Clayton Wood, the CEO of pizza robot maker Picnic, is departing the company, according to a post made by Wood on Linkedin.
Wood joined the company – originally named Otto Robotics and Vivid Robotics before it eventually settled on Picnic – in 2019 after it parted ways with its founding CEO, Garett Ochs. Since then, Wood has led Picnic through significant growth and a couple of funding rounds.
The Picnic CEO’s departure comes just weeks after Wood announced on Linkedin that the company was having its first layoffs. At the time, Wood said the company “had to make the difficult decision to reduce our company size and say goodbye to some colleagues” due to the “current economic environment.” Now Wood is saying goodbye to the company he led for over four years.
“After an amazing 4+ year ride, I’m stepping down as CEO at Picnic,” Wood wrote. “It’s been an exhilarating adventure, helping to build a new industry of restaurant automation, and I’m very proud of the work I was able to accomplish with the invaluable assistance of an amazing team of leaders and contributors.”
Wood said he does not know where he will end up next but plans to start looking for his next role after some time off. After laying off a big chunk of his team and facing the prospect of trying to raise more capital in the current VC winter, I can’t blame him for wanting to take a break.
So what does the future look like for Picnic and the broader food robotics space?
The near-term prospects for the company are tough, having to look for a new CEO and raise additional money. The company raised a $16.3 million Series A in 2021 and, according to a filing last year, was looking to raise an additional $7.75 million. Despite Wood’s success raising money previously, the company was undoubtedly having difficulty raising a significant Series B in the current funding climate. The company could now be a target for acquisition by a larger company such as Middleby, a food equipment conglomerate that has fueled much of its growth via acquisition. Middleby showed off its own pizza robot in 2020 but hasn’t talked much about it since.
As for the broader market implications, my guess is, unfortunately, we will continue to see some food robotics startups struggle over the next couple of years, given the slowdown in venture capital, particularly those looking to raise larger rounds for scaling. The pizza space is particularly competitive, and we’ve already seen some startups in the space go out of business.
We wish Clayton – who has been generous with his time for Spoon events and podcasts – good luck on his next adventure!
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