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The Spoon

Daily news and analysis about the food tech revolution

QSR

ConverseNow Acquires Drive-Thru Voice AI Specialist Valyant AI

Today, ConverseNow announced that it has acquired drive-thru conversational AI specialist Valyant AI. According to the announcement about the deal – the terms of which were not disclosed – the entire Valyant AI team will be retained post-acquisition.

Until now, ConverseNow has largely succeeded in winning restaurant chain business through call center voice automation. With this deal, ConverseNow brings a drive-thru AI specialist into the fold, jumpstarting its efforts to penetrate the growing market for AI-voice-assisted drive-thru technology.

Valyant AI, which started quickly out of the gate in 2019 with a win at a Techcrunch automation and AI pitch competition in 2019, has since run trials with its Holly voice AI at CKE and Checkers. The company’s technology, which is differentiated from ConverseNow’s in that the AI runs locally on proprietary hardware (ConverseNow’s AI runs in the cloud), also includes a generative AI training application called AI Employee Assist, which restaurant staff can ask questions and receive instant responses. According to the announcement, the Valyant AI technology will be integrated into both the drive-thru and tables by the end of Q3.

The deal is another signal that the restaurant voice AI and automation is heating up. Other providers, such as Presto and Soundhound, have been growing their installed base for both phone and drive-thru automation solutions, while large chains like Wendy’s have been developing their own voice AI technology. McDonald’s, which had been running a trial of voice assistant powered by IBM, recently announced they were sunsetting the initiative and would evaluate other voice AI technologies and select another solution by the year’s end.

Beyond the obvious employee cost-saving benefits of voice automation, QSRs also see opportunities to increase total order size through upselling capabilities. According to ConverseNow, its technology can detect conversational nuances and personalize orders based on contextual data and information gained in real time during the order process.

Wendy’s to Launch 700 Ghost Kitchens Via Reef Partnership

Wendy’s announced this week it will expand its number of delivery-only kitchens via a partnership with ghost/mobile kitchen provider Reef. With the deal, Wendy’s plans to open 700 more of these kitchens over the next five years in the U.S., Canada, and the United Kingdom.

Wendy’s and Reef first announced their partnership in 2020, when the two started testing delivery-only kitchens in Canada. The partnership is part of Wendy’s ongoing strategy to be operating 7,000 units globally by the end of the year, according to the company’s earnings call this past week. The QSR chain plans to have 30 percent of all its new units come from nontraditional locations.  

Reef’s mobile kitchens certainly count as “nontraditional” when it comes to QSR formats. The company, which raised $700 million last year, houses ghost kitchens in mobile trailers that can be parked more or less anywhere there is underutilized real estate and demand for restaurant food. Right now, the company partners with existing restaurant chains that want to boost the number of delivery-only orders they fulfill. Saladworks, Wow Bao, and BurgerFi are just a few names using Reef’s mobile kitchen infrastructure. 

“We are still very early in our nontraditional development journey, but we are encouraged by the results that we’ve seen with Reef, and we’ll continue learning alongside them throughout this partnership as we grow our brand,” Wendy’s CEO Todd Penegor said on the earnings call.

Partnering with Reef on mobile kitchens allows Wendy’s to expand its new build-outs faster, since there’s less development time needed compared to a traditional QSR location with a dining room attached. Wendy’s decision to go the mobile kitchen route differs from other QSRs like Burger King, McDonald’s, and Taco Bell, all of whom have recently announced new store prototypes that emphasize digital ordering and delivery. In those cases, however, the units are stationary and have yet to be built out en masse.

Revenue in the online food delivery segment in the U.S. is expected to reach $32 billion in 2021, which is about 15 percent of the total U.S. fast food market today. That suggests a long-term trend towards non-dine-in formats for QSRs and more focus on the “hub-and-spoke” model where the kitchen is the central piece of the restaurant serving multiple different sales channels. QSRs, in particular, are well suited to the non-dine-in format because customers aren’t typically going to these establishments for the ambiance or experience one expects in a dining room setting.

For their part, Wendy’s and REEF expect to open approximately 50 delivery kitchens in 2021, with the remainder launched by 2025. 

ConverseNow Raises $15M for Restaurant AI Assistant Tech

ConverseNow, which makes an AI ordering assistant for restaurants, announced today that it has rasied a $15 million Series A round of funding. The round was led by Craft Ventures with participation from existing investors including LiveOak Venture Partners, Tensility Venture Partners, Knoll Ventures, Bala Investments, 2048 Ventures and Bridge Investments. This brings the total amount of funding raised by ConverseNow to $18.3 million.

ConverseNow’s lead product is its voice-based assistants dubbed George and Becky. These automated assistants can understand and take orders from customers who simply say what they want as they pull up to a restaurant’s drive-thru. During a recent video chat, ConverseNow Founder and CEO Vinay Shukla told me that the company’s assistants are currently live at 750 restaurant locations, that they achieve an 85 percent order accuracy rate, and that they increase check size by 25 percent.

But ConverseNow is a much bigger play than simply automating the drive-thru. The company is developing a suite of tools to automate order-taking in many different restaurant scenarios. Shukla said he sees ConverseNow as like a Twilio for restaurants, providing one artificially intelligent glue that can power ordering via drive-thru, mobile app, phone, kiosk, etc.

Shukla told me that while ConverseNow can save on labor costs for a restaurant, it’s also being developed with the restaurant operator in mind. “Nobody is talking about the operator experience,” Shukla said, “[Customers] get frustrated, which is causing a lot of attrition. The experience for the operator at the store is not great.”

We have steadily been seeing more adoption of AI at QSRs over the past couple of years, especially in the drive-thru. A company called 5Thru is connecting license plates with customer profiles to provide order history as well as upsell recommendations (KFC was at one point considering adopting this type of service). Valyant AI is another startup that has implemented voice-based ordering for QSRs. More recently, last month McDonald’s said it was testing AI-based drive-thrus based on Apprente (which McDonald’s acquired in 2019) at 10 Chicago locations.

Shukla said it will use the new funding to further develop and scale up its products.

Miso and Lancer Worldwide Aim to Automate Beverage Dispensing for QSRs

Miso Robotics is making moves to expand its restaurant automation beyond fryers and grills into QSR beverage stations. Last week Miso announced a partnership with Lancer Worldwide, a global manufacturer of beverage dispensers, to develop an automated, intelligent system designed to speed up and organize drink orders.

The forthcoming beverage dispenser will integrate with a QSR’s POS system, so when a drink order comes in the machine will grab the right size cup, fill it with ice, pour the ordered drink and seal it. Additionally, the system will intelligently group drink orders together under color-coded LED lighting, so its easier for an cashier to place them with the correct order.

The machine is still in the prototyping stage, so the exact size and form factor are still yet to be worked out. It will, however, hold 24 flavors of carbonated and non-carbonated drinks. Details around pricing and business model (lease versus direct sale) have yet to be worked out as well.

Miso Robotics and Lancer Worldwide automated beverage dispenser demo

Up to now, Miso has been best known for Flippy, the robot that grills burgers and works the deep fryer at restaurants. The company also recently released a camera+software product called CookRight that allows smaller restaurants to get the same precise automated cooking of Flippy without the need for a robot installation. But honestly? While the details still need to worked out, this beverage robot could be a much bigger business for Miso than Flippy.

Not every QSR or restaurant serves burgers or deep fried foods — but they all offer drinks. Flippy requires installation in kitchens (that are big enough to begin with) that can limit exactly where human workers can stand and walk to avoid the robot as it moves about. The Miso/Lancer beverage dispenser will fit on a countertop and, based on how its described, easily slide into a QSR employee’s existing workflow.

The new dispenser is also arriving at the right time. Big QSR brands like Burger King, Chipotle, Shake Shack, KFC and more are pivoting to more drive-thru centric model and long wait times to pick up orders are a “dealbreaker” for customers. Adding automation to the beverage portion of an order could speed up expediting times, and if tied into AI-based ordering systems, human workers could spend less time placing cups under spigots and more time on customer service and other more complicated tasks.

McDonald’s Testing AI-Powered Drive-Thrus in Chicago

McDonald’s has started testing out drive-thrus that use artificial intelligence systems, rather than humans, to take orders. CNBC reported yesterday that the new automated drive-thrus are in use at 10 Chicago McDonald’s locations.

The new system is based on the voice platform built by Apprente, which McDonald’s acquired in 2019. According to McDonald’s, restaurants using the system are seeing an 85 percent order accuracy rate, with only about one-fifth of orders requiring human intervention.

AI-powered drive-thrus can reduce customer wait times and allow restaurants to shift its in-store workforce. A computer that understands natural language is always on and available to take orders. It could also be tied in with other automated systems that know a customer’s purchasing history to automatically make recommendations. With improved understanding accuracy, a restaurant would no longer need a dedicated person to take (or confirm) a drive-thru order, allowing more people to do more customer service or expedite orders.

McDonald’s CEO Chris Kempczinski told Alliance Bernstein’s Strategic Decisions conference that a big issue ahead for the AI-powered drive-thru is scaling. CNBC reports Kempczinski as saying “Now there’s a big leap from going to 10 restaurants in Chicago to 14,000 restaurants across the U.S., with an infinite number of promo permutations, menu permutations, dialect permutations, weather — and on and on and on.”

The Apprente acquisition appears to be working out better than Dynamic Yield, which McDonald’s also acquired in 2019. Dynamic Yield generated automated menu recommendations based on factors like weather, and was supposed to be integrated into self-service kiosks and drive-thrus as well. However, this tech didn’t yield the results McDonald’s was looking for and in March of this year The Wall Street Journal reported McDonald’s was looking to sell part of Dynamic Yield.

While McDonald’s Apprente acquisition may have pre-dated the pandemic, last year certainly accelerated the need for enhanced drive-thru technology as dining rooms were forced to shut down. In a February 2021 survey, BlueDot reported that 91 percent of respondents said they had visited drive-thrus the previous month and that long wait times were a “dealbreaker.” Most major QSRs have been doubling down on their drive-thru capabilities to meet this demand, adding capacity and building restaurants around takeout rather than dine-in.

In addition to adding AI assistants, McDonald’s has previously said that it will add other features to its drive-thru such as express lanes for digital orders and conveyor belts to carry food out to customers.

Kempczinski also told the conference that McDonald’s is also exploring ways to automate parts of the kitchen such as the grill or fryer. However he said any such move in the back of the house is still a more than five years out as the technology is too expensive right now.

Plant Power Fast Food Chain Raises $7.5M Series A

San Diego, California-based fast food restaurant chain Plant Power announced today that it has completed a $7.5 million Series A round of funding. The round was led by Helia Capital USA, Eat Beyond Global Holdings and Batta Foods, with participation from Aileen Getty and other individual investors.

As its name spells out, Plant Power is a fast food chain that offers an entirely plant-based menu. According to the press announcement sent to The Spoon, Plant Power has seven locations up and running in Southern California, with eight more stores opening in locations including Sacramento, Hollywood, and Las Vegas. The company said it reported year-over-year enterprise-wide retail net sales growth of more than 50 percent from 2019 to 2020.

While those growth stats are vague, the general numbers line up with the recent trajectory of plant-based foods. According to the Good Food Institute, U.S. sales of plant-based foods grew 2 times faster than overall food sales in 2020. Additionally, sales of plant-based foods in the U.S jumped 27 percent in the past year, and 43 percent in the past two years to hit $7 billion. The plant-based meat category (including burgers) saw its category sales increase by more than $430 million from 2019 to 2020 and the plant-based meat market is now worth $1.4 billion.

There’s a lot of plant-based momentum in QSRs right now. Copper Branch is a chain in Canada is all plant-based, and even Starbucks is testing a full plant-based menu at one of its Seattle locations. Growing consumer sentiment for plant-based options has even spurred traditional QSRs like Burger King to launch the Impossible Whopper, and both McDonald’s and Yum Brands have partnered with Beyond Meat to create more plant-based meat options for their menus.

Plant Power said it will use its new funding to continue its expansion plans and focus on new corporate unit development.

Burger King Launches a Ghost Kitchen Initiative in the UK

Burger King said over the weekend it is trialing its first-ever delivery-only restaurant, a location in London, UK that opened on Sunday. The burger chain said this new venture has the potential to reach over 400,000 customers in the North London area.

For its first delivery-only initiative, Burger King has partnered with FoodStars, the commissary kitchen company bought by Travis Kalnick’s CloudKitchens back in 2019. Customers will be able to order meals for delivery via third-party service Deliveroo. Service from Just Eat and Uber Eats will be available soon, too. 

The expansion to delivery-only service comes just as the UK is in the process of opening back up. From today (May 17), restaurants, cafes, pubs, and bars in England, Scotland, and Wales are finally allowed to serve customers inside, with certain restrictions around social distancing and the size of groups. But while consumers will no doubt flock back to restaurant dining rooms, food delivery is expected to remain a popular option for many. This is less about a fear of the dining room and more about new habits getting established during COVID-19-related lockdowns. Many consumers who had never before ordered delivery got comfortable with the concept during the last year or so, and will continue that behavior for the long term.

Burger King is one of many major QSR chains responding to this change. Chipotle announced its own ghost kitchen initiative in 2020, for example. And many chains are redesigning overall store designs to accommodate more off-premises formats. On its recent earnings call, Wendy’s said 30 percent of a planned 1,200 new locations will be “nontraditional units,” a label that includes delivery-only locations and ghost kitchens. Like Taco Bell and Burger King, the chain has introduced new store designs that feature little or no dining room space.

Burger King has not yet said if its ghost kitchen initiative will expand to other UK locations and eventually to other countries. Presumably, the chain will first test the success of this endeavor before announcing any new delivery-only locations.

A Plant-Based Restaurant Redefines the QSR

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I’ve been writing a lot about the plant-based QSR lately, so when I recently got the chance to visit the new location of Copper Branch, a plant-based restaurant company from Canada, I jumped at it. 

Across its franchise locations, which span Canada and are now making their way into the States, Copper Branch offers quick-service food that’s entirely plant-based. The company’s latest location to open, and its second in the U.S., is in Nashville, Tennessee — conveniently down the street from my house. 

Upon visiting, however, it became clear that food is only one part of Copper Branch’s mission. The company is, it seems, less about selling plant-based foods and more about reinventing what it means to be a quick-service restaurant (QSR). 

Despite the popularity in recent years of items like the Impossible Whopper and the Beyond Taco, the average QSR is better known for greasy burgers, salty fries, and sodas drunk out of non-recyclable cups. I love an occasional trip to the drive-thru as much as the next person, but those indulgences come with health and planetary costs that are becoming increasingly more problematic in light of climate change and chronic diseases like diabetes and obesity.

Copper Branch’s model is compelling because the company’s goal is bigger than simply making plant-based foods accessible to mainstream consumers’ palates. Over a recent call, CEO Trish Paterson talked about the company’s “triangular focus” when it comes to sustainability. The goal is to strike a balance between human health, animal welfare, and planetary health when it comes to food, packaging, operations, and everything else it takes to run a restaurant. The bigger-picture mission is to “change people’s mindsets of what fast food really is.”

In the case of Copper Branch, fast food means partnerships with companies like Eat Just (eggs) and Field Roast (cheese, meat) to recreate scrambles, burgers, chili, and other dishes made entirely from plants. At the same time, the company also prioritizes local partnerships for certain items, which is itself a form of sustainability. For example, the Nashville location serves coffee from Bongo Java, a beloved local roaster and one of the oldest independent coffee shops in town. Paterson says the local partnerships are intentional and a means of supporting local business and communities surrounding each Copper Branch location. Franchisees are expected to spend “a percentage of their revenue on local activities and giving back to their own communities,” which includes sourcing coffees, desserts, and other items from around town.

Packaging is another important part of the operation. Copper Branch has used compostable straws and cutlery for years, as well as compostable water bottles. A little more challenging are the to-go boxes for the food, which have to be lined with plastic to keep food hot during transport. Paterson said the company has considered a “bring your own container” program, though for the moment that’s on hold due to the pandemic. 

All of this sustainability doesn’t come cheap, though. Paterson said right now the biggest challenge for her company is the price point of menu items. For instance, a “Copper Burger Deluxe” at the restaurant costs $8.95. An Impossible Whopper is $5.89 by comparison.

“The ingredients that we use will never lend themselves to put us on that price point,” she says of the standard QSR menu. Instead, Copper Branch sees its job as helping consumers to understand the higher price points as “investing” in their own health and that of the planet.

I’ve said it before, I’ll say it again: Getting consumers in front of actual products, preferably eating in the restaurant, are important parts of educating consumers. That education doesn’t have to be preachy, either. A good meal speaks for itself. If that meal can be got as quickly and conveniently as the experience at a place like McDonald’s, consumers may be willing to pay a little more. 

Even if they’re not, the price point for plant-based, sustainably packaged foods may yet come down. For her part, Paterson believes we’ll get closer to that point. “The more advanced research and development gets, the lower the cost structure becomes, and those products will become more mainstream.”

Restaurants ‘Round the Web

CloudKitchens, the uber-secretive startup from ex-Uber boss Travis Kalanick, is reportedly Uber all over again, and definitely not in a good way. Business Insider recently reported on tensions and a mass exodus of staffers from the company.

Speaking of food delivery, a group of food delivery workers in NYC, known as Los Deliveristas Unidos, recently took to the streets to protest working conditions. The city’s largest union of service worker supported. Eater NY has the full story.

The latest Yelp Economic Average report recently found that restaurant openings were up in the first quarter of 2021 compared to one year ago. However, they fell short of 2019 levels. 

Rise of the Plant-Based QSR

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Those of us of a certain age will remember a time when eating “vegan” at a QSR meant the Wendy’s salad bar. 

Fast forward to 2021, and advances in both food technology and the restaurant biz have made the concept of eating vegan (which we now call “plant based”) much more palatable to the mainstream. The names “Beyond” and “Impossible” are on most major QSR’s menus today. Eat Just’s plant-based egg products are in a growing number of fast-food breakfast items. And recently, two more announcements from major QSRs dropped that indicate we’re at fast approaching a major turning point for menus in the QSR realm.

On its most recent earnings call, Starbucks said it had turned one of its Seattle, Washington locations into a test area for a “100% plant-based food menu.” Starbucks CEO Kevin Johnson suggested that this test site is in response to what he sees as “the most dominant shift in consumer behavior,” which is the move to plant-based foods. The shift, said Johnson, is evident in both food and beverages. 

The move to offer plant-based meals to customers isn’t entirely new for Starbucks. The chain debuted Beyond Meat products in China last year and carries Impossible sausage sandwiches at its stores in the U.S. It also offers a number of plant-based milk alternatives. 

But this new test store in Seattle is the first time the chain has gone full-tilt on a plant-based menus. All food items on the Starbucks menu will be vegan, with animal-based proteins being replaced by plant-based counterparts. 

Also recently, McDonald’s announced it’s finally testing its McPlant burger, a vegan offering the mega-QSR developed with Beyond Meat. While this is less of a monumental change than overhauling an entire menu, McDonald’s has up to now has made few moves when it comes to introducing plant-based foods to its menus. (A brief trial in Canada is the exception.) Though this McPlant pilot is pretty limited right now — Denmark and two cities in Sweden — it is also likely also in response to a growing consumer demand for plant-based proteins.

All that said, demand shows up differently in different parts of the world. Sweden and Seattle are obvious choices to test plant-based wares, given the demographics that reside in those areas. In the U.S., at least, seven in 10 people classify themselves as “meat eaters,” according to recent data, and there are undoubtedly parts of the country where a plant-based Starbucks would fail harder than the Wendy’s salad bar expansion did in the ‘90s. 

For now, that is. As more tests like that of Starbucks are conducted, and major chains like McDonald’s introduce more plant-based items, the concept of a full-vegan fast-food meal will grow less foreign to more customers. I doubt it’s long before we see plant-based QSR locations popping up in certain markets like, NYC, San Francisco, and even newly popular cities like Austin and Denver. How the plant-based QSR fares in these markets will tell us a lot about when it will head to other parts of the country.

The Restaurant Robots Are Coming

Of course we’ll know we’ve really hit a turning point when vegan Starbucks locations start delivering our plant-based breakfast sandwiches via robot.

I just made that up, but as The Spoon’s Editor in Chief Chris Albrecht points out in his new Spoon Plus report, we will soon see these delivery bots rolling about our sidewalks, college campuses, and city streets.

Chris’ report breaks down the different companies currently leading the space, including Starship, Kiwi, Nuro, and Refraction, and where these players’ opportunities lie in making robot delivery more common for the average consumer.

In the restaurant realm, there are a few advantages to robot delivery. It’s first and foremost a more contactless delivery method, which is an obvious plus at a time when COVID-19 vaccines aren’t widespread. Robots can also work continuously without the need for a break and could potentially be cheaper for restaurants. The flip, of course, is that widespread robot deployments would take jobs away, a point that cannot be ignored in any discussion about restaurant robots.

Chris delves into all of this and much more in his report, which you can access by becoming a Spoon Plus member. Spoon Plus members get access to all of our market reports, maps and deep dives that give you an advanced understanding of where the food tech industry is headed. Get the goods right here.

Restaurant Tech From Around The Web

Luckin Coffee, one of China’s largest coffee chains and Starbucks’ main competitor in that market, is filing for bankruptcy. The company is still dealing with the fallout from a fraud scandal from 2020. Luckin said that stores would remain open for business.

The California Supreme Court has declined to hear a lawsuit filed this week seeking to overturn Proposition 22, the controversial ballot measure that passed in November and exempts companies like DoorDash and Uber from classifying workers as employees. the Court suggested plaintiffs refile the case in a lower court. 

If it feels a little off to you that third-party delivery services like DoorDash and Uber Eats are spending millions on themed Super Bowl ads (Cookie Monster and Wayne’s World, respectively) while restaurants and restaurant workers continue to struggle, check this quick read from the folks at Eater Chicago. In the words of Eater writer Ashok Selvam, “can you imagine Wayne and Garth using a third-party service to order from Stan Mikita’s Donuts? Game off.”

McDonald’s Starts Testing McPlant Burger in Europe

McDonald’s plant-based burger, co-developed with Beyond Meat, is officially on the chain’s menus in Denmark and Sweden, according to a company press release (h/t LIVEKINDLY).

As with other Beyond products, the primary protein ingredient in the McPlant is pea protein, with rice protein a secondary ingredient. The product is for sale as a burger topped with lettuce, cheese, tomato, pickle, onion, mayonnaise, mustard, and ketchup. 

Staunch vegans beware, though: according to Bloomberg, the patty is cooked on the same grill as McDonald’s regular beef burgers. For those trying to avoid any kind of animal-based protein, this will likely be a major turnoff, though customers buying plant based patties for more environmental reasons may not find the situation as problematic. Burger King faced a similar issue with the Impossible Whopper, and customers can now request their plant-based order be cooked on a different grill. It is unclear if McDonald’s will offer a similar choice.

McDonald’s is one of the last of the major QSRs to offer a plant-based option on its menu, outside of a test the chain did with Beyond in Canada in 2019. When McDonald’s made the initial announcement around this new burger back in November, it was unclear that Beyond was even involved as the supplier. While that issue has been clarified for now, it’s equally unclear whether Beyond will continue supplying the plant-based patties for a wider McPlant rollout, or if/when said patties will be coming to the U.S.

The McPlant trial is currently taking place until March 15 in Sweden (in Linköping and Helsingborg) and April 12 in Denmark. Few details have been offered as to whether Beyond will continue to be the supplier as McDonald’s releases plant-based menu items to a wider audience.  

Miso Robotics Equity Crowdfunds $17M, Extends Campaign to Raise $30M

Miso Robotics, the company behind Flippy the cooking robot, announced today that it raised $17 million during its equity crowdfunding campaign from April through November of last year.

In its press announcement, Miso said that its campaign was the highest-grossing technology deal ever on the SeedInvest equity crowdfunding platform. The $17 million was only a little more than half of the $30 million the company had intended to raise, but Miso will be extending this equity crowdfunded Series C round into this year to try and hit that $30 million milestone. Miso has previously raised $15 million in financing and $3.3 million in venture debt.

Miso’s crowdfunding came during a tumultuous time for the restaurant industry, and running an equity campaign during a global pandemic was both bad and fortuitous for the food robotics company. On the one hand, COVID-19 decimated the restaurant industry, shuttering thousands of restaurants and limiting Miso’s potential customer base. Stadiums, where Flippy was already making in-roads as an automated fry cook, were also shut down.

But this crisis also meant opportunity for Miso. While many restaurants were closed, deep pocketed QSRs were able to weather the tumult and were in more of a position to afford Flippy. In a high-profile example, after an initial pilot in July of last year, White Castle quickly expanded its use of Flippy to 11 of its locations.

Buck Jordan, Co-Founder, President & Chairman of Miso Robotics, told me by phone this week that the pandemic caused a “massive” increase of QSRs interest in Miso’s technology. According to Jordan, that interest is being driven by QSR staffing issues, the ability to create social distancing in the kitchen and the ability to transition workers into roles that more involve cleaning and fulfilling delivery and takeout orders.

With restaurants emphasizing delivery and takeout options, there will most likely be sustained interest in technology that can keep workers engaged with off-premises order fulfillment and customer service.

In addition to the funding news, Miso also announced the appointment of Mike Bell as CEO and Jake Brewer as Chief Strategy Officer. Bell was previously COO at Ordermark and President and COO at Bridg. Brewer was formerly VP of Restaurant Excellence at CKE Restaurants, the parent company of Carl’s Jr. and Hardee’s.

Top 3 Tech Trends for QSR Redesigns

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The “next-generation” restaurant format isn’t new, as QSR brands like Dunkin’ and McDonald’s can attest. But the restaurant industry’s sudden and in many ways irrevocable shift to off-premises formats in 2020 certainly increased both the number of restaurants revamping their store formats and the speed at which they are doing so.

Those revamps come in many forms and features: BK’s floating kitchens, Applebee’s adding drive-thru lanes, everyone’s near lack of dining room space, to name a few.

And since everyone from Sonic to Del Taco seems to be announcing some kind of format revamp — physical, virtual, or both — these days, I thought it’d be worthwhile to round the top common denominators up to get a hint at which tactics will likely become widespread across the restaurant biz in the near future.

Herewith, are my top three QSR redesign trends:

More Curbside Pickup Spots

Digital order/payment capabilities are a must-have for restaurants now, and this technology coupled with curbside pickup is something we will see a lot more of in the near future. 

For many restaurants, offering curbside pickup options is cheaper than building out a drive-thru lane and window. Outside of the technology, all a restaurant needs is to dedicate a few parking spots close to the building, some signage, and a staff person to run the orders out. Bigger brands may have the money to retrofit their existing stores with drive-thru, but for many mid-size and smaller restaurants, curbside is a more realistic option when it comes to fulfilling more off-premises orders.

For customers, digitally enhanced curbside pickup is increasingly seen as a cheap, fast alternative to delivery, which is getting more expensive for customers. (More on that in the next section.) 

Curbside tech itself is getting some improvements to make the method faster and more efficient, Panera’s geofenced curbside initiative from 2020 being the obvious example. While efforts like these are the anomaly right now, more chains will adopt them and other curbside tech in the coming months.

Drive-thrus, Cruise-thrus, Chipotlanes

On the other hand, those that can swing the cost of adding a drive-thru should do so. 

Some chains, like Applebee’s, are testing out the drive-thru concept for the first time. Chipotle is another good example of a restaurant chain that never offered the format before and has now shifted its entire strategy to accommodate more “Chipotlanes.” Ditto for Sonic, a restaurant better known for drive-ins than drive-thrus, and Pokeworks forthcoming “cruise-thru.”

Others, like QSRs that have always offered drive-thru, are expanding the format. Literally. Double, and triple drive-thru lanes, with some dedicated solely to mobile orders. are becoming the norm at the KFCs, Dunkin’s, and BKs of the world.

The common denominator of this common denominator is that tech is integrated into most of these drive-thru concepts, whether that’s through accommodating more mobile app orders or uses of artificial intelligence to improve order accuracy and upselling.

Mobile-Only Zones and Dedicated Delivery Areas

As anyone who’s been in a drive-thru line lately knows, restaurants are struggling to fulfill the influx of off-premises orders quickly. Many restaurants are addressing this by dedicating certain drive-thru lanes to mobile orders and for delivery drivers picking up orders. Some, like Dunkin’, have done this for years. Others, like Shake Shack, are new to the concept. Still others, namely Pokeworks, have taken the concept one step further and do not accommodate onsite ordering in the drive-thru lane at all.

Meanwhile, to keep third-party delivery drivers waiting on orders from taking up all the curbside spots, many restaurants are also building dedicated areas for delivery pickups. Del Taco, for example has both dedicated drive-thru lanes and pickup shelves for delivery orders.

None of the redesigns discussed above have been widely deployed yet; we can expect more of that in 2021. At that point, new standards for store designs will start to trickle down from the major brands listed here to mid-sized and smaller ones, further cementing the role of off-premises across the restaurant industry.

Postmates: the Latest Delivery Service to Raise Its Prices Post-Prop 22

After saying prices would remain the same for customers following the successful passing of Proposition 22, Postmates has now raised those same prices as high as $2.50 per order.

Postmates’ about-face follows similar price increases from Uber and DoorDash, according to a report from Eater San Francisco. It’s also a contradictory to the tagline these companies were pitching in the ramp-up to the Nov. 3 election—that Prop. 22 passing would allow them to continue operating in California and that prices for customers would not increase.  

Prop. 22 passed in a 58 to 42 percent vote, which allows gig-economy the aforementioned companies to continue classifying their workers as independent contractors. Translation: Uber et al. do not have to pay worker benefits like healthcare, workers comp, and sick leave.

The delivery companies said that they would offer their own benefits package to workers that include a stipend for healthcare. The recent price hikes appear to be geared towards paying for those benefits. For example, the Postmates website calls it “the California Driver Benefits fee” and says that it “helps us fund the new benefits offered to drivers thanks to the passing of Prop 22.” 

All of this feels pretty inevitable, to be honest. After all, one could hardly expect companies that are now infamous for predatory and dishonest business practices to subsidize workers’ benefits out of their own pockets. It’s just a shame more voters didn’t reach that conclusion before clicking “Yes” on the Prop. 22 measure.

Restaurant Tech ‘Round the Web

Part of the plan President Joe Biden has issued to combat coronavirus includes providing clear, national guidelines for restaurants on how and when they can operate. Clear national guidelines would be developed around the safety of workers as well as things like restaurant capacity restrictions.

Olo partnered with customer feedback tech platform Tattle in order to improve the process of collecting restaurant guest feedback for off-premises orders. Tattle will integrate with the Olo platform to provide restaurant guests with a digital survey they can take after ordering from a restaurant.

Pathogen control tech company UV Angel has partnered with McDonald’s franchisees in Texas and Illinois to equip locations with proprietary ultraviolet light surface and air technology. UV Angel says its tech targets pathogens at the room level (as opposed to at the building level), which the company say is more effective in fighting airborne and surface-borne bacteria, viruses, and fungi.