and created a consumer app to help put independent pizza shops (16,000 of them so far) on solid digital footing to compete with the 800 pound gorillas in Dominos and Little Caesar’s. But what helped Slice make this list was their acquisition of POS startup InStore. Before Instore, Slice helped indies enter into the world of online ordering. Now, Slice Register (the POS based on Instore) enables the small guys to level up to the big guys and create a true multichannel pizza business with loyalty programs and integrated online/offline marketing programs.

Qu POS

The past decade saw restaurant point of sale move into the cloud and adapt features like pay-at-table and integrated online ordering, but the virtual brand explosion may be the biggest test yet for these systems. Qu POS is betting big on a virtual restaurant future with their KitchenUP platform, which acts as a lightweight operating system for ghost kitchen/virtual brands with unified management of multichannel order management, reporting, third-party delivery integration and other features built into an API-first architecture. FranklinJunction is utilizing KitchenUp across its network of 500 “host kitchens” to help power virtual concepts for such brands as Nathan’s and Frisch’s Big Boy.

Ordermark/NextBite

An arguably bigger trend than ghost kitchens this year has been restaurants finding and leveraging underutilized kitchen space in which to run delivery-only restaurant concepts. NextBite, a company created by restaurant tech company Ordermark, helps restaurants find that space and launch those concepts. The platform operates a number of virtual/delivery-only brands restaurants can add to their existing business and in the process make some incremental revenue. The company raised a whopping $120 million for this concept at the end of 2020, and has since launched more than 15 virtual brands in thousands of kitchens around the country. 

Manna

Look! Up in the sky! It’s your latte! Drone food delivery seems like sci-fi, but Manna is making it a reality right now. Earlier this year, the company was doing 50 to 100 drone deliveries a day and it’s prepping to launch service in a second Irish city. Though there are still regulatory hurdles to overcome, drone delivery could be a boon for restaurants because it delivers meals in minutes without needing to put a full-sized delivery car on the road. Drones are starting to take flight around the world, and Manna is helping the industry take flight. 

Delivery Hero

Delivery is table stakes at this point for the restaurant industry, but we pub Delivery Hero on this list because of all the big-name services out there today, it has one of the more noteworthy approaches to the concept. In addition to operating restaurant food delivery services around the world (via a bunch of different subsidiary brands), the Berlin, Germany-based company has also launched its own VC fund to foster food tech innovation, opened an education program to teach coding to underserved individuals, and, most recently, kicked off a new initiative to provide its restaurant partners with sustainable packaging. All these efforts point towards the possibility of a food delivery industry that’s not only faster and more efficient, but also more inclusive and sustainable.

S2G Ventures Unveils the First Five Investments for Its Oceans & Seafood Fund

S2G Ventures has invested in five different companies as part of the inaugural investments for its $100 million Oceans & Seafood fund. The point of the new fund is to support companies and entrepreneurs building new systems, solutions, and processes geared towards the “blue economy.”

The World Bank defines the blue economy as “the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs while preserving the health of ocean ecosystems.” In other words, it calls for a more sustainable approach to doing business when it comes to our oceans and the life within them. Multiple areas are touched by the blue economy, including maritime transport, renewable energy, fisheries, and waste management strategies. Even tourism could play a role.

Via a statement, S2G Managing Director Kate Danaher called sustainably managed ocean ecosystems “a pillar of global environmental recovery, a driver of economic growth, and a foundation for food security and human health.” The firm says its Oceans & Seafood fund is the largest in North America. It will invest in companies helping to “build marine ecosystem resilience, de-risk the ocean supply chain, maximize the value of natural resources and support animal and human health.”

Thus far, companies in S2G’s group of inaugural investments are:

ReelData. Based in Canada, the company makes software it says can increase land-based aquaculture’s profitability, sustainability, and scalability. Initial products include AI-informed feeding systems, biomass estimation and health/stress analytics.

ViAqua Therapeutics. The Israel-based biotech producer makes orally administered RNA-based treatments for shrimp to improve their resistance to disease. S2G says the company has the potential to apply its technology across “all aquaculture species and platforms where cost-effective RNA production and novel delivery systems (such as nano and micro encapsulation) are needed.”

Moleaer. U.S.-based Moleaer has nanobubble tech that can treat water systems, including removing harmful pathogens and increasing recoveries of natural resources. 

Additionally, S2G has invested in two undisclosed companies. One is an “ocean surveillance company” that will track dark vessels and illegal maritime activity. The other is a “fishmeal and oil technology company” based in the U.S. that holds proprietary zero-waste fishmeal technology that could be applied to other parts of protein production in fisheries.

The focus of the overall fund will be divided into three areas: ecosystem resillience, resource optimization, and consumer centricity. S2G said it believes focusing on these areas will improve ocean health while still “generating above average financial returns.”

Dishpatch Raises £10M for ‘Finish at Home’ Meal Delivery Service

Dishpatch, a finish-at-home meal kit service based in the U.K., has raised £10 million (~$14 million USD) in seed funding from Andreessen Horowitz and LocalGlobe, who co-led the round. Other participants to the round include Stride, Entree Capital, Entrepreneur First, and several angel investors.

The Dishpatch service is a cross between a meal kit company and a restaurant delivery service. The company works with local restaurants to offer consumers a pick of weekly meals that are delivered on Fridays. All food is fully cooked at the restaurant but arrives to customers’ homes cold. Customers themselves handle the final heating and preparation, aided by detailed instructions that accompany that food. 

Dishpatch, which has called itself “the antithesis of Deliveroo,” launched during the pandemic as an in-between option for off-premises restaurant meals that’s not quite restaurant delivery but not a box of raw ingredients a la HelloFresh, either.  

The finish-at-home meal kit concept as a whole became popular in 2020 during the pandemic. For many restaurants, particularly higher end ones, throwing a fully prepped hot meal into a takeout box and handing it over to a delivery courier was less than ideal. However, with dining rooms closed for the majority of 2020, businesses had to make revenue from other channels. Finish-at-home meal kits provided a way for restaurants to participate in delivery without compromising the integrity of their food concepts. Many of the restaurants now on Dishpatch’s platform started working with the company, which was founded in 2020, for exactly this reason. 

Dishpatch currently has 25 restaurant signed to its platform that delivery to the London area — over 50 miles from the city center in some cases. Funds from this seed round will allow 20 more restaurants to join the by the end of the year. The company will also further develop its tech, marketing, distribution, and customer service.  

Barilla’s Venture Arm Is Launching the Fourth Cohort of Its Good Food Makers Accelerator. Applications Are Open

Pasta-maker Barilla’s Venture Group, BLU1877, announced this week that applications are open for the next cohort of its Good Food Makers accelerator. According to a press release sent to The Spoon, the forthcoming program will be BLU1877’s fourth since starting the accelerator in 2018 with San Francisco, California-based incubator Kitchen Town.

Past participants to the eight-week Good Food Makers program include Plant Jammer, Renewal Mill, and Regrained, among others. Typically, each startup chosen to participate in a cohort receives $10,000 to use for business growth during the program as well as mentorship opportunities and the possibility of further collaboration with Barilla. Those chosen for cohort four can expect the same set of benefits.

For this latest cohort, Good Food Makers is looking for companies developing solutions for the following:

  • Circular Economy: Companies developing circular-economy solutions for upcycling pasta regrind, wheat brand, and bread crust
  • Better Food Delivery: Solutions that improve the preparation, logistics, automation, packaging, and recipe development of food delivery
  • Digital Nutrition Guides: Digital platforms that address the nutrition and sustainability of food items
  • Easy Meal Routines: Healthy meal kits and services

Good Food Makers has always run small in terms of the number of companies it selects for each cohort. This time around, the program will pick one startup for each of the above topic areas. In addition to specializing in one of the topic areas, applicants should also have, according to the announcement, “proven business results” and the “ability to demonstrate transformative ideas and approaches to supporting a better food system.” As with past cohorts, Kitchen Town will help with the selection process.

The program will kick off in September. For now, all programming is virtual, though BLU1877 notes that there is a possibility of in-person collaboration depending on the location of the chosen teams and current COVID-19 regulations.

Applications are open through August.

A Spanish Dairy Company Has Launched a Startup Incubator to Help Cultured Milk Companies

Pascual Innoventures, the open innovation arm of Spanish dairy company Calidad Pascual, has launched what it says is the world’s first incubator program for cellular agriculture in the dairy industry. Dubbed Mylkubator, the program will select and work with startups hoping to change the dairy industry through the development of alternative proteins. 

The program, which is supported by investment network Eatable Adventures and technology partner CNTA, will choose up to 10 startups to join the six-month hybrid program. Either in-person or virtually (or both), companies will work with mentors and get access to Pascual’s R&D facilities to develop and test their products. 

On a high level, cultured milk is created by growing mammary gland cells in an external environment (like a bioreactor) that mimics the one found inside mammals (like a cow). Micronutrients get converted into milk, which can then be harvested and purified. The process requires expertise in a number of different areas, from cell-growth media to machine learning modules that can optimize the production process. Different types of milk, including cow’s milk and human breastmilk, can be made from this process.

To that end, novel growth media, cell-growth techniques, and improvement of cell lines are among the topics the program says it is looking to find companies. And in addition to cellular ag, startups working with fermentation-based solutions or developing applied technologies like machine learning and biorecators are also welcome to apply. 

In the realm of alternative protein, the number of well-known companies currently developing milk analogues via cellular agriculture is still pretty small, particularly in comparison to the glut of cell-based meat makers. Turtle Tree Labs and Biomilq are the most well-known companies at this point.

On the other hand, companies like Perfect Day and ReMilk make milk analogues via fermentation, a process now seen as the third-pillar of alternative protein.  

Startups working with both methods are invited to apply for Mylkubator’s program. Those chosen will get a chance to prototype, test and scale their products, in addition to meeting with mentors and potential investors. The application process is open now.

Big Idea Ventures Unveils the Third Cohort for Alt-Protein Accelerator

Food tech investment firm Big Idea Ventures (BIV) this week unveiled the companies chosen for Cohort 3 of its alt-protein-focused accelerator program. Fifteen early-stage startups will participate in the five-month-long program, either in NYC or Singapore, according to a press release sent to The Spoon.

BIV looks for companies developing both plant-based and cultured protein products and ingredients. Food tech companies related to the alt-protein space are also considered. Past program participants include companies from the plant-based protein space, cultured protein, and corresponding technologies. Evo, MeliBio, and WTH Foods have all taken part in the program.

BIV says its third cohort is focused on sustainably feeding a growing world population.To that end, chosen companies include:

NYC Program:

  • AquaCultured Foods: A seafood alternative using microbial fermentation
  • The Frauxmagerie: A plant-based cheese using cultures without dairy
  • Innocent Meat: A B2B cell-based meat production system
  • incrEDIBLE: An edible cutlery to reduce single-use plastics
  • Blue Ridge Bantam: A cell-based ground and whole-cut turkey
  • New Breed Meats: Plant-based burgers, grounds and sausages
  • Plant Ranch: Plant-based Mexican meats

Singapore Program:

  • Angie’s Tempeh: Tempeh fermentation technology to create protein-rich foods
  • Animal Alternative Technologies: Cell-based meat services including bioreactors and software
  • Farmsow: A B2B ingredients company developing sustainable alternatives to tropical oils and animal fats
  • GreenGourmet Foods: Plant-based dairy 
  • Haofood: Alternative chicken protein from peanut focused on the Asian market
  • MAD Foods: A plant-based beverage 

Two companies — plant-based yogurt maker Wellme and a food tech startup called Meat. The End — will participate in both NYC and Singapore.

Beside $125,000 in cash investment and $75,000 on in-kind investment, chosen companies also get access to co-working space, including test kitchens, for the duration of the program, as well as mentorship and networking opportunities.

BIV is also currently taking applications for Cohort IV, which will take place during summer 2021. Applications are taken on a rolling basis.

StartLife Announces 8 Agrifoodtech Startups in its Sixth Cohort

Dutch agrifoodtech accelerator StartLife announced the eight startups that will be part of its sixth cohort starting next month.

The selection of startups reflects StartLife’s mission to accelerate agrifoodtech startups that build a more sustainable food system. From the press announcement emailed to The Spoon, the new companies in the cohort are:

  • CellulaREvolution (United Kingdom) – Continuous cell-culturing technologies
  • Metabolic Insights (Israel) – Novel biopesticides based on botanical molecules
  • Enzymit (Israel) – Designing novel enzymes with computational algorithms 
  • Revo Foods (Austria) – Producing plant-based seafood with 3D food printing
  • Sera Intelligence (Switzerland) – AI-driven horticultural consultant in your pocket
  • Blomitec (Netherlands) – Breeding disease-resistant crops
  • Cano-ela (Netherlands) – Plant-based ingredients less refined and more functional
  • Helia Biomonitoring (Netherlands) – Sensors for real-time biomolecular monitoring

Spoon readers may recognize two names off the list from our previous coverage. CellulaREvolution raised a $1.37 million Seed round of funding last month for its serum-free meat cultivating technology. And Revo Foods changed its name from Legendary Vish last month, and announced it was making plant-based smoked salmon strips and smoked salmon spread.

The StartLife accelerator programs runs for 12 weeks, and provides business development support, mentorship, non-dilutive funding and access to startups, corporate leaders and investors. The press release didn’t specify how much of the program will be virtual. In 2020, the pandemic shifted participation in many accelerators around the world from in-person to remote. As vaccines roll out and the pandemic recedes, we will see how many accelerators go back to strict in-person attendance.

After successful completion of the program, StartLife offers a €25,000 (~$30,000 USD) pre-seed loan with the potential of another €50,000 (~$60,000 USD) after validation of a startup’s growth strategy. StartLife says that for truly exceptional startups, it offers loans up to €250,000 (~$300,000 USD).

Suvie Debuts Second Generation Countertop ‘Cooking Robot’

Suvie, a maker of smart automated cooking appliances for the home, has debuted its second generation appliance, the eponymous Suvie 2.0.

So what’s different about the first and second generation Suvie? A whole bunch.

First things first: Suvie 2 is a heck of a lot smaller. That’s mainly because the second generation appliance has reduced the Suvie from being a four-chamber cooking appliance to a two-chamber machine. This change is made possible because each cooking chamber is now multifunctional, which means instead of having chamber specifically for sauce, protein or veggies, each of the two chambers can broil, steam, sous vide, slow cook as well as roast and bake (these last two cooking modes are new to the Suvie 2).

And just like the first machine, the Suvie 2 has a built in compressor-based refrigerator that chills the food until is is ready to cook. This was one of the draws of the original Suvie — being able to store your food safely in the machine while you were out all day, until it was time to cook it.

While the Suvie 2 has a smaller countertop footprint, the cooking capacity per chamber has actually gone up. According to Suvie CEO Robin Liss, cooking pans are 21% larger than in the previous generation.

To help slim down the new appliance, Suvie also removed the “starch’ chamber and created a separate, optional Starch Cooker. The new add-on, which Liss affectionately called “starchie” (but insisted is not the official name), features the same “patented” autodrain capability and can cook rice, pasta, beans and other starchy foods.

The new Suvie will be available for a pre-order price of $399 for the main unit, and $300 for the starch cooking add-on. MSRP for the core unit will be $800. According to Suvie, the company will also offer a significant discount to customers of the first gen Suvie who want to upgrade.

Just as with the first gen appliance, the user will be able to cook Suvie-originated meals or their own food, but with the addition of quartz broiler heating elements (the same type of heating elements used by the popular Breville toaster ovens), which enables more consistent heating and allows for the user to bake and broil food.

To fund the rollout of the new Suvie, company Liss told The Spoon the company has raised a $11 million in seed funding (they previously has raised $725 thousand on Kickstarter). That funding will also help the company continue to expand its associated meal service.

The new funding and the debut of a second generation Suvie is a bright spot in a kitchen tech market that has seen some consolidation over the past few years. Since Electrolux’s acquisition of Anova for a quarter of a billion in 2017, the few exits for venture-funded kitchen tech startups have relatively quiet (like ChefSteps, Brava and June), while others – like Nomiku and Sansaire – have shut their doors.

Interestingly, the two startups still making a go of it in this space both eyed the pairing of cooking appliances with meal delivery, a business model that has the potential of long-term recurring revenue for companies also competing in what is a highly cost-competitive hardware market. For its part, Tovala announced a new $30 million funding round this month, less than a year after its previous round.

If you’d like to buy the new Suvie, you can pick it up now and, according to Liss, the product will begin shipping in twelve to fourteen weeks.

You can see the Suvie in action below.