In 2019, Benson Tsai left his job building rockets for SpaceX to start a company building a different type of technology-powered vehicle: a truck with a pizza robot inside that cooks and delivers finished pies to customers.
“My parents were immigrants from Taiwan, and they opened a restaurant when they first moved to the U.S., selling fish and chips of all things,” Tsai told The Spoon in a recent interview. “But food has always been central to my life, and it’s been my one real passion.”
While he was at SpaceX, Tsai would go off campus during lunch with his coworkers to explore neighborhood restaurants. Before that, he started his own electric truck company, his first venture-backed startup. With his latest startup, Stellar Pizza, he can finally combine his love for food and expertise in engineering.
According to Tsai, the main problem that Stellar Pizza solves is the rising food costs in the United States. The USDA found that the restaurant purchases consumer price index, a measure of inflation, rose 0.7 percent in January 2022 and was 6.4 percent higher than in January 2021. There was more inflation for grocery and supermarket store purchases with the consumer price index for those purchases increasing 1.2% in January 2022 and being 7.4% higher in January 2021.
Stellar Pizza hopes to address this problem directly by selling to its target customer: people who want food quickly and conveniently. With this comes the challenges of refining the recipe to something that customers will love, particularly working with the dough, and developing systems that can accommodate all the different pizza inputs. The culinary challenges are accompanied by the challenges of the approach they are taking by operating as a company that is building new technology and a restaurant brand simultaneously.
“The development of food robotics as compared to developing space technology is a whole different ball game, it’s lower stakes,” Tsai said.
Stellar Pizza’s solution is to build serially by first developing the technology and then the restaurant brand. The reason why Stellar Pizza chose to operate its own restaurant brand is to stay vertically integrated and customize the technology to fit its needs.
“If you look at SpaceX, raw metals show up at the door of the factory, and they sell rides to space, not rockets or any of the technology.”
Another aspect of operating a restaurant brand is consumer perception. Consumer response to automation in the restaurant industry has, in general, been mixed, with some praising it for making food cheaper and more available while others worried that it will take away jobs.
“All of the fast food in the world is already made by robots,” Tsai said. “Like the sausage patty you get in your burger is made by a factory somewhere so automation in food has already been a part of our lives for decades. We’re just moving the robotics a little closer to the customer.”
The long-term vision for Stellar Pizza is to move the pizza production closer to the customer by having just one person, a driver, who hands off the pizza to the customer or another delivery driver. This application is a hub and spoke model with the main truck and a fleet of delivery drivers making deliveries. Last-mile delivery has been a huge area of innovation since the start of the pandemic, especially automated delivery. McKinsey found that of the $11.1 billion raised by last-mile delivery startups, $9.9 billion went to startups with unconventional technology such as drones and autonomous vehicles.
Stellar Pizza isn’t the first company to combine robotics and truck delivery in one startup. Zume Pizza developed a cobot method where a robotic assembly line spread dough balls and sauce before human employees added toppings. Another robot transferred the pizza into a double-decker oven where it was par-baked and then transferred onto a rack. From there, humans loaded the pizzas onto the delivery trucks, where the pies were baked while in transit to the customer.
Zume raised $375 million in funding from SoftBank in late 2018 before it had to fold its pizza delivery operation. Stellar Pizza is different in that the robots are directly on the delivery truck. Stellar Pizza has already raised $9 million from three firms: Root Ventures, Collaborative Fund, and Crosslink Capital. It plans to launch this summer in Los Angeles, California.
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