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DeliverZero

November 23, 2022

Reusable Takeout Containers Gain Traction at Universities, But What About Restaurants?

Like everywhere else, colleges saw a jump in takeout food and delivery during the pandemic as students avoided the dining hall amidst stringent social distancing rules at the height of COVID. However, even as things normalize, on-the-go food options put into place during the pandemic remain popular due to the convenience they afford busy college students, resulting in a lot of single-use containers making their way toward landfills.

But the good news is that a growing number of schools are trying to find more sustainable options, including reusable containers. One such school is Texas State University, which has partnered with food service management provider Chartwells to deploy a container system built by reusable container startup Ozzi according to an announcement sent to The Spoon.

According to the announcement, Texas State has over two thousand reusable containers in circulation. The way it works is students pay $6 for an O2GO container, get their food to go, and, when they are done, students can return rinsed containers at a student dining center, where they are given tokens for returned containers. Tokens can be traded in for clean containers when the student returns to get more food.

OZZI has been at it for a while, deploying its reusable container system to universities across the country. They even have a kiosk that handles the return of the containers – each of which can be used up to 300 times – and give students credit for the return. You can see how the system works in the video below:

While systems like that from OZZI have been rolling out at places like Texas State, UC Berkeley, and Cornell over the past few years, we’ve seen comparably less action in reusable containers for restaurants. However, some companies are working on the challenge, including a startup called DeliverZero, which has been getting restaurants to deploy their reusable container system around New York City. As of early this year, the company has convinced 150 New York City area restaurants to come on board and has also signed Doordash and Caviar to trials.

Despite DeliverZero’s early success, there are several challenges in getting restaurants to adopt reusable containers compared to university diners. Unlike university dining halls, restaurant to-go customers aren’t dining at the same place on a daily or weekly basis, which makes it hard for them to return the containers. They also aren’t likely to have their daily meals charged to the same dining services account every day, which makes it hard to create a financial reimbursement system to incentivize diners to use a container system. Finally, restaurant owners have a thousand battles to fight every day to maintain profitability, and maintaining a reusable container system is probably far down the list.

Despite this, a growing number of consumers are becoming mindful of the packaging waste steam they are contributing to through food delivery and innovations to support reusable containers at restaurants. One such system is being created by Perks99, an Ontario-based company working on a reusable container system built around their food drop-off lockers tailored toward office workers. The company will work with office managers to deploy the drop-off lockers in lobbies and give workers the option to subscribe to a certain number of meals per month.

Ultimately, the success of Perks99, DeliverZero, GoBox, or individual chains like Chop’d, who have deployed reusable container programs, will be up to the diners and the delivery infrastructure providers. As more students exposed to systems like OZZI exit university and enter the workforce, there’s a good chance these student-turned-employees may opt into reusable container systems for employees. Let’s hope more third-party delivery providers like DoorDash and UberEats continue to experiment here, and maybe we’ll get something resembling the adoption rate we’re starting to see at universities.

February 28, 2021

The Restaurant Trash Problem Is Actually a Major Opportunity

This is the web version of our restaurant tech newsletter. Sign up today to get updates on the rapidly changing nature of the food tech industry.

Here’s a small silver lining alert. The restaurant industry’s urgent shift to off-premises meal formats has created an urgent need to combat packaging waste. And people are finally starting to do something about it.

Let’s not sugar-coat the issue too much. Packaging waste is a major problem, one to which restaurants contribute greatly. Prior to the pandemic, some cities were taking steps to reduce or ban single-use plastics, and materials like polystyrene (aka Styrofoam) were out of vogue. All that changed when the pandemic forced the entire restaurant industry to rely on to-go orders for sales and regulations and company policies began banning the use of reusable containers for health and safety reasons.

In fairness to many restaurants, alternative forms of packaging (compostable, reusable, etc.) are expensive, and can even require operational changes for the staff. It should not be expected that these businesses suddenly come up with strategies for more eco-friendly packaging, particularly not at a time when many still struggle to keep the lights on and many more have shut down forever.

But those that can explore alternative packing options should, and of late we have seen some encouraging developments in this direction:

  • Last week, Just Salad announced its famed reusable bowl program would be available for digital orders. The company also highlighted, in its latest sustainability report, its Zero Waste delivery program, which integrates reusable packaging into the delivery order process.
  • Sweetgreen last week announced its plans to go carbon neutral by 2027. Details were pretty high-level, but the company already uses compostable packaging for its to-go orders, so it would not be surprising to see some additional developments in this area in the future. 
  • Just Salad was also in the news last month for the launch of its new meal kit service that’s free of both extraneous portion sizes and plastic packaging.
  • At the end of 2020, Burger King announced a partnership with circular packaging service Loop to pilot reusable food and beverage containers this year.
  • Ditto for McDonald’s, which struck a similar deal with Loop in the second half of 2020. The mega-chain has other circular solutions in place, too, like its Recup system in Germany.
  • There are plenty of other notable efforts being made here, from individual restaurants, like Zuni in California, to companies like NYC-based DeliverZero, which partners with restaurants to fulfill delivery meals with reusable containers. Additionally, Dishcraft Robotics lends some automation to the process of collecting and cleaning reusables at restaurants.

The bigger point here is that while we have a massive packaging problem on our hands right now, we also have a massive opportunity to change that and introduce new innovations in the process. Those innovations could simultaneously curb our single-use plastics problem while also addressing things like food quality, tamper-resistant packaging, and other elements that have surfaced over the last year. The public’s appetite for to-go orders is not going away. That means the opportunity to change our relationship to packaging is around for the long-haul, too.

Innovation won’t come as a one-takeout-box-to-rule-them-all format. Instead, what we’re more likely to see is collaboration among restaurants, material scientists, package designers, and many others. Nor will the issue be solved next week. Weaning an entire industry off single-use plastics will be a complex, costly undertaking that will probably meet a lot of resistance and a lot of failures.

None of that is a reason to ignore the packaging problem and opportunity. Based on developments from the above companies, many are already willing to start changing the system for everyone.

Restaurant Tech ‘Round the Web

White Castle’s recent ghost kitchen effort in Orlando generated so much demand the location had to close will not reopen until spring, when the chain finds a location better suited to meet that demand.

Food delivery search engine MealMe has closed a $900,000 pre-seed round led by Palm Drive Capital. Slow Ventures and CP Ventures also participated in the round.

For the second year in a row, the National Restaurant Association’s annual conference is cancelled due to COVID-19. Instead, the Association will host a series of virtual events throughout the rest of 2021.

January 9, 2021

Food Tech News: DeliverZero Reduces Food Delivery Waste, N!ck’s Ice Cream Partners with Perfect Day

Welcome to our weekly Food Tech News round-up. This week, we have stories on DeliverZero’s waste-free food delivery, a partnership between N!ck’s Swedish Ice Cream and Perfect Day, changes to Albertson’s delivery fleet, and Daily Harvest’s new product.

DeliverZero uses reusable packing for food delivery

DeliverZero is a third-party food delivery service (like DoorDash or GrubHub) based in NYC, but what differentiates the company is its use of reusable packaging. When the food is delivered to customers, it arrives in reusable clamshell packaging made from BPA-free polypropylene plastic. Customers won’t have to worry about a pileup of reusable to-go containers, though. For each order they make, a delivery driver will also retrieve the previous order’s packaging and return it to the participating restaurant. If the packaging is not returned within six weeks, the customer gets charged $3.25.

At the moment, DeliverZero has partnered with over 100 restaurants in NYC. The company also announced that it will soon be expanding to Amsterdam and Chicago.

N!ck’s Swedish Ice Cream uses Perfect Day’s tech to create vegan ice cream

N!ck’s Swedish Ice Cream shared in a press release that it recently partnered with Perfect Day to produce several new vegan flavors. The company will use Perfect Day’s animal-free dairy proteins and a plant-based fat called EGP (N!ck’s has 14 patents for this) to create an ice cream that boasts a smooth and creamy texture. The new line will contain seven vegan flavors, will be keto-friendly, and contain no added sugars. Three flavors, Swedish Mint Chip, Choklad Choklad, and Karamell Swirl, are currently available for purchase on N!ck’s website, and one pint goes for $9.99. The rest of the flavors will be available on the website in February, and several undisclosed retailers will carry the ice cream in Spring 2021.

Albertsons will stop operating its own delivery fleet in several markets

Albertsons announced this week that it will stop using its own delivery fleet to fulfill grocery deliveries in several markets starting February 27, 2021. Which states and markets this will affect remains to be announced, though it was confirmed that California-based Albertsons, Vons, and Pavilions will cease using their own delivery fleets. The grocer will instead transition to using an undisclosed third-party delivery service. In the past, the company has used a combination of third-party delivery services like Instacart and Shipt with its own fleet. Due to the increase in home deliveries, the company said this transition will allow Albertsons to compete more effectively in the home delivery market.

Daily Harvest adds plant-based Mylk as an option

Daily Harvest is a trendy subscription service that targets millennials with delivered boxes of pre-made smoothies, bowls, and flatbreads. Now, the company has added a new product called “Mylk.” The plant-based milk comes in two flavors, vanilla and plain, and contains no artificial flavors, fillers, or gums. Interestingly, the almond milk does not come in liquid form, but rather a triangular cube that must be blended with water to create liquid almond milk. One order of almond Mylk costs $7.99 and makes eight 8-ounce servings.

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