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Daily news and analysis about the food tech revolution

Basil Street

The Great Vending Reinvention: The Spoon’s Smart Vending Machine Market Report

Thanks to advances in hardware, the internet of things, and food preparation, vending machines today are basically restaurants in a box. They offer high-end cuisine in minutes, require minimal setup time, and have the on-board computing smarts to manage inventory and communicate any issues that arise.

With these capabilities, it’s no wonder the vending machine category was valued at more than $30 billion in 2018, according to Grandview Research, and was anticipated to have a CAGR of 9.4 percent from 2019 through 2025.

Had this report been written even just a few months ago, the main takeaway would have been that vending machines are perfect for high-traffic areas that operate around the clock: airports, corporate offices, college dorms, and hospitals.

But we’re living in a world continuously being shaped and reshaped by the COVID-19 global pandemic. Right now, some form of shelter-in-place orders blanket most of the U.S. Global air travel volume has plummeted, so airports are not busy. Non-essential businesses are closed and people are working from home, not office buildings. And colleges may not hold in-person classes until 2021.

While on the surface, those factors suggest vending machine companies will be yet-another sector wiped out by coronavirus, there has actually never been a better time for the automated vending machine industry. The small footprint and high-end food these devices offer are perhaps more important than ever at a time when minimizing human-to-human contact in foodservice is paramount to doing business. That makes the vending machine market uniquely positioned to capitalize on a post-pandemic world.

This report will define what the automated vending machine space is, list the major players, and present the challenges and opportunities for the market going forward.

Companies profiled in this report include Alberts, API Tech/Smart Pizza, Basil Street, Blendid, Briggo, Byte Technology, Cafe X, Chowbotics, Crown Coffee, Farmer’s Fridge, Fresh Bowl, Le Bread Xpress, Macco Robotics, TrueBird, and Yo-Kai Express.

This research report is exclusive for Spoon Plus members. You can learn more about Spoon Plus here.

Basil Street Raises $10 Million for its Pizza Vending Machines

Basil Street announced today that it has raised a $10 million round of funding that will help the company begin a multi-city pilot of its pizza vending machines starting this April.

Basil Street’s machines are roughly 20 square feet in size and hold up to 150 10-inch, thin-crust pizzas. The machine serves cheese and pepperoni pies as well as a rotating “Pizza of the month,” each costing between $6.95 and $11.95. Pizzas are made fresh, flash frozen for storage in the machine, and reheated using a patent-pending, non-microwave speed oven that cooks the pies in about three minutes.

Like other vending machine companies, Basil Street is targeting high-volume, high-traffic areas such as airports, military bases, hospitals, college campuses or even inside existing locations like supermarkets.

And also like other vending machine companies, Basil Street is part of a wave of high-tech, haute cuisine automated food kiosks coming to market. Other players — Yo-Kai Express with its hot ramen, Chowbotics with its fresh salads, and Bake Xpress with its pastries (and pizza!) — are all vying to revolutionize what a vending machine is capable of.

But for Basil Street, selling pizza is just part of the equation and really just the start for the company. As we wrote last year, all the machines are IoT-enabled, so the company will have a ton of data to work with:

The company will know what people buy, when and where they buy it, and how often. Basil Street could use this data to target new cuisine offerings or new locations. The company started with pizza because it’s easier to ship and cook, but [Basil Street Cafe CEO, Deglin] Kenealy said the oven’s technology could be used to cook just about anything.

But first, Basil Street has to get its machines up and going, which it will do with this cash infusion (the company had previously raised $3.5 million in family and friends funding). Basil Street will be targeting Texas, Kansas, Missouri, North Carolina and Southern California for its first roll-outs.