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The Spoon

Daily news and analysis about the food tech revolution

delivery

Sidewalk Robot Specialist Serve Raises $13 Million From Uber, 7-Eleven & Wavemaker Labs

Serve Robotics, the autonomous sidewalk delivery robot spinout of Postmates (which itself was acquired by Uber), has announced a $13 million expanded seed round of funding. The new funding round includes several strategic investors, including former parent Uber Technologies, Delivery Hero backed DX Ventures,7-Eleven Inc.’s corporate venture arm, 7-Ventures, and Wavemaker Labs.

According to the release, Serve plans to use the new funding to accelerate its technology development and expand into new markets. The company, which has been trialing its delivery bot in the West Hollywood neighborhood, recently started to expand its executive ranks as it prepares to scale.

“This is a space that has kind of reached readiness for scale,” Serve CEO Ali Kashani told The Spoon in November. “So we are at a very pivotal point where we are no longer trying to develop something. We have developed something, and now we are putting it to use.”

For each of Serve’s new strategic investors, an alliance with the sidewalk robot company potentially adds another arrow to their automation quiver. For its part, 7-Eleven has been trialing autonomous automobile delivery with its partner Nuro in the California market, but has yet to partner up with a sidewalk robot partner. It will be interesting to watch if the company begins to trial with Serve in the California market in the coming months as it expands its efforts in autonomous delivery.

European delivery giant Delivery Hero had some early trials with sidewalk delivery startup Starship, but has since been relatively quiet on the sidewalk delivery front. However, the company’s head of special projects for its middle eastern delivery group, talabat, recently hinted that delivery robots and drones could become commonplace in the near future.

“I do see delivery robots being implemented quite soon, in specific scenarios,” said Maria Estevan, Head Of Special Projects at talabat, in a recent article on Delivery Hero’s website. “We can already see it at foodora, it’s already there. We just need to make it bigger, scalable, and adapted to the conditions of each country, its requirements, regulations, and culture. But to me, they are actually already here.”

For Wavemaker Labs, the company has largely been investing and incubating a lineup of different food robots ranging from its back-of-house frybot in Flippy from Miso, an autonomous pizza-making machine in Piestro, and its robotic kitchen robot in Nommi. With Serve, the food robotics-focused venture studio adds a food delivery robot to its portfolio of investments for the first time.

SKS 2021: Meet Ottonomy, Maker of Autonomous Food Delivery Robots

Time to meet Ottonomy, one of the ten startups pitching tomorrow at Smart Kitchen Summit!

Ottonomy is a maker of autonomous delivery robots. Unlike most other sidewalk delivery bots, Ottonomy can navigate through both outdoors and indoor environments. The company, led by longtime robotics entrepreneur Ritukar Vijay, was founded last year and has already racked up mobile ordering partners like Crave.

So why did Vijay, who has worked on autonomous mobility solutions for car makers like BMW, decide to focus on a delivery bot?

“One thing which struck me is that autonomous cars will still take some time to hit the mainstream,” said Vijay. “So what is the best way to actually utilize that know-how to solve a problem of today? That’s how we came down to delivery. Because that’s something which is a real use case that autonomous driving can solve.”

While competition is heating up in this space, Vijay believes his product is hitting the market at just the right time.

“The labor shortage is hitting the restaurants and wages have increased massively,” said Vijay. “So it becomes very, very difficult for large businesses to give a solution the customer expect and have a sustainable future. At the same time, from the customer side, they want a cleaner, faster and cheaper way of getting those kinds of services. So it’s a win-win from both customer and the restaurant side.”

You can watch Carlos Rodela’s full interview with Ritukar Vijay below. If you’d like to connect with Vijay at the Smart Kitchen Summit, get your ticket today!

The Spoon Interviews - Ottonomy

Dallas Chef Offers A Fearless Approach to Her Vegan Ghost Kitchen

For Dallas chef Lori Moore, operating her new business, Vspot, out of what is commonly called a “ghost kitchen” is no figment of anyone’s imagination. Her vegan-inspired menu evolved from her fanciful passion for food, but Lori’s lunch and dinner spot is the result of years of training, hard work, and planning. In her case, the “ghost” part of the equation is more of a conscious choice than a need to follow a growing trend.

“I was always that weird kid that loved veggies,” Moore said in a recent interview with The Spoon. After graduating from Dallas’ Le Cordon Bleu College of Culinary Arts in 2011, Lori toyed with the idea of opening a vegan food truck. Still, the cloud kitchen concept allowed her to focus more on cooking and less on infrastructure.

In order to avoid tackling complex technology on her own, Moore took advantage of a platform offered by Los Angeles-based CloudKitchens, a company founded by Diego Berdakin in 2016. Key features of CloudKitchehn are tools that allow Moore to track orders and work with suppliers. The consumer-facing process starts with Flipdish, a seperate technology, that takes customer orders, which are sent to the kitchen owner for fulfillment. Next in line is Otter, an AI-based technology, which seamlessly connects to various delivery options, including Uber Eats, Door Dash, Caviar, and Grubhub.

“Using the technology of a cloud kitchen, it takes care of the technology that is out of my range,” Moore said. “It lets me do what I do best—cook.

Before starting Vspot, Moore offered meal prep, which gave customers menu options in advance that the Dallas chef would prepare for her clients to pick up. Her weekly menu would include five different choices for lunch and five for dinner.

Moore’s decision to focus on vegan food was partially based on her food preferences and appealing to the North Texas’ growing interest in plant-based foods, which was aligned to her community becoming more health-conscious during the COVID-19 pandemic. The commissary where she does all her cooking is in Trinity Grove, near the downtown area, where many of her regulars live.

“Many people are intimidated by the idea of being vegan,” she said, commenting that many are shocked when they order and enjoy a vegan burger. “They can’t believe it’s vegan and can’t wrap their head around it.”

Between 75% and 80% of her food is made from scratch, with such items and burgers, cheese, chicken, and buns provided by a local purveyor. Listening to what she jokingly calls “voices in her head,” Moore hopes to add soups and other staples to her roster of vegan offerings.

As with most successful upstart food companies, Moore is a heavy user of social media leaning on Instagram to whet people’s appetite with pictures and videos of her burgers (Impossible Burger), vegan chicken sandwiches, sides, and desserts.

The cloud/ghost kitchen concept fits Moore’s vision to a T. She refuses to be satisfied with her single location in Dallas, hoping to expand her idea across the country. She would find a place for the cloud kitchen and train people to handle the food prep in order to carry out that vision. Of course, leaning heavily on her model of using Flipdish and CloudKitchens for the required tech muscle would be a significant key towards achieving her long-term goal.

Lori Moore is not alone in seeing the power and profit of vegan-themed cloud kitchens. Aside from startups in China and India, there are Souley Vegan, based in Oakland; Good Vibes in Sacramento; Qusqo Bistro in Los Angeles, and Los Angeles-based Plant Nation.

Tired of Cold Take Out? SavrPak Believes It Has The Answer With New Packaging Prototype

Although everyone seems divided in these tumultuous times, there are still a few things in this world we all can agree on: Jeopardy won’t be as good without Alex Trebek, Facebook is evil, and cold food sucks.

While we can’t do too much about the first two, the final one might be a solvable problem, at least according to SavrPak. That’s because the company has debuted a new delivery packaging prototype that it claims will keep food at a safe temperature.

This is important because once food drops below 140o F, bacteria forms on the food’s surface. Unfortunately, that doesn’t take long for food packaged up in the typical foam or molded pulp packaging.

According to SavrPak, the company’s new packaging prototype can keep food at 140o or above for more than 20 minutes. While the typical wait for food ordered via a delivery service like DoorDash is about 40 minutes, a good chunk of that time is waiting in the prep queue and the actual making of the food, and 20 minute time window is about the average time it takes for a food package to arrive at the customer’s door once it’s picked up by the delivery driver.

And not only is hot food safer, but it also tastes better. And while there have been research projects on everything from using exhaust fumes of delivery vehicles to using inductive heating and chemicals as ways to keep food warm in transit, the beauty of SavrPak’s approach is its simplicity. SavrPak new prototype uses a small plant-based patch that is placed in the food packaging that extracts moisture and keeps the food warm. The packaging is insulated, and the combined impact is warmer (and less soggy food).

The soggy-free food part is no surprise for those familiar with SavrPak’s history. The company was originally called Soggy Food Sucks after Bill Birgen developed a patch to keep the lunches he made to take to work at his day job as an aerospace engineer from getting soggy. After patenting the technology and debuting it at The Smart Kitchen Summit’s Startup Showcase in 2018, companies from around the world began to contact Birgen. Last year, the company rebranded to SavrPak, and Mark Cuban even decided to invest after co-CEO Greg Maselli sent him a cold email.

I asked Birgen how it feels to create successor technologies and see the company grow beyond that original concept he came up with for your work lunch?

“It’s been incredible to see SAVRpak resonate with people and businesses around the world,” said Birgen. “I’m most energized about our plans to help the food industry be more sustainable. We see huge potential in SAVRpak’s ability to extend the shelf life of produce and reduce food waste.”

According to company co-CEO Grant Stafford, the company’s new packaging prototype is being trialed by Kitchen United and a variety of QSRs, and he expects the product to roll out in both the US and Mexico this quarter.

Blue Apron Gives Time-Crunched Customers New Option With Heat & Eat Meals

For six months, I was an enthusiastic Blue Apron subscriber.

Each week I’d go on the website, eagerly choose my meals, and then spend an hour or so a couple of nights a week preparing dinner for my family by following Blue Apron’s cook-by-number instruction cards.

I liked it. The food was good, I learned new recipes, and it was fun.

But I still canceled. The reason? Life got busy, and it all seemed like just too much work.

As it turns out, I’m not the only one who doesn’t have 45 minutes a night to cook, which is why Blue Apron is debuting a new line of Heat & Eat meals that subscribers can microwave and have on the table in five minutes.

The company announced that the new ready-to-eat meals are available to most customers this week and will be available nationwide by November 1st.

From the release:

Heat & Eat meals were crafted to seamlessly complement customers’ Blue Apron Signature weekly recipes, providing them with more choice and flexibility in their weekly routine. Whether they are cooking for one, seeking a quick dinner option or an easy weekday lunch, Heat & Eat meals were designed to make meal decisions a bit easier. Heat & Eat meals are based on some of the company’s most ordered and top-rated dishes, and designed to be warmed in a microwave.

The new Heat & Eat meals will also come in single portions, a departure from the company’s traditional 2 or 4 person serving sizes for their cook-from-recipe meals.

It’s no secret that meal kit companies have long struggled with customer churn; just last year, Blue Apron explored strategic options as it ran short on cash due to high churn. However, the company saw an increase in customers in 2020 as people stayed home and cooked more, and early indications are some of the behavior changes may be permanent.

And now, by expanding their menu of options to include ready-to-eat meals (and adding single-serve portions), there’s a good chance the company will be able to reduce churn. I also suspect they’ll widen their addressable market to the time-crunched professional who cooks for themselves (Tovala’s sweet spot).

Had they had ready-to-eat meals when I was a subscriber, I might have stuck around. And who knows? With their expanded meal options, I might have to give them a second chance.

Will Zero-Emission Zones Drive Robotic Delivery Adoption? Looks Like It.

Last February, Santa Monica passed a rule that said all deliveries within it need to have zero emissions. Basically, this means that food needs to be delivered by someone on a bike, in an electric vehicle or…a robot.

It looks like the robots may be winning.

According to this dot.LA piece, delivery bots from a few different companies are now buzzing around the sidewalks, one of them being the Santa Monica-based Coco.

Launched in 2020 amidst the COVID-19 pandemic, the company has expanded operations from one Santa Monica neighborhood to six other neighborhoods in little over a year. In February, the company rolled out their robots in San Pedro, working with Councilman and mayoral hopeful Joe Busciano and the Chamber of Commerce. Several local restaurants including San Pedro Brewing Co. and Whale & Ale signed on.

California often leads when it comes to regulations, and Santa Monica’s new zero-emission zone is the country’s first. I suspect that we’ll probably see other California cities follow suit and, if they do, I expect we’ll see more sidewalk robots shuttling meals to customers soon after.

Could other cities outside of California follow suit? I think they will, especially as cities become increasingly crowded with traffic from customers ordering food.

For now, though, we’ll keep an eye on how many more robots pop on the sunny sidewalks of Santa Monica.

Slice Launches Tiered Packaging for Its Pizza-Centric Tech Platform

Slice, a company fast becoming a go-to piece of restaurant tech for indie pizzerias, announced a new tiered packaging feature for its software offering. With it, pizzerias can choose which level of service they need from the software stack based on their individual business.  

The founders of Slice created the software platform as a way to give independent pizza restaurants some of the same digital tools and advantages the bigger chains — Domino’s, Papa John’s, etc. — can afford. The pandemic may have pushed the restaurant industry firmly over the threshold of the digital realm, but as was noted at The Spoon’s Restaurant Tech Summit this week, many mom-and-pop stores may not even have a POS system, let alone sophisticated online order and delivery tools.

Slice’s platform now offers such tools via three different levels of service. All levels give pizzerias a listing on the Slice app/marketplace as well as access to marketing tools. Slice Essentials adds access to a rewards program to that bundle.

Shop owners that need more digital capabilities can graduate to the Slice Premium level, which gives them access to online ordering, a customized website, and boosted search rankings on the marketplace. The top tier, Slice Complete, includes all of the above plus Slice’s POS system, which the company launched earlier this year. 

As Slice’s Chief Product Officer, Preethy Vaidyanathan, explained to The Spoon a while back, pizzerias have “specialized needs” when it comes to technology that might not exist elsewhere. Menus are one small example: pizza shops have to accommodate for things like different crust styles, and half-and-half toppings in their online ordering tools. Those capabilities are harder to develop in an interface that it might first seem.

Restaurants pay a fixed cost per order to use the Slice technology, as opposed to the percentage-per-transaction model used by most third-party delivery services. (Slice does not provide delivery drivers/couriers.) Consumers, meanwhile, use the app much as they wold any other restaurant-ordering interface. Slice is currently available in all 50 U.S. states at over 16,000 shops. 

The company raised $40 million in Series D funding this year, which it is using to expand its current line of products. 

Restaurants Are ‘Always Blamed’ When It Comes to Bad Delivery. Here’s How Tech Can Help

Who is responsible when something goes wrong with delivery?

A succinct-yet-apt answer to that question recently came from fast casual chain Wow Bao’s President and CEO Geoff Alexander, who spoke at The Spoon’s Restaurant Tech Summit this week: “As the restaurant brand, you are always blamed.”

If you’ve ordered via third-party delivery with any frequency, you’ve likely dealt with the following scenario: The order is late or does not arrive. The customer calls the delivery service and gets an automated response. The customer calls the restaurant itself, who may not know where the food is because it left the the building ages ago. If and when the meal finally arrives at the consumer’s door, it will be cold, soggy, dry, or all of the above. It’s usually not DoorDash, Uber Eats, or any other delivery service that gets blamed for these problems. 

By way of example during the event, Alexander brought up Fargo, North Dakota, where Wow Bao operates one of its dark kitchen locations. For these kitchens, other restaurants cook some of the Wow Bao brand’s signature items and sell them on the usual third-party delivery channels as a way to make incremental revenue. Wow Bao has about 350 dark kitchen locations around the country right now, with a “moonshot goal” of reaching 1,000 by the end of the year. 

Brand integrity is always something to watch for with these kitchens. “When an issue happens there, it’s not Wow Bao,” Alexander explained at the event. “It’s somebody running one of our dark kitchens. And [the food is] delivered via one of three or four delivery platforms. I get the phone call. Wow Bao corporate gets the phone call, we get hit on Instagram or social or Google Reviews. That whole brand transfer hast to be the most guarded and respected piece by the brand itself and by the operator to work together. At the end of the day, the way that guest is handled is what’s going to decide if the guest is going to come back and who they’re gonna tell.”

As to how tech can help restaurants guard this brand transfer, the other panelists pointed to tools that can optimize operations. Ava Ghaiumy, Delivery Hero’s regional director for global foodservice operations, pointed out that there is “almost no bigger KPI than speed.” Her company, which is investing heavily in various tech initiatives, is working on things like improved dispatching and rider-tracking features that can help with speed of service when it comes to delivery.  

Olo’s Marty Hahnfeld, who was also on the panel, said it’s all about “precision in operations.” That includes improving order accuracy, making sure menus are up to date across all ordering channels at all times, and that pricing is correct on those channels as well. Olo offers its Dispatch service that allows restaurants to order directly from a restaurant’s own website or mobile app. Though in most cases, there is still a reliance on third-party delivery to handle the last mile.

At the end of the day. the most important technology to keeping brand integrity intact may be one that’s been around for quite some time: the POS integration.

Such an integration connects, among other things a restaurant’s main POS system with the many different channels through which customers buy meals nowadays, including third-party delivery. Whereas in the old days (two years ago), delivery services provided an external tablet and restaurant staff manually key’d in orders to the main POS system, more restaurants are now directly connecting delivery to that main system. Panelists were unanimous in their belief that this is an extremely important technology when it comes to improving order accuracy, timing, and a generally smoother experience for everyone.  

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.

As the Ghost Kitchen Industry Matures, Here Are 5 Trends to Watch

This following a guest post from Warren Tseng, a long-time operator, investor and advisor in the restaurant and ghost kitchen industries (full bio below).

The food industry has managed to squeeze about 10 years of innovation into just 18 months thanks to the pandemic. This in turn has given rise to a variety of ghost kitchen models that have allowed restaurants and food brands to increase sales and reduce their operating costs. Now that restaurant operators have seen that online delivery may likely be the bulk of their sales going forward, we will continue to see them double down on delivery and find new ways to become more efficient and technology-driven in terms of menu development, supply chain efficiency, direct-to-consumer distribution solutions, and kitchen automation. Here are five trends that will continue to shape the rapidly evolving ghost kitchen industry beyond the pandemic.

  1. Leveraging data and AI to inform menu and product development

Data can provide invaluable insight to any customer-facing industry, and ghost kitchens are no exception. Ultimately, data regarding brand preferences, pricing strategy, ingredients, and the popularity of cuisine types in certain regions can inform everything from menu design to marketing strategy for delivery-only food brands. Examining customer ordering data can also inform restaurants where their particular cuisines may fill a gap on a hyper-local basis, and where they might want to offer their products via a ghost kitchen versus a bricks and mortar location.

For example, JustKitchen has partnered with two Michelin-rated restaurants, Orchid by Peng and 3 Coins, to create delivery-only menus. Their brick and mortar locations previously were situated in very high-density areas of Taipei. By partnering with us, they were able to test the demand for their food in other parts of Taiwan without having to invest in real estate first. By examining the customer ordering data on a trial basis, we were able to see that the demand for this fine-dining style of food was very strong throughout areas of Taiwan they previously weren’t serving.

Additionally, brands that are interested in expanding into new countries can use a ghost kitchen to test out the popularity of the food on a trial basis before taking the leap and investing in the additional real estate and marketing that a global expansion normally requires. They can also test menu items on a trial basis and use ordering data to determine whether certain menu items are a fit for a new market — for example, a North American market versus an Asian market — before developing and rolling out a final concept and menu.

  1. Delivery-only food brands going direct-to-consumer

Whereas today many ghost kitchens and delivery-only brands rely solely on third-party food delivery platforms to connect with customers, in the future we are going to see more ghost kitchens and food brands going direct-to-consumer. Established food delivery platforms will more frequently be used as a test for brands to get initial exposure through the platform’s users. Once operators have found the right product-market fit, they will benefit from continuing to invest in the brand and building out new distribution channels, just as many startups first launch products on a platform like Shopify to test the market before building their own online sales portals and investing in marketing and distribution.

  1. Environmentally conscious initiatives to reduce packaging and food waste

Food waste is a growing global environmental and social issue, and restaurants are one of the world’s biggest contributors to it. In the U.S. alone, it’s estimated that restaurants account for 22-33 billion pounds of food waste each year. But ghost kitchens really do have an opportunity to be leaders in the restaurant industry in terms of reducing food waste. For example, using technology, ghost kitchen operators have the ability to more carefully track historical delivery data to better predict demand and thus more accurately plan supply, which can greatly reduce food waste. In addition, real estate players that host multiple ghost kitchen operators in a single facility, such as CloudKitchens, are able to leverage economies of scale with suppliers to boost efficiency and lower costs for operators. Similarly, ghost kitchen operators that offer grocery delivery in addition to meal delivery can take advantage of the FIFO (First In, First Out) rule: ingredients and supplies can be used in both meal preparation and grocery delivery services, reducing the chance of food going off before it’s used.

It’s no secret that the rising demand for online food delivery also means more packaging that gets tossed in the garbage. I believe that as the industry matures, more ghost kitchen operators will be held accountable for their packaging. At JustKitchen we use 100 percent recyclable or compostable packaging and paper straws instead of plastic straws. I believe, and hope, that we will see more ghost kitchen operators taking the initiative to replace single-use plastics with more environmentally friendly materials in future.

4.) Autonomous food delivery

A big challenge that ghost kitchens and online food delivery platforms alike experienced during the pandemic was a shortage of delivery drivers. As demand for online food delivery exploded during the pandemic, many third-party delivery platforms found themselves short of drivers. Additionally, many people were concerned about drivers handling food hygienically and following contact-free drop off protocols. In some cities, autonomous delivery robots have provided a viable solution to these issues, as they can bypass obstacles such as traffic and human-to-human contact during delivery. However, realistically delivery-by-robot only works in core downtown areas where the delivery destination is relatively near to where the food is prepared. Self-driving cars that can travel longer distances will likely provide a more viable autonomous delivery option in future, but we are not there quite yet.

5.) Modularized / container ghost kitchens

As the industry evolves and cooking technologies become more automated (check out Flippy, the burger-flipping robot), kitchens and everything from cooking to packaging and delivery will become more streamlined and less costly. In general, if care is taken to design menus and preparation methods that are highly efficient, delivery-only food brands will continue to evolve so that they need less space, less equipment, and perhaps even less staff to operate. When you need less space to operate in, you can invest in setting up a greater number of smaller kitchen facilities that occupy less real estate but cover more ground. Modular kitchens can be set up in spaces as small as a shipping container, can be deployed almost anywhere, and can still produce excellent quality products. Many ghost kitchens, such as Reef Technologies, are already implementing modular kitchens and although it can be a trial and error process at first, this is likely a trend we will see more of in the future.

At the end of the day, successful ghost kitchen operations are all about efficiency, and that can be thought of in two parts. On the restaurant side – implementing technology that enables a single ghost kitchen operator to handle multiple brands on multiple delivery platforms out of one kitchen will improve staffing efficiency and reduce food wastage. On the delivery side – having multiple restaurants and multiple brands concentrated in a small footprint, and technology that enables effective queuing and batching of orders – allows couriers and third-party logistics to batch multiple orders from one pick-up location to deliver to multiple destinations. This not only significantly boosts the efficiency of the logistics providers for the last mile, but most importantly, ensures the customer receives the highest quality product possible. Ultimately, ghost kitchens that can consistently deliver high-quality, on-brand products will be the winners in this increasingly competitive marketplace.

Warren Tseng is a strategic advisor to Taiwan-based cloud kitchen operator and delivery-only food brand developer, JustKitchen. Mr. Tseng is an early-stage business operator, advisor, and angel investor with extensive experience establishing and growing companies acrossSoutheast Asia and Greater China. He was an early entrant to the on-demand economy and the cloud kitchen industry from his previous roles as General Manager (Singapore) at Uber Technologies, and Regional General Manager (Asia Pacific) at CloudKitchens, where he established the companies in eight countries across the APAC region.

DoorDash Users Can Now Add C-Store Items to Their Restaurant Orders

DoorDash this week launched a new feature, DoubleDash, that lets users bundle items from different businesses like convenience stores together into a single transaction. DoorDash customers can add c-store items to their original restaurant order and checkout with a single transaction and no extra delivery fees, according to a company blog post.

DoubleDash is currently available for 7-Eleven, Walgreens, Wawa, QuickChek, and The Ice Cream Shop. It is also available for orders placed at DoorDash’s DashMart convenience store operation.

Customers placing a restaurant order can look for the DoubleDash option to add items from these stores. Available stores are indicated on the app inside the DoorDash app. Theoretically, orders from these different stores and restaurants are supposed to arrive at the same time, though a line at the bottom of today’s blog post notes that “deliveries may arrive separately.”

In certain cities, DoorDash is also offering DoubleDash for local restaurants. In these markets, users can add “complimentary items” from other restaurants to their existing order. 

All of this is further evidence that DoorDash is very serious about becoming a go-to service for more than just restaurant food. Besides launching DashMart last year, the San Francisco-based company has also launched a grocery delivery service and has existing deals in place with some c-stores. As of this week, DoorDash is also said to be in talks to invest in Germany-based service Gorillas, which offers speedy grocery delivery from small “dark stores” located in dense residential areas.

At the end of last month, DoorDash also opened a new location of its ghost kitchen facility. For now, that operation only delivers restaurant food.

Lunchbox Acquires Online Restaurant Marketplace Spread

Online ordering platform Lunchbox announced today it has acquired Spread, an online marketplace that aims to offer both restaurants and customers an alternative to Grubhub, DoorDash, and other major third-party delivery services.

Lunchbox’s online ordering software will power the transactions, while Spread will handle the deliveries. Pickup options will also be available for customers.

NYC-based delivery marketplace Spread was created to connect customers and restaurants without charging the former hefty commission fees, as third-party delivery services like Grubhub do. Restaurants that use the Spread platform can send promo codes and weekly specials directly to customers, who are then directed back to the restaurant’s own website to order. Spread charges a flat fee to restaurants (usually $1 or $2), rather than the typical percentage third-party delivery marketplaces use. 

Until recently, that percentage could reach as high as 30 percent per transaction, a figure that gutted restaurants’ already dwindling margins in 2020 as the COVID-19 pandemic shut dining rooms down. Many cities in the U.S. have since introduced caps on commission fees (some permanently), though the numbers still hover around 15 to 20 percent. 

Since the technical logistics of delivery are expensive and complicated, most restaurants can’t afford to to manage their own operation and more or less have to use Grubhub et. al. to reach customers. This is the cycle Spread and Lunchbox are hoping to break with their newfound partnership. 

The acquisition will also widen Lunchbox’s potential customer base to include independent, single-location establishments and mom-and-pop restaurants. (The company’s platform currently services multi-unit chains.)

The acquisition comes at time when more companies are emerging claiming to be an alternative to the major third-party delivery services. Companies like Ritual, Fare, and Inhousedelivery.com make claims similar to Lunchbox/Spread about reducing restaurants’ reliance on those services.

At the same time, third-party delivery services are offering their own alternatives to high fee caps. Grubhub debuted a “commission-free” option earlier this year, and DoorDash launched a tiered pricing structure for such fees. While these services come with their fair share of fine print, they’re nonetheless evidence that third-party delivery isn’t going to take the competition lying down.