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Daily news and analysis about the food tech revolution

Brightloom

Week In Restaurants: Grubhub Says It Is Not for Sale, McDonald’s Creates a New Tech Department

Taco Bell bucked industry trends this week by announcing it will test paying select managers at some company-owned locations $100,000, which is roughly double the average salary for restaurant managers. Between that, new vegan drinks from Starbucks, and a slew of other announcements, much happened in the world of restaurants this week. Here’s a wrap of a few other stories from ‘round the web:

Grubhub Says It Is Not for Sale

Reports surfaced earlier this week that Grubhub had hired financial advisors to explore a sale or acquisition — news that sent the troubled delivery company’s stock surging. However, a spokesperson for the company told the folks at Restaurant Dive today that “there is unequivocally no process in place to sell the company.” The spokesperson added that Grubhub believes there will be acquisition opportunities this year and that the company’s profitability “remains secure.”

McDonald’s Is Creating a New Tech Department

Meanwhile, if there were any doubts former CEO Steve Easterbrook’s sudden departure would stall the mega-chain’s tech ambitions, those should be sufficiently quelled by this week’s news. On Wednesday, McDonald’s announced it is creating a digital customer engagement team and the role of Chief Digital Engagement Officer. Lucy Brady, who has spent the last three years as SVP of corporate strategy and business development at McDonald’s, will step into the new role. Brady’s group formerly led the development of McDonald’s delivery program as well as the $300 million Dynamic Yield acquisition that happened last year. The new team will oversee digital ordering, personalization, payments, loyalty programs, and delivery, and report directly to newly appointed CEO Chris Kempczinski.

Olo Supposedly Planning a 2020 IPO

Olo is said to be planning a U.S. initial public offering for this year, according to a Bloomberg article that cited “people with knowledge of the matter.” The company’s software streamlines the process of adding delivery partners for restaurants, among other things, and has been steadily gaining popularity in the restaurant tech world over the past few years. Sources say Olo had interviewed potential advisors at the end of 2019 and could seek a valuation of $1 billion for an IPO. Olo itself declined to comment on the story.

Wow Bao Expands to the East Coast

Fast-casual Asian-food chain Wow Bao will expand to the East Coast, with three new locations set to open in the first quarter of 2020, according to an email sent to The Spoon. Wow Bao is known for its tech-centric approach to fast-casual that leverages Brightloom’s end-to-end tech stack for restaurants. Given that focus, which includes self-order kiosks, pickup cubbies, and digital ordering, it makes sense the chain’s new planned locations will be in airports, where super-speedy service for high volumes of people is the norm — or at least the norm restaurants aim for. Planned locations are for Dulles International Airport, Boston Logan International Airport, and Raleigh-Durham International Airport, according to the press release. 


Newsletter: Back-to-School Delivery Apps and High-Tech Sushi Burritos

While my colleagues are across the Pacific this week at the SKS Japan show, I’ve been thinking about college. Specifically, how college and university campuses are a lucrative frontier for food delivery.

Unless you’re in an urban campus like NYU, where delivery, takeout, and street food options already abound, the average college campus has everything a food-delivery service could want in terms of customers: lots of bodies packed tightly together, pulling late hours in locations where food isn’t always a given (e.g., the library).

Third-party delivery services like DoorDash and Grubhub already provide a presence on campuses, along with a much-needed alternative to soggy spaghetti and stale Cheerios. But for bigger corporations who’ve long been a part of the university foodservice world, third-party delivery is a competitive threat to their very relevance on campus.

Not surprising, then, that some of these legacy foodservice companies are starting to respond with their own contributions to delivery. This week food services provider Aramark, who works with more than 400 universities in the U.S., announced it had acquired meal delivery company Good Uncle.

Via Good Uncle’s app, students can order chef-made meals and snacks that are typically cheaper than the average restaurant and don’t have delivery fees. While Good Uncle’s reach is relatively small right now, serving just eight campuses, its business model makes a lot of sense for an older company like Aramark trying to stay relevant to students in the food delivery era.

Exactly how Aramark will leverage this new acquisition remains to be seen, but it’s a smart move to get into the delivery space now. Grubhub has already been working its way onto campuses via its 2018 acquisition of Tapingo, and a growing number of delivery bots on campus brings both new ways to do food delivery for students and more competition for existing players. That includes Aramark rival Sodexo North America, who this year partnered with Starship Robotics to unleash fleets of wheeled bots onto college campuses.

An Eatsa-style Empire in Japan

But back to Japan.

My colleague Chris Albrecht got to experience not one but two awesome food-centric things this week: sushi burritos and high-tech restaurants.

Chris headed over to Beeat Sushi Burrito, a Tokyo restaurant that serves sushiritos and is powered by an end-to-end system that automates most of the order, pay, and pickup process for customers.

As Chris noted, though, UBO, the company behind the restaurant, is more focused on tech than food:

“Instead of selling sushiritos, UBO has developed the entire system from the software platform to the cameras installed in the cubbies that read the special QR codes that identify each order. UBO wants to license its tech stack to other restaurant chains, who can then integrate the automat style of eating into their own locations.”

It’s not unlike the Brighloom (nee Eatsa) system here in the U.S., which is an end-to-end restaurant tech stack that automates much of the customer’s restaurant experience and will do so even more now that it’s licensed some of Starbucks’ technology.

So while a sushirito empire isn’t the end goal for UBO, Beeat Sushi Burrito is another example of how the restaurant experience is getting automated and suggests we’ll see many more iterations of this in future, on either side of the Pacific. And, most likely, in colleges and universities, too.

Until next time,

Jenn

UBO is Using Sushi Burritos to Build an Eatsa-Style Empire in Japan

Unless you live in San Francisco, you may not be familiar with the concept of a sushirito. They are exactly what they sound like: sushi wrapped up like a burrito. A Tokyo-based company called UBO is hoping to leverage those delicious portmanteaus to help restaurant chains build out their own Brightloom (formerly Eatsa)-like experience across Japan.

I met with UBO CEO, Takehiro “Indy” Sato, at Beeat Sushi Burrito yesterday. The restaurant opened last December near the Akihabra district in Tokyo. There are no humans to greet you at the door or take your order. There are just two people tucked away working in the kitchen. To place an order, you visit the Beeat web site (no native mobile app yet), make your selection, tell them when you want to pick it up, and pay with a credit card or Amazon Pay (more on that in a second). Then you go to Beeat Sushi where there are some tables and rows of numbered cubby holes. A screen above tells you when your order is ready and which number box to pick it up from.

But UBO’s goal is not to create a Beeat empire; the restaurant itself is more of a proof-of-concept. Instead of selling sushiritos, UBO has developed the entire system from the software platform to the cameras installed in the cubbies that read the special QR codes that identify each order. UBO wants to license its tech stack to other restaurant chains, who can then integrate the automat style of eating into their own locations.

If that sounds like Eatsa Brightloom, well, you’re not wrong, though Sato said there are some differences between UBO and Brightloom. For one, the cubby holes at Beeat don’t have doors — the Japanese public health department wouldn’t allow them. Sato tried telling officials that other countries like the U.S. and China use doors, but the Japanese government said no.

Second, Sato isn’t repeating Brightloom’s mistake of trying to build his own restaurant chain. “We’re a tech company, not a sushi company,” Sato told me when I visited him at Beeat today.

To that end, the company has already iterated on its system and now offers a smaller version of its cubby system. Instead of taking up a wall, it’s more like a countertop display case with a tablet on the bottom. Sato says this diminutive footprint is better for restaurants in Japan, which are usually smaller. Restaurants could alleviate long lines and crowds by having people order ahead, then simply walk up and grab their food from the cubby.

Sato said UBO is fully self-funded right now, though the company is looking for venture funding to help scale up operations. Right now, UBO’s business model is to rent out its system at $2 per cubby per day with a two-year minimum contract. The company is currently running and planning tests with some unnamed customers.

I learned a few other interesting tid-bits about Beeat while chatting with Sato. Most surprising is that Amazon Pay is evidently super popular in Japan. Sato said that roughly 40 percent of his customers use Amazon Pay when paying for their meal. Additionally, UBO decided early on to not go with kiosk ordering. Sato didn’t think they were necessary after visiting the U.S. and seeing everyone just order with their phone inside Starbucks.

He also said that though they are connected with Uber Eats, only about 20 percent of their Beeat business is delivery right now. That was surprising to me because sushiritos are actually pretty perfect for delivery. They don’t have to stay hot and they come in a compact form factor that keeps the food in shape even when it’s jostled about. Most of all, they are delicious — you can tell they were developed by a Michelin-starred chef, Mizuguchi Kazuyoshi.

But people wanting to try a sushi burrito in Tokyo should do so soon, because if UBO’s licensing business takes off, there won’t be a need to keep Beeat open.

The Food Tech Show: The Perilous Existence of Bike-Riding Food Delivery Drivers

It’s been a big week in restaurant tech news, so the Spoon gang got together to record a podcast.

In this episode of the Food Tech Show, we discuss:

  • Starbucks deal with Brightloom (formerly Eatsa) and what it means for the restaurant tech market
  • The New York Times piece about a day in the life of food delivery drivers
  • Uber’s all-in-one app for food, bikes and rideshares
  • Mike’s first-world coffee machine struggle with whether he should have waited for the Terra Kaffe, even as the Spinn nears a ship date

As always, you can hit play below or listen to the Food Tech Show podcast on Apple Podcasts, Spotify or wherever you get your podcasts.

Audio Player

Pizza Hut Testing Brightloom’s Cubby Technology in Los Angeles

Pizza Hut announced in a statement this week that it is testing out Brightloom’s automated pickup cubbies at its Hollywood location. It’s the same technology currently used in chains like MAC’D and Chicago-based Wow Bao.

The point of Brightloom’s cubby system is to speed up service and give customers a way to order digitally then retrieve their food without every having to interact with a human being. Users can place an order via the Pizza Hut app or website, though Pizza Hut said in the statement they can still order via phone or in-person if they prefer.

Once at the restaurant, users find their designated cubby, which digitally displays their name on the door and is built with a special lining that keeps pizza hot and drinks cold. From there it’s just a matter of grabbing the pie and heading out.

The pilot kicked off yesterday. Pizza Hut says it plans to roll out more iterations of it in West Coast locations in 2020.

The pilot also follows the Brightloom announcement this week that the company formerly known as Eatsa has rebranded, raised $30 million, and is working with Starbucks to license the latter’s mobile order-pay-loyalty technology for its own system. Brightloom will in the near future license this newly revamped tech stack to restaurants.

Linking up with Brightloom is a smart move on Pizza Hut’s part. As my colleague Chris Albrecht said not long ago, “pizza continues to disrupt itself,” and there seems to be no end to national chains throwing new tech initiatives at the process of ordering, retrieving, and delivering pies to customers. Little Caesars’ Pizza Portal is similar to the Brightloom cubbies in that it’s a temperature-controlled, self-service pickup station that also allows users to order and pay digitally. Domino’s, meanwhile, has kept busy releasing everything from in-car ordering functionality to AI-powered scanners that check pizza quality.

But as we mentioned at the time of the Brightloom-Starbucks news, Starbucks is arguably the leader when it comes to mobile order, pay, and pickup technology, and combining it with Brightloom’s already-powerful end-to-end restaurant management platform could seriously raise standards around all restaurant technology. Pizza Hut hasn’t said if its subsequent cubby rollouts will include this new version of Brightloom’s platform, which will be unveiled in October. However, a relationship with Brightloom could help give Pizza Hut the competitive edge it needs when it comes to technology over the long term.

Newsletter: The New All-in-One Restaurant Tech Is Here, Digital Drive-Thru Goes Down Under

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I was in a local coffee shop recently and overheard a rep from a well-known POS company trying to sell his product to the shop’s manager. But for every feature he offered up (“It’ll manage payroll!” “It makes tipping easier!”), the cafe manager had more or less the same rebuttal: more tech would make more work for her staff.

I suspect this conversation is happening all over the world. Tech’s march on the restaurant industry is here to stay, but that doesn’t mean it’s necessarily making life easier for restaurants. In a growing number of cases, too many digital tools actually make it harder to get work done, particularly as demands for delivery and mobile orders ramp up and those functions have to be integrated into an already chaotic workflow.

But this week, we got a different glimpse into the future of the digital restaurant — namely, one where disparate tech solutions are replaced by a single digital platform that can manage every corner of the restaurant, from the kitchen system in the back to the kiosk out front to the off-premises order on its way out for delivery.

At least, that’s what Brightloom hopes to launch to restaurants this fall. The newly rebranded company, formerly known as Eatsa, announced yesterday that it’s revamped its existing end-to-end restaurant tech platform, into which it’s also integrating Starbucks’ famed mobile technology.

This is a big deal because, while many products claim to be “all-in-one” restaurant management software packs that make it easier for restaurant owners and operators to manage the entire business, no one’s yet managed to seamlessly integrate the mobile aspect of business into their system.

And nobody does mobile like Starbucks. Love ‘em or hate ‘em, it’s hard to deny the mega-chain’s dominance when it comes to offering fast, highly personalized order and pickup functions for customers. Brightloom’s soon-to-be-unveiled system will integrate the Starbucks mobile order, pay, and customer loyalty tech into its own system. We don’t yet know exactly what that will look like, but it will undoubtedly raise everyone’s standards around what restaurant-tech systems should be able to do and put pressure on others to make their offerings just as useful and less of a burden for restaurants to implement.

Good-bye, Crackly Speakerphone. Hello Digital Drive-Thru
Will all these digital developments render the crackly speaker at the drive-thru null and void? Probably, and sooner than we think.

While major QSRs like Dunkin’ and Starbucks have been implementing digital and mobile ordering into the drive-thru experience little by little over the last couple years, KFC took things a step further recently by announcing its first-ever drive-thru-only concept store.

The store, which is slated to open in November, will feature multiple drive-thru lanes dedicated to customers who have ordered their food via the KFC website or mobile app. The idea is to streamline the order process and cut down on how long it takes customers — or delivery drivers — to get their food. But again, it’s all about the implementation. KFC’s concept store could raise the bar on what QSRs are expected to deliver in terms of speed and quality. Or it could just be introducing another digital process that stresses workers out. We’ll know more when the pilot launches in November, in Australia.

Delivery Bots on the Rise
Or you could just let the restaurant come to you in the form of a roving bot. There’s a growing number of these devices delivering food from restaurant to customer, often on college campuses, which hold a lot of people in a relatively small geographic area.

But as my colleague Chris Albrecht pointed out this week, Kiwi announced it will test its semi-autonomous delivery bots on the streets of Sacramento, CA this fall, which suggests we’re coming to a point where these li’l roving machines will start to become a more common sight on regular city sidewalks. Who needs drive-thru when you can have your meal brought to you by a cute little box on wheels? As Chris said, “it was pretty amazing to whip out my phone, order a burrito, have a robot fetch my lunch and bring it to my location.”

For now, roving delivery bots are probably not a priority for most restaurants’ overall digital solutions. But as all-in-one offerings like the Brightloom-Starbucks tech get more commonplace and digital ordering becomes routine for customers and workers alike, there may be room for most restaurants to accommodate a bot or two in their tech stack.