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The Spoon

Daily news and analysis about the food tech revolution

restaurant tech

Ghost Kitchen Startup Hungry House Partners With JOKR, Omsom and Others For Season Two

Hungry House, a ghost kitchen startup based in New York City, announced today it has formed a partnership with 10-minute delivery startup JOKR to distribute chef-created meals around New York City.

The company, founded by Zuul alum Kristen Barnett, announced the news today as part of the launch of its “season two,” which also includes news of new featured chefs and other partnerships. The deal is interesting in that JOKR and other ultra-fast grocery apps are where customers generally order shelf-stable packaged goods and maybe a little fresh produce. Under this new partnership, JOKR users will now be able to order fresh meals designed by chefs and cooked up in Hungry House’s facilities.

Speaking of facilities, Hungry House also announced an expansion beyond its first location in Brooklyn. Working with “nightlife experts” the No Thing Group, the company will open up a new multi-purpose location in Manhattan’s West Village. After Hungry House serves takeout and delivery out of the ghost kitchen during the day, No Thing Group will transform the new location “into a destination for craft cocktails” in the evening.

Hungry House also announced new chef partners, including salad-making Instagram star Pierce Abernathy and NYC chef Tony Ortiz. Hungry House is also partnering with Omsom, the red-hot DTC brand that sells starter kits for authentic Asian food. Hungry House chef Woldy Reyes will cook up a Tofu Sisig Bowl in the kitchen using Omsom’s sauces. According to Barnett, Omsom is just the first of what promises to be more CPG brand partnerships.

Reading Hungry House’s announcement was like reading down a checklist of restaurant tech trends in recent years and checking almost every box. Ghost kitchen that taps into the viral success of online culinary influencers and emerging CPG brands? Check. Partnering with ultra-fast grocery delivery unicorn? Check. Rethinking how to use kitchen and restaurant spaces to monetize in new ways? Check. All Hungry House needed to do was add a kitchen robot to cook up meals and they could have covered nearly every square on the restaurant tech bingo card.

It looks like we’ll have to wait for that in season 3.

It Started as a Meme. Now friesDAO Is On Track to Buy a Restaurant After Raising Over $4M Selling NFTs

When Bill Lee and Brett Beller started talking about the idea of using a DAO and NFTs to buy a McDonald’s, they were mostly joking around.

“There was always this joke since the beginning of crypto where if you just traded very poorly, or if you lost a lot of money, you could always work at McDonald’s,” said Lee, an advisor to friesDAO, in a recent interview with The Spoon. “And we just thought it would be hilarious if we got together and said let’s try and buy McDonald’s as a DAO so we can guarantee ourselves a future job.”

The two continued talking and became intrigued enough by the idea to start a Discord server, tell a few folks, and see what happens. Within a few days, a couple thousand had joined the Discord, and it became clear that what started as a meme was now something many were taking very seriously.

“As people started joining, we realized that the pressure is on now,” said Lee. “People are actually wanting to do this for real.”

Different members of the server offered to pitch in, and before long, they had assembled a crew to make it happen. One person started a website. Another registered a domain. Someone put together the documentation. And just like that, a Discord server that had launched after Christmas was a DAO with momentum and real money: As of this week, friesDAO has over $4 million in a treasury.

In the short time the project has been together, Lee and the rest of the team have given lots of thought to how it might work. For token holders, Lee said that while they will have a say in the oversight and direction of the restaurant and get access to real-world benefits like free food, what they won’t get is any ownership equity in the restaurant. That would essentially categorize the effort as equity-based crowdfunding and subject it to much stricter regulatory oversight.

As for the purchase structure and ongoing oversight of the business, the group’s considered a number of ways to do this. While one idea is an outright purchase of an existing restaurant through a contracted third party, another possibility they’re exploring is structuring the deal as a loan to an existing franchise operator to buy another restaurant. This would allow the DAO to rely on the operator’s expertise in running a restaurant, preserve capital, and scale to more cities, all while negotiating real-world benefits for token holders into the terms of the deal like coupons for free food.

With (as of today) over $4.3 million in the treasury, the DAO already has enough to buy a restaurant, but the question is what kind? Lee said the group has priced out everything from a Subway to different nationally recognized burger franchises, but they will likely go after a smaller franchise first, essentially giving them a “practice run” before scooping up a bigger franchise like a McDonald’s.

According to the group’s roadmap, that first purchase should take place around June of this year.

You can listen to my full conversation with Bill Lee of friesDAO below, on Apple Podcasts, or wherever you get your podcasts.

If you missed SimulATE, The Spoon’s food Web3 summit last week where we talked with others working on restaurant NFTs (including BurgerDAO and Flyfish Group), you can watch all the sessions here with a subscription to Spoon Plus. (Also, make sure to not miss SimulATE II, coming in May).

Nextbite’s Alex Canter Shares Insight on Virtual Kitchen Trends in 2022

This week I spoke with Alex Canter, the CEO and a co-founder of virtual restaurant company Nextbite, to hear his perspective on what 2022 holds for virtual kitchens and restaurants.

Nextbite, based in Denver, Colorado, uses a host kitchen model where it licenses a portfolio of delivery-only restaurant brands to restaurants with excess kitchen capacity. Restaurant partners can fulfill orders under these virtual brands to augment their restaurant’s dine-in and off-premise revenue. By taking on an additional restaurant brand, a restaurant can take advantage of their slowest hours, or even when they might not be open (such as the early morning or late night).

According to Canter, while many restaurants are slowly making their way back from the challenges of COVID-19, most are still not operating at full capacity. “Out of all the restaurants in the U.S., the only restaurant I can say confidently is operating at its full potential is In-and-Out,” said Canter. “They have a line out the door from the moment they open to the moment that they close.”

But this could all change in 2022, in part to new opportunities created by virtual brands. In 2022, “restaurants are really starting to understand their potential,” said Canter. “If you think about the kitchen as a manufacturing facility for food, I would say the average kitchen is probably operating at 30% output of what it could what it can do at peak.” After seeing the spike in virtual kitchens and delivery-only brands, restaurant establishments realize that they can cash in on this too. By streamlining online ordering and offering multiple menus and concepts, restaurants can reach new customers and different demographics.

In total, Nextbite has 17 brands that Canter said have been carefully created to consider emerging dining trends both inside and outside the U.S. People’s tastes and cravings change quickly, and can be easily influenced by social platforms like Tik Tok.

So what food categories and concepts will be successful in the virtual kitchen space in 2022? According to Canter, Pizza and Chinese food – the original delivery food categories – remain very popular. He also said breakfast foods for delivery are on the rise as illustrated by Nextbite’s survey which showed that forty-five percent of consumers ranked breakfast sandwiches as one of their favorite breakfast items to order. Nextbite’s celebrity taco concept, George Lopez Taco, does really well in suburban areas where it can be difficult to find an authentic street taco.

Wiz Khalifa and Nextbite’s restaurant concept, “Hot Box”

According to Canter, Nextbite works with celebrities like Wiz Khalifa and George Lopez because a small independent restaurant would never be able to connect with a high-profile celebrity. By using one of Nextbite’s celebrity-driven brands, they can tap into a celebrity brand’s following and demand.

Finally, Canter says food preferences vary depending on where you sell and who the consumer is.

Food preference and demand “change a lot when you go from major cities to the suburbs to college campuses. Depending on the demographic, some of our brands absolutely crush it on college campus markets and some do just okay in the suburbs. There’s a lot of variety happening, but I think people’s tastes are changing so faster than ever and we’re keeping up with that by constantly innovating and launching new concepts that are meeting that demand.”

Five Restaurant Tech Predictions for 2022

It’s food tech prediction week at The Spoon!

Each day we’ll publish five predictions for a specific area of the food tech universe, starting with restaurant tech.

The Ghost Kitchen Market Will See Growth in Hosted Models, Consolidation in Some Other Areas

The ghost kitchen and virtual restaurant markets were white-hot in 2021, with lots of venture funding pouring into a range of different concepts. However, one of the growing realizations about the ghost kitchen market is that while many of the offerings have had tech platform valuation multiples, a good number of them are facilities-based concepts that have cost economics closer to that of real estate business.

Because of this, I expect much of the action in 2022 will be in host kitchen concepts that leverage existing restaurant brands or create wholly new ones powered by social communities. The launch of TikTok Kitchen, powered by Virtual Dining Concepts’ and their host kitchen model, is one I’ll be watching closely to see if they can replicate the success they have with MrBeast Burger.

Finally, we can also expect to see some prominent players either exit or downscale their ambitions. Reef just announced they were closing one-third of their kitchens, likely in part due to the fallout from company’s continued health department certification problems. I expect we will see more of this in 2022.

Restaurants Will Deploy More AI, Automation & Cloud-Powered Labor to Offset Labor Challenges

Like many other restaurant chains, Checkers has struggled in recent years to find enough workers to cover the various shifts. Going forward, they won’t have to worry about that when it comes to manning the drive-thru as the company rolls out AI-powered voice bots to 267 of their restaurants.

This is only one example of how we’ll see restaurants embrace more technology to deal with what has become a permanent labor shortage in the restaurant space. Of course, automation and robotics will also be a part of the equation, but I think we’ll also see more restaurants find help through remote labor through platforms like Bite Ninja.

Restaurant Operators Will Jump Into Membership NFTs

Last week, we saw Gary Vaynerchuk and his team raise $14 million with the auction of membership tokens for their NFT restaurant set to open in the first half of 2023. With this success of Flyfish – and the rapidly rising prices of the the token in post-drop trading – I predict we’ll see lots of others try to use a similar template. Of course, many will fail, but I can see how NFTs could become a new way to finance restaurants in lieu of traditional financing for chefs with large followings.

Rethinking of Restaurant Concepts To Serve Off-Premise Driven Demand

The idea behind PizzaHQ is fairly simple: Utilize centralized kitchens powered by automation to feed a market where the vast majority of customers never expect to come into your restaurant. As off-premise continues to grow and real estate prices continue to rise, we can expect more new restaurant concepts that embrace different elements of dark kitchens, automation, contactless pickup, and more.

Digitizing of the Back of House

Restaurant kitchen operations can be messy and low-tech, but that is beginning to change as new digital platforms are enabling operators to better optimize their business. A number of startups are combining IoT, AI and software to bring about greater efficiencies in all aspects of a restaurant’s operations, enabling them to create the type of just-in-time models for food production that has existed in traditional manufacturing and other industries for decades.

Companies like Powerhouse Dynamics and their IoT-powered resource monitoring have been at it for a while, and now companies like Perfect Company are doing real-time monitoring of a kitchen to optimize labor allocation, ingredient portion sizing and other aspects of a kitchen’s operations. Other companies like Orbisk are employing machine vision to better help restaurants monitor and reduce food waste, and Miso Robotics and Hyphen are creating providing software and automation to help employees become more efficient.

Bonus Prediction: Data-Powered Personalization

As more customers engage with restaurants through apps, QR codes, and other digital formats, restaurants better understand who their customers are and what they like. While we may be a few years away from the age of truly personalized menus, I expect we’ll see increased restaurants harness all of the data they are gathering from restaurants to create better incentive programs to ensure better customer return rates and satisfaction.

Make sure to tune in tomorrow to hear our five predictions on food robotics for 2022.

Where to See Food Tech on the Show Floor @ CES 2022: Day 1

While CES 2022 will be smaller this year as the show returns to in-person after hosting an all-virtual show in 2021, we’re excited to see food tech as an official category on the show floor. The Spoon team will be in the Sands Expo in Booth 53752 talking to leaders from startups to funders and execs across agtech, robotics, future food and kitchen tech.

We’ll have videos and reports as the show goes on. To start, here’s a quick list of booths where you’ll see food tech and smart kitchen innovations and the companies behind them:

  • Bear Robotics — Booth #53755 — Bear Robotics is utilizing AI and autonomous robot technology, deploying bots to take care of everything from drink and food serving to bussing. Bear Robotics works with top chefs and restaurants, providing front of house labor support.
  • MycoTechnology — Booth #53753 — MycoTechnology harnesses the metabolic engine of mushrooms, known as mycelium, using natural fermentation to create novel ingredients that solve the food industry’s biggest challenges. (Stay tuned for a story on their consumer facing brand launching at CES.)
  • Yo-Kai Express — Booth #53758 — Yo-Kai debuted as a robotic ramen vending machine and announced a 2021 expansion into other autonomous food and cooking devices at the Smart Kitchen Summit Japan.
  • Edamam — Booth #53860 — Edamam structures and organizes food and nutrition data and sells it as a subscription to businesses in the food, health, and wellness sectors. They have worked with food and retail giants include Nestle, Amazon, and The Food Network and according to the company have close to 100,000 developers using Edamam’s APIs.
  • Northfork — Booth #53959 — Northfork is a Swedish-based startup that enables shoppable recipes online, bridging the world of digital recipes and food retail.
  • Apex / “OrderHQ” Smart Food Locker — Booth #53958 — Apex Order Pickup Solutions is the creator of the OrderHQ smart food locker, a secure, contactless solution for food pickup and delivery services. The lockers combine front and back of house technology, including hot and cold storage as well as integration with fully automated order fulfilment.
  • Uvera — Booth #54058 — Uvera is a Saudi cleantech startup that wants to reduce food waste with a device that claims to increase the shelf-life of fresh food up to “97% on average within only 30 seconds of using the device, without any chemicals.”
  • Yangyoo / Armored Fresh — Booth #53761 — Yangyoo is a Korea-based food tech company launching Korea’s first vegan cheese alternative first developed by its US subsidiary, Armored Fresh. The future food brand uses a similar fermenting process that produces natural cheese on plant-based protein milk.
  • Endless West — Booth #54061 — Endless West is a beverage technology startup founded by biotechnologists using science to create a blend of wines and spirits; its first product – Glyph – is the first molecular-made whiskey, created without aging or barreling.

(Shared) Booth #51830

  • Picnic — Robotic pizza machine designed for back of house operations in restaurants; they first launched onto the scene at CES 2020 and started filling orders in the middle of 2021.
  • iUNU — iUNU (you knew) is a Seattle agtech firm creating an AI-based platform for greenhouses and vertical farms that assists indoor growers with yields, farming waste and overall operations.
  • Minnow was the winner of the 2020 Smart Kitchen Summit Startup Showcase for their contactless food delivery solution called the Minnow Pickup Pod. An IoT-enabled locker for businesses and multifamily properties, Minnow streamlines food delivery on site.

We’ll add more companies to the list as we cover news and discover additional companies! Follow us at @TheSpoonTech on Twitter and LinkedIn as well as hashtags #CES2022 and #CESFoodTech for social updates.

Podcast: Talking Ghost Kitchens, Food Robots & Metaverse With Bbot’s Steve Simoni

Welcome to our new podcast, The Restaurant Tech Variety Hour.

Ok, so it’s really just the same old Spoon podcast. But for now, we’ll change the name because this week we’re all about restaurant tech. I’m joined by Bbot CEO Steve Simoni to catch up on everything that’s going on in the restaurant technology universe, from delivery & digitization, to ghost kitchens, virtual restaurants, food robots, and even the metaverse!

As always, you can find The Spoon podcast in Apple podcasts, Spotify or wherever you listen to podcasts, or you can just click play below.

The Restaurant Tech Summit Sessions

Below is a list of the sessions featured at the Restaurant Tech Summit. 

Subscribers to Spoon Plus can access all of these sessions. If you’d like to learn more about Spoon Plus, you can do so here. 

  • The Analyst Outlook for Restaurant Tech Brita Rosenheim (Culterra), Michael Wolf, Michael Schaefer (Euromonitor)
  • Building a Post-Pandemic Restaurant Michael Schatzberg (Branded Strategic); Trish Paterson (Copper Branch); Josh Phillips (Espita)
  • Dissecting Restaurant Delivery Tech Ava Ghaiumy (Delivery Hero); Geoff Alexander (Wow Bao), Marty Hahnfeld (Olo); Jenn Marston
  • Breaking Free: Going DTC & Network Free Krystle Mobayeni (Bentobox); Ben Leventhal (Resy, Eater); Ashley Daigneault
  • Breaking Down the Ghost Kitchen Tech Stack Jessi Moss (Kitchen United), Corey Manicone (Zuul); Warren Tseng (Just Kitchen); Jenn Marston
  • Automate: The Restaurant Robot Revolution Alex Barseghian (RoboEatz); Carlos Gazitua (Sergios); Ali Kashani (Serve Robotics); Chris Albrecht
  • A Conversation With Dave Arnold Dave Arnold (Cooking Issues; Booker & Dax); Michael Wolf
  • The Virtual Brand Explosion Alex Canter (Ordermark/NextBite); Robert Earl (Virtual Dining Concepts); Andy Wiederhorn (Fat Brands); Kristen Hawley (Moderator)
  • Recipe For Interoperability: Building Towards Open APIs in Restaurant Tech Angela Diffly (Restaurant Technology Network); Robert Peterson (Oracle Food and Bev); Christopher Sebes; Skip Kimpel (4 Rivers Smokehouse)
  • The Data-Driven Restaurant Adam Brotman (Brightloom); Allison Page (Sevenrooms); Scott Lawton (BarTaco); Michael Wolf (The Spoon)
  • Tech Strategies for Workforce & Staffing Challenges Will Clem (Bite Ninja); Paige Newcombe (Fourth); Jenn Marston
  • The Future of Restaurant POS “Jordan Thaeler (Reforming Retail), Bryan Solar (Square), Matt Niehaus
    (Slice); Amir Hudda (Qu)”
  • Tech-enabled Training for the kitchens Michael Wallace; Mike Bell (Miso Robotics); Michael Wolf

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.  

When You Think About Food Robots, Consider the Remote Mining Facility

Whenever I talk with a food robot company, particularly a startup building an automated kiosk or vending machine, they always list the same target markets. Those include airports, universities, hospitals, military bases, and basically any location where there are a lot of people coming through at all hours of the day. So my ears perked up when Alex Barseghian, Founder of RoboEatz, said his company was looking to set up its robot in the middle of nowhere.

Specifically, Barseghian mentioned setting up his company’s robot in a “remote mining facility” during the automation panel I moderated at our Restaurant Tech virtual summit yesterday. Barseghian didn’t provide specifics, but it’s not hard to imagine what a “remote mining facility” might look like, and why a robot might be useful there.

RoboEatz makes a 200 sq ft. self-contained robotic kiosk that stores 110 ingredients and uses an articulating arm to assemble a variety of both hot and cold meals. Aside from someone to re-stock ingredients and handle the occasional maintenance, the machine does everything on its own.

This autonomy, and the robot’s ability to make a meal every 30 seconds, makes it perfect for high-traffic places like airports. Busy people on the go can get a hot, restaurant-quality meal served up any time of day or night. But the autonomy also makes it perfect for places where there aren’t a lot of people and not a lot of access. Rather than sending a cook and setting up a kitchen in a remote area, which can be expensive, a robot can take care of that work. Just set the kiosk up once and regularly top off the ingredients, the robot will take care of the rest.

No only do meal-making robots like those RoboEatz and Karakuri and YPC Technologies operate independently, they can serve food across day parts (yogurt in the morning, pasta at night) and around the clock, so they can feed people working odd hour shifts. Additionally, robots can offer a variety of menu options, rather than a cook making one meal for everyone at a facility. People in the remote situation could order the meal they want and get it in minutes.

The broader point to consider is that while remote areas may not be as top of mind or even immediately as lucrative as other high-traffic locales, food robots installed in these locations could have a much bigger impact for the people who live there.

Q&A: The Future of Restaurant Delivery Bots, According to Serve Robotics’ Ali Kashani

If Serve Robotics CEO Ali Kashani has his way, more restaurants in the near-term future will offload the last mile of their deliveries not to human couriers but to wheeled rover bots that can autonomously traverse the streets en route to hand over your food.

Serve started life as a part of Postmates, eventually spinning out into its own company when the latter was bought by Uber. The wheeled Serve bots are all-electric, autonomous sidewalk rovers that require minimal human supervision to deliver burritos, sandwiches, and other food items to customers. They’re also, according to Kashani, way better for the planet and the restaurant industry.

Ahead of our upcoming upcoming Restaurant Tech Summit on August 17 (that’s tomorrow!), we caught up briefly with Kashani to get his thoughts on how robots help the restaurant biz and what role they’ll play in the future. Read our full Q&A with her below, and if you haven’t already, grab a ticket to the virtual show here.

This Q&A has been lightly edited for clarity.

The Spoon: What problem does Serve Robotics solve for restaurants/the restaurant industry?

Ali Kashani: Moving a two-pound burrito in a two-ton car doesn’t make a lot of sense. Yet it’s what we do 10 to 20 million times a day in the United States alone. It’s resulting in carbon emissions, traffic congestion, and accidents. Beyond that, it’s also expensive. Restaurants are paying 20-30% of their revenue to fulfill their customers’ delivery demands. 

Serve Robotics is creating a fleet of all-electric, autonomous sidewalk robots that require minimal human supervision. They don’t cause congested roads or emit CO2. They also don’t cause safety risks — it takes 3,000 sidewalk robots to have the same kinetic energy of a single street car. And finally, they make delivery affordable for restaurants and local businesses by significantly reducing the underlying costs. This is a win-win-win, for restaurants, for customers, and for cities. 

Starting with sidewalks, autonomous deliveries will reduce the cost burden that’s carried by restaurants today, while enabling more customers to shop locally — whether it’s from a nearby restaurant, a convenience store, or a local mall. And cities win too. If we take 5% of restaurant deliveries off the road in five years, which is our goal, we’d be removing 80,000 vehicles off the roads in the U.S., which translates to over 1 billion fewer miles traveled by cars.

By the way, robotic delivery will also be better for employment, as it helps local SMBs, the backbone of our economy, be better positioned to sell to local customers and compete effectively against larger e-commerce players. 

What is the biggest change in terms of the restaurant industry’s approach towards technology as a result of the pandemic?

Some impact was very visible to everyone, such as the adoption of digital menus almost overnight. Some other changes were uniquely visible to us. For example, robotic delivery as a whole was validated as a necessary tool, a part of city infrastructure, rather than a science project. Before the pandemic passersby would often wonder what a delivery robot was doing, but after the pandemic, everyone immediately recognized what they were seeing was a contactless delivery.

The impact of the pandemic has continued. Driver shortages have increased the importance of having several available delivery modes, creating significant inbound interest for us.

3. Where will we see the most deployments of delivery bots in the near-term future (e.g., major cities, campuses, etc.)?

We know from having access to food delivery data on major platforms that over half of all restaurant deliveries can be addressed on the sidewalk. Closed environments like campuses are a great place too. We decided to focus on cities instead because on campus basket sizes are smaller, so it’s a lower-margin space, and the demand is more peaky and seasonal. So all and all, the steady higher-value demand of cities made them a more interesting market.

Granted, cities are a harder problem to solve. We had to invest significantly in developing the right vehicle capable of navigating city sidewalks. But that’s a worthwhile investment that serves as a competitive barrier. With years and millions of dollars invested, we now have the most suitable robot for sidewalk delivery, with the largest cargo capacity, longest mileage range and battery life, and most capable drivetrain for handling the roughness of city sidewalks.

4. What are you most excited about when it comes to the impact of restaurant technology?

We’re excited by the experiences restaurants can potentially offer customers when delivery robots become a part of everyday life. There’s so much waste in how we deliver today — not just the car emissions mentioned earlier, but also in the packaging. Delivery is also not yet on-par with the experience of dining at the restaurant. 

Now imagine if the cost of last mile logistics was so low, that restaurants could send food in fine china and silverware. Similar to room service at a hotel, the robot would wait to return the dishes at the end of the meal. We could create new experiences that are similar or even better than dining in a restaurant, and do so at less cost and with less waste.

5. What do you think the restaurant industry will look like in five years?

Our goal is to take at least 5% of restaurant deliveries off the road, and bring down the cost of delivery overall. The impact this can have on our cities is enormous. From congestion and emissions, to the increase in customer adoption of local delivery, to the increase in employment and commerce opportunities.

Think about the kind of impact Ford had when they introduced the first car. Our cities look different today because of it. This would take longer than five years, but new forms of mobility offered by Serve and other companies in this space have similar potential to reshape our cities into more liveable and green places.

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.