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Daily news and analysis about the food tech revolution

vending machine

Daily Harvest Serves Up Free Ice Cream Through Traveling Vending Machine

During 2020, we have had our fair share of stressful and saddening news. A vending machine that dispenses free vegan ice cream while playing 90’s music is exactly the kind of thing we need to read about right now. 

Daily Harvest is a plant-based meal delivery service that offers pre-made meals such as smoothies, flatbreads, and bowls. Their most recent release, Scoops, is a vegan ice cream made from plant-based ingredients like coconut cream, fruit, black sesame, cacao, and mint, which is now available for purchase in their subscription boxes. To promote the release of Scoops, Daily Harvest recently set up their first outdoor vending machine in Newport, Rhode Island.

The vending machine is regularly sanitized and requires wearing a mask and practicing social distancing while selecting your free ice cream. “Scoops”, an original song written specifically for Daily Harvest by Boyz ll Men, plays as you choose between two flavors: Chocolate + Ooey, Gooey Midnight Fudge, and Mint + Dark, Melty Cacao Chips. The machine has a small sign that reads, “This is not a mirage” because let’s be honest, free ice cream seems too good to be true right now. 

Since the onset of the COVID-19 pandemic, consumers want to minimize human contact and interaction when purchasing food. Less hands on your food, the better. We have seen a rise in food delivery pods, robot cooks,  unmanned convenience stores, and smart vending machines. Our food systems have to adapt in the face of a pandemic, and vending machines like Daily Harvest’s could be part of this new normal we find ourselves in. 

The vending machine popped up in Newport, RI last week for two days, and is now on the move. The Daily Harvest vending machine will pop up in Domino Park in Brooklyn, NY August 21-23rd. According to the website, they will continue to add additional locations, are running an Instagram poll to determine the next site of its vending machine. 

Byte Adds Dynamic Pricing to Its Smart Vending Fridges

Byte Technology added dynamic pricing to its smart fridges this week, giving its clients the ability change prices of stocked items on the fly.

Through a combination of RFID and IoT, Byte makes smart vending refrigerators that allow shoppers to swipe their credit card, take what they want from that fridge and get charged automatically. The company licenses its technology platform to retail operations like supermarkets or restaurants, which brand the fridge to sell their packaged food (or anything really).

Because of the RFID tags and connectivity, a Byte fridge knows exactly what’s in its inventory as well as what items sold, when and to whom. With the addition of dynamic pricing, Byte fridge operators can now automatically discount items for just about any reason.

For example, if a fridge is stocked with fresh sandwiches, the operator can create a 25 percent discount on any of them set to expire. Because the fridge already knows everything about its inventory, it automatically knows which sandwiches this discount would apply to, so the operator doesn’t have to set a specific date or create a new rule each time. It could also run promotions on particular drinks, such as half-off carrot juice after 5p.m. on weekdays, or broader discounts like discounts on cobb salads every Monday.

By giving operators the ability to offer dynamic pricing, Byte hopes to reduce the amount of spoilage and food waste created through its platform. This type of dynamic pricing already exists in grocery stores through solutions like Wasteless, which algorithmically discounts food price based on factors like expiration date. And the Karma app teamed up with Electrolux to create special fridges in grocery stores that sell almost expired food for at least half off.

As I wrote about in my recent The Great Vending Reinvention: The Spoon’s Smart Vending Machine Market Report, the COVID-19 pandemic is forcing retailers to examine new, contactless ways of selling. Vending services like Byte’s offer the ability to sell products without human-to-human interaction. And though the pandemic has shut down offices, which were a main line of business for Byte’s machines, Byte Founde, Lee Mokri told me by phone this week that it is seeing increased interest from places like residential buildings.

Come to think of it though, having a smart vending machine in the lobby of an apartment building that can automatically discount a pint of ice after midnight might not be the greatest thing in the world.

The Great Vending Reinvention: The Spoon’s Smart Vending Machine Market Report

Thanks to advances in hardware, the internet of things, and food preparation, vending machines today are basically restaurants in a box. They offer high-end cuisine in minutes, require minimal setup time, and have the on-board computing smarts to manage inventory and communicate any issues that arise.

With these capabilities, it’s no wonder the vending machine category was valued at more than $30 billion in 2018, according to Grandview Research, and was anticipated to have a CAGR of 9.4 percent from 2019 through 2025.

Had this report been written even just a few months ago, the main takeaway would have been that vending machines are perfect for high-traffic areas that operate around the clock: airports, corporate offices, college dorms, and hospitals.

But we’re living in a world continuously being shaped and reshaped by the COVID-19 global pandemic. Right now, some form of shelter-in-place orders blanket most of the U.S. Global air travel volume has plummeted, so airports are not busy. Non-essential businesses are closed and people are working from home, not office buildings. And colleges may not hold in-person classes until 2021.

While on the surface, those factors suggest vending machine companies will be yet-another sector wiped out by coronavirus, there has actually never been a better time for the automated vending machine industry. The small footprint and high-end food these devices offer are perhaps more important than ever at a time when minimizing human-to-human contact in foodservice is paramount to doing business. That makes the vending machine market uniquely positioned to capitalize on a post-pandemic world.

This report will define what the automated vending machine space is, list the major players, and present the challenges and opportunities for the market going forward.

Companies profiled in this report include Alberts, API Tech/Smart Pizza, Basil Street, Blendid, Briggo, Byte Technology, Cafe X, Chowbotics, Crown Coffee, Farmer’s Fridge, Fresh Bowl, Le Bread Xpress, Macco Robotics, TrueBird, and Yo-Kai Express.

This research report is exclusive for Spoon Plus members. You can learn more about Spoon Plus here.

Piestro’s Playful Pizza Robot Gives Equity Crowdfunding a Spin

Automated vending machines were already hot coming into 2020. Companies like Briggo, Cafe X, Yo-Kai Express and Chowbotics were ushering in a new golden age of vending machines. With the COVID-19 pandemic forcing us to look at ways of reducing human-to-human contact when serving food, it looks like this golden age of automated vending is just getting started.

Throwing its hat into the ring is Piestro, a new robotic pizza making vending machine that just launched an equity crowdfunding campaign to get off the ground.

A portmanteau of pizza + maestro, Piestro is a colorful standalone automated kiosk. Inside, a robotic arm spins the dough under dispensers that pour sauce and apply cheese and other toppings. Then the pizza is run through a heater before being boxed up and popped out in 3 minutes. No word on the variety of pizzas (the video below shows pepperoni, peppers and mushrooms), but pizzas can be ordered via touchscreen on the machine or mobile app.

Piestro is actually entering a market that is already pretty competitive. Basil Street recently raised $10 million for its pizza vending machine, API Tech has more than 200 pizza machines in operation in Europe, and earlier this year Le Bread Xpress launched the Bake Xpress, which makes pizzas. Additionally, there’s Picnic, though its robots only do pizza assembly (not cooking), and PAZZI’s robot pizza maker is more of a micro restaurant than a vending machine.

Of these, Piestro seems to be most like the API Tech in that it’s not re-heating frozen pizzas, but the machine has the assembly elements of Picnic and the theatrical flair of Cafe X.

Piestro is just in a prototype phase right now, so it’s not currently available on the market. It looks like Piestro launched its equity crowdfunding campaign on StartEngine over the weekend and has gone on to raise more than $82,000 dollars. And if we are reading the terms outlined on the campaign page correctly, Piestro is aiming to raise close to $1.07 million. We’ve reached out to Piestro to find out more details.

Another thing of note about Piestro is the team behind it. Piestro CEO Massimo De Marco was a co-founder of ghost kitchen company, Kitchen United. Piestro’s COO is Kevin Morris, who is also the CFO of Miso Robotics. Buck Jordan, CEO of Miso Robotics and partner at Wavemaker Labs, which made a lead investment in Piestro, is on the Board. FWIW, Miso is also running an equity crowdfunding campaign of its own.

I’m a big believer in the vending machine space, and I do think that the global pandemic will accelerate the trend. First and foremost, the food that vending machines create is higher quality than ever, and the cuisines served will continue to diversify. Second, the small physical footprint of vending machines means that they can be placed just about anywhere for convenient food on the go. And finally the humanless aspect could carry more importance as people are more concerned about who is touching their food.

From the campaign, Piestro has a dual go-to market approach. In Phase 1 it will be making its own pizzas and selling directly to consumers. In Phase 2 it will license out the technology to existing pizza companies. Though it doesn’t provide a ton of details, Piestro says that its machines can be up and running in two weeks for a cost of $50,000.

If Piestro’s crowdfunding campaign is successful, pizza and vending machines could be a hot combination to watch out for.

API Tech Bringing Smart Pizza Vending Machines From Europe to the U.S.

We were watching the vending machine space closely before the pandemic, because of their increasing ability to create high-quality food in very small footprints. But ever since COVID-19 crashed all over the world, we are paying even closer attention to vending machines because they eliminate person-to-person contact when buying a meal.

There are a number of cool vending machines out there making great food: Yo-Kai Express serves up hot bowls of ramen, Chowbotics makes salads and grain bowls, Bake Xpress pushes out warm pastries. Now you can add to that list API Tech’s Smart Pizza machines, which, as you can probably guess, deliver hot pizza into your paws in under three minutes.

Smart Pizza makes standalone vending machine that can hold up 96 par-baked pizzas. Once a pizza is ordered either through a built-in touchscreen or on a mobile app, the pizza gets a final cook using a proprietary oven before being boxed up and dispensed.

Spoon readers might recall another pizza vending machine coming to market made by Basil Street. But unlike Basil Street, which makes the Automated Pizza Kitchen (APK), API Tech is an industrial automation company and does not make any of its own pizzas. The machine is sold to food companies, which can then stock it with whatever types of pizza they choose. The system menu can handle up to 200 different pizza recipes, with the operator determining the prices for each flavor.

Detlev Goedbloed, Business Development Manager USA at API Tech told me by phone this week that another differentiator for the Smart Pizza machine is the way it cooks. The companies proprietary heating system can change up the cook program based on the pizza. So if you have a pizza with fresh food on top (like pineapple) the oven will heat just the bottom; but for something like a plain cheese pizza, it can heat the top as well. Goedbloed also said the Smart Pizza’s oven allows the final product to have a crisp, pizzeria-like crust.

Because the Smart Pizza machine stores pizza that is not frozen, pies can only last for a couple of days in the machine before they need to be removed. Basil Street’s APKs store frozen pizzas, so they can last for a month inside the machine.

API Tech is headquartered in Nancy, France and right now has 223 Smart Pizza vending machines across Europe and the UK. Last year the company placed its first two machines in the U.S., one in California and one in Florida. API Tech sells the machines outright at a cost of $68,000 and is currently working on expanding its presence in America.

Perhaps most important right now, given the state of the world, is the fact that these machines can operate without a human (except for the restocking bit). Customers don’t even need to touch the machine to order or pay as that can be done through an accompanying app. These will be valuable attributes in a post-pandemic world, and definitely something we’ll be watching closely over the coming year.

The Food Tech Show: How Coronavirus is Accelerating Certain Food Tech Sectors

It’s a scary and confusing time, so I hope getting together with some familiar food tech friends will give you a 30 or so minute respite from the madness.

One warning in advance though: we do talk a little coronavirus, but we do look at the possible bright side for some of those sectors in the food tech space where the outbreak could accelerate adoption.

Other stories we discuss in today’s pod include:

As always, you can find The Food Tech Show on Apple Podcasts, Spotify or wherever you get your pods. You can also download it direct to your device or just click play below.

Korea’s Meatbox 365 is an Automated Meat Vending Machine

As the coronavirus continues to spread around the world, we are watching in real time as our food systems adapt. Everyone, after all, still has to eat amidst the outbreak, but enjoying a meal or shopping for groceries around hundreds of strangers in a crowded restaurant or supermarket carries more risk than it did just a few months ago.

We’ve seen robots delivering food to quarantined patients, a driverless vehicle company offering up its technology to assist with food delivery, and over the weekend, a reader sent us the following tip:

In Korea, non-commercial, unmanned fresh food stores are popular because of the coronavirus.

Along with that brief note came a link to a Korean blog post about the Meatbox 365, an automated meat vending machine service. It’s a small, real world location that houses three different vending machines. We couldn’t get a ton of details because we read a Google translation of the webpage, but it appears that two vending machines are serving a range of meats like beef, lamb, and pork in a variety of cuts. The third machine serves salads and sides. There also appears to be a bank of cold storage lockers where you can presumably safely store your purchases for pickup later.

24시간 운영하는 고기 자판기…무인 정육점 미트박스365를 사용해보니[현장포커스]

Meatbox 365 falls neatly into the Venn diagram of topics we’re following closely here at The Spoon. First, it’s another example of the golden age of vending machines, which we are starting to enter now. The Meatbox 365 is basically a 24-hour butcher shrunk down into a very small physical footprint. Not everyone needs a pork chop at 2 a.m., but it can provide a fresh meat alternative for busy people unable to make it to an actual grocery store.

Second, as noted earlier, we are watching to see how the coronavirus pandemic alters the meal journey. An automated butcher means less human-to-human contact as people shop for meat, and people can venture out of their homes in off-hours to buy protein to avoid crowds.

Of course, the touchscreens and dispensing cavities of the Meatbox 365 machines need to be scrubbed down and/or people need to wash their hands after using the machine to minimize the risk of spreading the virus.

Based on a video posted by TechCafe, Meatbox 365 has been in operation since at least October of last year. I’d love to see any stats around Meatbox 365 sales since then, just to get a sense of how people in Korea adopt buying meat from a machine. But it would also be interesting to see stats over the past few weeks as coronavirus cases have spiked in Korea, and whether the automated nature of the machines has spurred sales.

We actually have meat vending machines here in the U.S. as well. The Applestone Meat company has two meat vending machines that operate 24/7 in New York. Though those machines aren’t as high-tech, and lack the touchscreens of Meatbox.

If you’re in Korea and have bought meat from a Meatbox, drop us a line and let us know why you did so and how the experience was!

NÜTY Rolls Out Smart Chillers That Let Customers Buy Food With WhatsApp and WeChat

Ray Nathan had a problem.

The longtime technology entrepreneur and investor had spent years and a significant amount of his own capital to create a line of fresh, direct-to-consumer Indian food under the brand NÜTY, only to find traditional Indian retailers were not well equipped for the type of cold-chain continuity required for such a premium product.

One solution would be to use a fresh-food vending machine like Farmer’s Fridge or Bite Kiosk but, as it turns out, these automated cashierless food retail machines had yet to make their way to India. So Nathan did what any self-respecting food company founder who had also built his own tech company in a previous life would do: He built his own solution.

Conceived as a sister company to NÜTY Foods, Nathan decided to start NÜTY Technology to make IoT powered smart chillers which would keep his food at the right temperature until purchased by the consumer.

The chillers, which Nathan and his company had on display this month at the IoT Fair in India, give customers the ability to buy in person using NFC or through social apps. In India, that means Whatsapp, which allow consumers to buy food through the chat function.

To buy food from a NÜTY chiller with WhatsApp, the user simply opens the app and starts a conversation with NÜTY, finds a chiller near them and orders by texting the word pay. From there the chatbot sends a pay link. Once they pay, the consumer is free to pick up their food at the designated chiller.

The company is also testing their food chillers in China with WeChat as the conversational commerce platform. WeChat has become an entire commerce ecosystem in and of itself over the past few years with its mini-program platform, which NÜTY’s ordering and payment app is built upon.

The food inventory is tracked using RFID. Each chiller is outfitted with an “RFID set top” and has internal RFID sensors can track up to 30 or 40 products at a time.

Today Nathan’s chillers are in 80 locations, including across office parks, coworking spaces, cafeterias and shared living spaces, and he has plans to roll them out across India and in certain cities in China and, eventually, into the US market.

While mobile payments are taking off in every region, countries that embraced superapps like WeChat and WhatsApp for payment have moved faster than other regions. China in particular has pulled ahead of pretty much everyone else, where some estimates have mobile payments adoption above 80% of transactions.

As we’ve written here for some time on The Spoon, interest in next-generation vending machines and kiosks has been growing in recent years, with self-service fresh food kiosks being as one of the more interesting categories. In the US, players like Byte and Farmer’s Fridge have emerged as an alternative to cafeterias, local deli or the fresh food aisle at your grocery store, but in markets like India options like the NÜTY chiller could help to actually serve as a critical platform to enable the availability of high quality packaged fresh food.

Hey Robot Vending Companies, Y’all Should Team Up!

There are a lot of smart people currently working for robot vending machine companies. Building mechanisms that autonomously make lattes, mix salads and serve hot pizza isn’t easy. But after writing about startups like Briggo, Chowbotics and Bake Xpress, I really hope their marketing departments are smart enough to talk to each other because there is a big opportunity to bundle some robot food services.

For instance, it would be cool to have a Briggo Coffee Haus right next to a Bake Xpress in an airport. That way, when you order a robo-coffee, you could also grab a robo-choco-croissant. Or there should be a Yo-Kai Express next to a Chowbotics’s Sally so you could have soup and salad.

The nice thing about vending machines is that they don’t take up very much space and can carve out their own culinary niche without competing with one another. So as more vending machines come online, it could be entirely possible to have a whole automated food court offering all different kinds of cuisines tucked away in the corner of an airport terminal or the lobby of a hospital.

This means that there are plenty of opportunities for vending machine companies to mix and match promotional and marketing opportunities. Buy an Alberts smoothie, get ten percent off your Fresh Bowl salad. Order a Basil Street Pizza, and get a dollar off your Cafe X iced tea.

Obviously, there aren’t a lot of these high-end vending machines out in the world right now. Yo-Kai Express lists just 10 locations, half of which are at private corporate campuses. Cafe X has just two locations now. Alberts is only in Europe and Basil St. hasn’t even launched yet.

But that newness may actually work in these companies’ favor. Perhaps they can coordinate as they determine new installation locales. They are all going after the same types of locations anyway — airports, hospitals, corporate and college campuses. Why not team up and give those locations more robot bang for the buck?

Fresh Bowl Raises $2.1M, Plans for 50 Vending Machines Open This Year

Salad and snack vending machine company Fresh Bowl has raised a $2.1 million seed round, reports Restaurant Hospitality. The round was led by Betaworks and Ground Ventures, with Tuesday and Mana Capital also participating.

In addition to being a healthy food vending machine, Fresh Bowl’s hook is that it serves its meals in recyclable glass jars. When the company launched, it charged a $2 deposit for the jar, which could be rolled over into the next purchase upon its return.

But it looks like Fresh Bowl has changed up its model. Fast Company today wrote that instead of tacking on a deposit on top of the price of a meal, Fresh Bowl now offers a discount on the next bowl if you return the jar. With this new approach, Fresh Bowl says its seen an 85 percent return rate.

Armed with more cash, Fresh Bowl is also looking to expand to more places. The company lists six locations on its website right now, and Fresh Bowl co-founder, Zach Lawless, told Fast Company that they are looking to have a total of 50 machines in operation by the end of this year.

To quote Jack White, “I’ve said it once before but it bears repeating now.” We are entering a golden age of food vending machines. Companies like Fresh Bowl, Briggo, Chowbotics, Farmer’s Fridge, and Yo-Kai Express are all working to deliver restaurant quality meals from a teeny-tiny automated footprint. These vending machines can be squirreled away in office buildings, dormitories, factories and airports, operating twenty-four hours a day, serving up delicious meals in minutes for busy people on the go.

Hopefully more of this cohort will be able to take a page from Fresh Bowl’s fresh approach and incorporate recyclable containers into their service.

Oh My Green Acquires Byte Foods Business from Byte Technology

Oh My Green announced today that it has acquired Byte Foods, the food distribution and logistics service of Byte Technology. Terms of the deal were not disclosed.

Before we get too far, it’s important to make the distinction between Byte Foods and Byte Technology. In 2015 Byte launched its own line of smart fridges for offices that wanted to provide healthy eating options for employees but weren’t able to afford a full catering solution. As we wrote back in 2018:

To use the fridges, employees simply swipe a credit card and pick what they want. A receipt for each purchase is sent to their email address. Each food item has a disposable RFID tag on the bottom, which Byte supplies to their producers. Before and after the fridge door opens, Byte scans the tag to determine what the employee took, then charges them accordingly. Each fridge also features a screen with nutrition and dietary information as well as prices.

Since its launch, Byte Foods had grown to 500 smart fridges installed around the Bay Area. But those locations all had to be managed and stocked by Byte, and owning and operating your own mini-stores is not a super scalable business for a startup. So in 2019, Byte bifurcated into Byte Foods, which managed its own fridges, and Byte Technology, which is responsible for the underlying technology and software management platform that powers Byte’s fridges.

Instead of deploying its own fridges, Byte Technology sells the hardware and licenses out its platform to food providers like grocery stores and restaurants. These food providers can then wrap these smart fridges in their own branding to extend their sales channels to where people are — namely at work — without the cost of building an entirely new permanent physical store. Through Byte Technology’s platform, these grocery and restaurant licensees get access to all the data from their customers, as well as inventory management tools and analytics.

By selling its Foods business, Byte Technology will be able to focus its energies on the much more scalable software side of the business. Byte Technology currently operates 1,000 smart fridge stores across the U.S., and with this acquisition, OMG will become a customer of Byte Technology.

Like Byte, Oh My Green is an office catering startup based in the Bay Area. OMG offers a full suite of food related services for corporations from chef-made catering to stocking the office room with snacks. OMG has raised $20 million in seed funding and with the acquisition of Byte Foods’, OMG will be able to offer an additional, Goldilocks-like sales option for companies that want to provide more than snacks but less than full catering.

In the press announcement, OMG says that in addition to offices, the company plans to provided smart fridge storefronts to hospitals, government facilities and universities.

OMG’s acquisition is another step into the forthcoming golden age of vending machines that we are entering into. Smart fridges like Byte’s, and robots like Chowbotics’ Sally are providing new levels of fresh food to high-traffic areas 24/7.

Fresco Fridge Brings its Smart Fridges to Offices in the U.S.

The most facile way to describe Fresco Fridge is to say that they are like the Italian version of Byte Technology. That’s not entirely fair to Fresco Fridge, which has built up its own business halfway round the world and this month entered the U.S. with a new Manhattan location, but the comparison is kinda the quickest and easiest way to set the stage.

Fresco Fridge makes a smart refrigerator platform for offices and other high-traffic buildings. It’s a vending machine that uses RFID tags on the items inside so someone can open the fridge with their smartphone, grab what they want, then get automatically charged for it.

See? It sounds a lot like what Byte has been doing in the Bay Area.

Unlike Byte, which started out in the food biz but has since moved on to become more of an open platform, Fresco has never stocked the fridges with its own food. Instead, Fresco has since day one been a vehicle for selling some other vendor’s food.

One of the alluring aspects of a smart fridge like Fresco’s is that it allows offices to provide fresh food for its employees without having to take on the expense of catering meals. Companies can subsidize food in the fridge as little or as much as they want to give their workers more eating options on premises.

Fresco provides its fridges for free to a location and makes its money by charging a monthly fee and collecting a rev share with the food vendor. So if Sandwich Shop X stocks the fridge with food, Sandwich Shop X pays the fee and splits the sales. Vendors also get access to inventory management software, marketing opportunities (special offer notifications) and sales data and analytics as part of the package.

Fresco Fridge launched in September of 2018 and has raised €2 million in funding from a mix of European angel and venture investors. So far the company has 100 fridges in the field in Europe and a new one just recently installed in Manhattan. Fresco has also announced a partnership Proper Foods to sell that company’s assortment of healthy snacks and dishes. The company also has a partnership with an undisclosed commercial real estate company that has buildings across the U.S. and Europe.

Despite any similarities to its competitors, the potential market for Fresco and other smart vending services is pretty massive when you consider all of the office buildings, residential buildings, hospitals, etc. that could offer more food options on-site. As Fresco continues to expand throughout the U.S. next year, a lot more people could be saying “Ciao!” to the smart fridge.