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Daily news and analysis about the food tech revolution

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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. 

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.

Pizza: an Opportunity for Restaurant Tech Innovation

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Recently, a restaurant technology company called Slice announced a $40 million fundraise, suggesting there’s a huge opportunity when it comes to making software specifically geared towards the independent pizzeria. 

Slice’s platform, developed by founders with a long history in the pizza space, includes online ordering capabilities, a pizza rewards program, a POS system, the option to build a branded website, and the option to offer delivery, among other things. From the consumer-facing view, Slice is a marketplace of local pizzerias (e.g., not Papa John’s) from which to order and build up reward points that eventually result in free food. Slice is currently up and running in businesses across all 50 U.S. states and serves over 15,000 shops. The potential market it could serve — that is, independent pizzerias — numbers in the tens of thousands at this point in the U.S.

Why, you ask, would an independent pizzeria need a pizza-specific platform to do business?

It’s all in that word “independent.”

As Slice’s Chief Product Officer, Preethy Vaidyanatha, explained to me recently, if you want to run a pizza business (or any restaurant, really), you basically have two options: open a Domino’s (or Pizza Hut, or Papa John’s) franchise or start your own business. The latter choice allows for more culinary creativity and freedom, but comes with the added stressors of running a type of business that’s low-margin even when there’s not a pandemic shutting down restaurants left and right. 

On top of that — and this is what Slice’s technology really aims to address — technology’s march on the restaurant business is unavoidable at this point for pretty much everyone. Digital ordering is a must for businesses large and small now. And after a year of shutdowns and ever-changing restrictions on restaurants, costs have to be reeled in, and digitizing the back of house (bookkeeping, inventory management, etc.) is one way to do that.

Add to this some elements very specific to pizzerias. The menu may be simple (pizza), but it has to accommodate requests like half-and-half toppings, extra cheese, and crust types. Some businesses sell both whole pies and individual slices. Digitally speaking, these choices need to be available with just a couple clicks on a phone or computer. Meanwhile, many pizzerias still handle their own delivery, which as to be accounted for when it comes to managing operations. 

Slice handles the technical logistics of all of those situations, and there is arguably plenty of room for other restaurant tech companies to also develop tools for these things.

If you’re Domino’s, you can just throw money at the problem and open an innovation center to tackle these issues. I can promise you that your average family-owned pizza shop does not have its own innovation center. Nonetheless, it and any other independent pizzeria needs the ability to also offer the kinds of digital conveniences consumers get from the big companies, and that’s where restaurant tech companies like Slice could prove hugely valuable. 

For its part, Slice’s tech offers independent shops the same digitization, process automation, and online ordering/payment tools you would get with Domino’s or a third-party delivery service, but at a far lower cost. The company did not divulge actual numbers, but did mention that restaurants pay a flat fee per transaction to use the platform, rather than the percentage-per-transaction model used by DoorDash et al.

Pizza has always been in its own class when it comes to delivery, from the food itself to the way it handles off-premises formats like delivery. Getting its own tech stack made for pizzerias by pizzerias seems like the natural next step in the segments evolution.

 

Starbucks has teamed up with Arizona State University to open a research and innovation facility that will test initiatives that support more sustainability in Starbucks stores. The facility is called the ASU-Starbucks Center for the Future of the People and the Planet, and will open at the end of 2021. 

Toast has made updates to its Order & Pay tool, including pre-authorization that lets customers start a tab, authorize a credit card, and enable group ordering, all from their own mobile device.

Atlanta-based pay-at-the-table startup sunday recently launched its QR code solution, following a $24 million fundraise. The Atlanta, Georgia-based company wants, like many others, to make it easier for guests to get and pay their bill in the restaurant.

Slice Raises $40M to Digitize the Independent Pizzeria

Slice, a restaurant-tech platform for independent pizzerias, announced today it has raised $40 million in Series D funding. The round was led by Cross Creek with participation from existing investors including 01 Advisors, GGV Capital, KKR, and Primary Ventures. It brings Slice’s total funding to date to $165 million.

The Slice platform is a suite of tools, including online ordering, a rewards program, delivery facilitation, and a POS system, made specifically with independent pizzerias in mind. The company’s Chief Product Officer, Preethy Vaidyanathan, explained during an interview with The Spoon last week that the idea is to provide small and/or independent pizza shops and chains with the same digital advantages of a major chain like Domino’s.

Whereas most online ordering software is built to serve any type of restaurant business, Slice’s is, according to Vaidyanathan, geared towards the “specialized needs that a pizzeria has.” Menus are one simple example, since pizza shops have to accommodate for things like different crust styles, and half-and-half toppings. Via a Domino’s or Pizza Hut app, making these choices is a straightforward process that takes just a couple clicks. Slice is trying to provide the same ease of ordering for independent pizzerias.

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.

On the consumer-facing side, Slice functions as an online marketplace for pizzerias and is available for both iOS and Android. Vaidyanathan said the marketplace is available across all 50 U.S. states and that there are “well over 15,0000 shops” in the Slice network currently.

The funding news comes on the heels of Slice’s new Rewards program, which is kind of like a Starbucks app for pizzerias. Users get points for every $15 spent at a participating shop. Once they have enough points, they receive a free pie. Meanwhile, the rewards program incentivizes consumers to support local businesses, many of which are still struggling from the last year’s shutdowns and restrictions.

Along those lines, Slice said in today’s press release that it will use the new funds to expand its product line as well as invest more in its Slice Accelerate program, which invests $15,000 into select pizzerias to help them digitize their businesses.

Pizza to the Polls Crowdfunds Food for Those in Long Voting Lines

I’m glued to my social media feeds today as America goes to vote. Among all the pics of people adorned with “I voted” stickers, there were also a bunch of people I follow talking about Pizza to the Polls, a rather ingenious concept that brings together two of our favorite topics at The Spoon: food and technology.

If you haven’t heard about it, Pizza to the Polls crowdfunds pizza delivery for people stuck in very long lines waiting to vote. To send a pie, users visit https://polls.pizza/ and submit a social media link showing a packed polling place, as well as that polling place’s street address. Once the crowd is confirmed, Pizza to the Polls sends in the pies.

And quite possibly the best part? Anyone can donate to make someone else’s time voting a little bit easier/tastier. At the time of this story, Pizza to the Polls has raised more than $218,000 for the 2018 election and sent 5,329 pizzas to 308 polling places in 41 states. For comparison, during the 2016 election Pizza to the Polls raised $43,307 and delivered 2,368 pizzas to 128 polling places across 24 states.

Pizza to the Polls uses Slice to coordinate delivery and says it tries to use local pizza companies where it can. Any money leftover (sorry), will be saved for future elections and/or marches.

Look, though we may be divided as a country, and this is an emotionally fraught, heavy election, pizza is probably the one thing that can bring us all together.

The Year in Food Delivery

Despite a distinct cooling off of investment in the food delivery space this year, some big names like Uber, Google, and David Chang threw their hats in the ring.

That’s because the online food delivery market is estimated around $210 billion, with companies like FreshDirect raising $189 million in the past 12 months. It’s become such a pervasive part of our way of life that Google even added a food-delivery shortcut to Maps. And there are plenty of food-delivery crowdfunding projects to go around.

But enough with the numbers. Here are the highlights in this space over the past 12 months.

More Big Players Joined the Party

This year everyone wanted a piece of the pie. Google started to ship fresh food to customers in California through Google Express. Instacart and the Food Network launched a meal-kit delivery service, and Square acquired startup Maine Line Delivery in Philadelphia to boost Caviar. Meanwhile Facebook and Foursquare made it easier to order food from within their apps through Delivery.com.

NYC darling chef David Chang decided to blow up the entire idea of a nice restaurant by launching Ando, a restaurant that only does deliveries, and he raised the bar on delivery food everywhere by launching Maple, his own delivery service that promises a daily delicious menu.

Plus, where would the year be without a few gimmicks? Taco Bell and Whole Foods both came up with ChatBots that help you order food or suggest recipes, respectively, solely through the power of emojis. And Domino’s will now let you order pizza with one tap on your Apple Watch.

The Year of UberEats

So far I haven’t mentioned the biggest player, though: Uber. The company has had quite the year in food delivery. It shut down Instant Delivery in New York City, then launched UberEats in both the U.S. and London. Next UberEats drivers staged protests over the way the pay structure has been changed, and in November a courier filed a lawsuit against the company for missing food delivery tips. Yikes.

All of this commotion from big names and turmoil within UberEats suggest that the food delivery space is still young enough that no one has solved some of the primary problems within it. Companies are grabbing on to any stronghold they see (emojis! self-driving trucks! drones! more drones!), without regard to the longevity of the solution. Uber has faced the brunt of this fast-paced growth, but we expect to see more struggles in the coming years for other players as well.

Eat Local

This year the quest to eat healthily expanded even more into food delivery. Whole Foods hinted at a “meal solution spectrum” with some sort of delivery component in the future. Good Eggs, which many thought was defunct by this point, rose from the ashes with a $15 million round of funding to help it deliver local, quality food.

And Amazon, never one to be shown up, expanded its Amazon Fresh program to Boston, among other major cities. The difference here is that Boston customers can shop from local markets, a feature that we imagine will be implemented elsewhere if it’s successful in Beantown.

You Say Potato, I Say Share Economy

In such a young and moneyed space, different business models are flying around faster than those drones I mentioned earlier.

Some want to deliver fresh ingredients to customers to help simplify cooking at home. Juicero, for example, delivers prepackaged ingredients for green juice, made in its blender that doesn’t even require cleaning. Similarly, Raised Real wants to deliver ingredients for homemade baby food, thereby making it that much easier to make your baby’s food from scratch (sounds ambitious to me).

Speaking of raising babies and tapping new markets, Drizly raised $15 million for its liquor delivery service, among other parts of its ecommerce model. And DoorDash added alcohol to its food delivery options in California (what about the rest of us?!).

Meanwhile Foodhini calls itself a “for profit social enterprise” and delivers ethnic food made by immigrant chefs: Foodhini and the chefs each receive $2.50 from each meal, after costs.

And BringMe wants to out-Uber Uber by combining delivery with the share economy in Fairfax, VA, enlisting regular folks to deliver food as “bringers.” There are already a few models out there like this, such as Favor in Texas and Tennessee, and we expect to see more too.

Of course, while all of these business models are innovative and interesting, none of them beat the ultimate and original delivery food: pizza.