Restaurant AI & Technology Report

As we continue to see a shift in technology to take on the rising issues with Labor C3 and Sam Nazarian is leading a seed capital round of $ 20 million for Nomi, a startup that uses automation to create bowl-based meals. The investment is part of a 50/50 deal with a partnership with C3, which will test the robotic kitchens through "Iron Chef" Masaharu Morimoto's Sa'Moto restaurant concept. The space is scattered with tech startups like Piestro, Beastro, Refraction Bot delivery,

RBI's leadership may be up to something with this acquisition of Firehouse Subs for a coll 1.1. billion. Though I expect this is a play for growth as RBI continues to see a struggling performance in comparison with other QSR concepts.

McDonald's is looking to deliver a gangster move on third-party delivery with a white-label deal that could have ripple effects on an entire industry with 32K restaurants and a need for high-speed delivery to ensure quality. Door Dash and Uber may have just bagged the 800-pound gorilla without a safety cage.

Last up is Sweet Green and whether or not the 364 Million IPO will make a big difference for this brand who has struggled to get profitable for over five years. Likely that the recently hired Chris Carr as COO will have his hands full with a huge demand for performance from the public investors.

Foodable Labs Sentiment Rankings

Sweetgreen - 75.48 - Ranked #23
Firehouse Subs - 71.02 Ranked #57
Burger King - 73.02 Ranked #42
Tim Hortons - 56.99 Ranked #203
Popeye's - 62.37 Ranked #112

Today's weekly wrap dives into the trends and stats for the current labor situation brewing in foodservice with a dramatic impact on restaurants based on new consumer data analysis from Foodable Labs.

Tweetable Data Points

Foodable Labs Data:

-229K restaurants permanently closed during COVID19
-Over 1.3MM jobs lost
-62% of millennials that were in the industry have gone outside the foodservice sector for work
-Tech challenged restaurants to make up over half of the landscape in 2022
-Fastest growing sector - fast-casual up 13.4% new openings in 2021
-120+ new concepts in fast-casual in 2021
-35% of consumers are choosing to eat out less due to rising prices - the largest demographic is millennials

I also breakdown the Doordash global expansion and what this could mean to the restaurant business. Along with the evolution of ghost kitchens being launched by Inspire brands, a little late to the party but definitely, one to keep your eyes on for growth in multi-concept ghost kitchens.

Wrapping up with my latest insights on the Panera Bread IPO and why this could be a very good thing for Panera in a time where the market is looking for a big leader on the technology front.

In today’s weekly wrap episode of The Restaurant Report, host Paul Barron looks at fast food embracing technology, explores the future of automation to address labor shortages and dives into Shake Shack’s growth plans as well as Fat Brands newest acquisition.

Three Key Points:

Shake Shake’s Q3 earnings call was released and chief executive officer Randy Garutti shared details on the expansion for 2022, expecting to develop forty-five to fifty company-operated stores and adding walk up windows, drive up, and drive-thrus to about twenty-five percent of them.

The pressure of labor shortages increase as people continue to leave their jobs and autonomous drone delivery will come into play. Barron talks about Flytrex, Dominos, Nuro’s latest development and more. McDonalds and Burger King are expanding with AI in the drive-thru side but Barron says that autonomous voice ordering will take over AI.

Fat Brands announced the acquisition of Fazoli’s for one hundred and thirty million dollars, Barron asks, “Is this a buy or a bust?” Fat Brands has also acquired Twin Peaks from Garnett Station Partners for three hundred million.


Tweetable Quotes:

“Most restaurant operators right now are still dealing with old tech and old formats when it comes to managing labor.” - Paul Barron

“This is getting so dystopian, I feel like hospitality, where is it going?” - Paul Barron

“You’ve got to figure out the solution that is going to deal with both autonomy speed technology and hospitality on the same side and that I think is going to be the holy grail for the restaurant industry.” - Paul Barron

In this episode of The Barron Report, host Paul Barron speaks with Ken Chong, co-founder and chief executive officer at All Day Kitchens to explore how restaurants can grow their business through digital, delivery, and takeout. 

Three Key Points:

Chong led several Marketplace product teams at Uber before co-founding All Day Kitchens, a San Francisco-based restaurant platform that offers support by providing services to expand their reach in delivery and pick-up. 

In terms of trends, Chong says All Day Kitchen is seeing a rapid rate of innovation, adaptation, and experimentation across the spectrum. Ranging from large nationwide chains, franchises, and single unit mom and pop or small business. Chong is seeing great success with this platform for small businesses that really need this technology. 

Chong says over the next five to ten years we will see a transformation and digitization of the food, local, and hyperlocal delivery. All categories are seeing rapid changes including grocery, alcohol, convenience stores to pharmacies and we are going to see a radical shift in how people think of last mile and hyperlocal. 

Tweetable Quotes: 

“I often compare the transition we're seeing in the F and B world moving to sort of a digital first world similar to how retail and e-commerce has transitioned in the last twenty years.” - Ken Chong

“We think about a great digital first experience and ordering on the consumer side all the way down to whether it's a pickup or delivery experience on the other end.” - Ken Chong

“I think that this is one of those win-win situations where the better we can build up that suite of analytics data access and toolset, the easier it is for restaurants to build and operate on top of this distributor restaurant platform.” - Ken Chong

Industry veteran Paul Barron takes restaurant business to the next level. The restaurant industry isn’t just the business of food. It’s a cross-functional, multivariate entity that touches almost every industry — after all, everyone needs to eat. So, why not learn from the greats from all businesses? Connect the dots, read between the lines, build innovation strategies, become a thought leader, get the inside scoop on trends and open your eyes to full vision of restaurants and hospitality with The Barron Report. 

To keep listening to The Barron Report, check out the podcast on iTunes Now!

Guest: Haitham Al-Beik, CEO and Founder of Wings

In this episode of The Barron Report, host Paul Barron talks with Scott Lawton, the chief executive officer and co-founder of bartaco, to explore technology, ordering systems, and labor shortages.

Three Key Points:

Lawton talks about bartaco’s business growth as well as taking on the pandemic. He shares bartaco’s roll out of an entirely touchless dine-in operation and the creation of a more efficient labor model that allows them to compensate the staff well.

Lawton talks about the bartaco culture and how a living wage has impacted their business. Bartaco switched their operating model to pooled tips, which allowed starting pay to be twenty-three dollars an hour or more at some locations. Lawton says that they don’t need to find people with a lot of experience, just great attitudes.

In terms of technology advancements, Lawton talks about using Wisley for their customer relationship management, holding all of the customer data and onedine, their partner for the ordering process in the restaurant. Lawton says those two pieces have created a whole wealth of data.

Tweetable Quotes:

We really put all of our attention into developing these service leaders, and they are salaried employees who make a bonus, who get benefits and they are really engaged in making sure the customers are happy.” - Scott Lawton

We think we have actually elevated the experience and we are seeing that in all of the comments on social media and our shops, where they are just blown away by the service.” - Scott Lawton

Industry veteran Paul Barron takes restaurant business to the next level. The restaurant industry isn’t just the business of food. It’s a cross-functional, multivariate entity that touches almost every industry — after all, everyone needs to eat. So, why not learn from the greats from all businesses? Connect the dots, read between the lines, build innovation strategies, become a thought leader, get the inside scoop on trends and open your eyes to full vision of restaurants and hospitality with The Barron Report.

To keep listening to The Barron Report, check out the podcast on iTunes Now!

In this episode of The Barron Report, host Paul Barron meets with Nabeel Alamgir, the chief executive officer and co-founder of Lunchbox, to explore the future of eating and online ordering in the hospitality industry.

Three Key Points:

Lunchbox Technologies was launched in 2019. The company supplies multi-unit restaurants with an online ordering system and marketing engine. Before founding Lunchbox, Alamgir worked his way up from busboy to chief marketing officer at Bareburger.

For Alamgir, operators today need three things: a direct order option, half the sales coming directly to their system, and a coherent virtual and digital presence. Restaurateurs need to have the pace and mobility of start-ups to stay ahead of an ever-changing industry.

Looking ahead, operators are becoming more ambitious. Tech companies would do well to go beyond making websites and loyalty systems, and start crafting more data-driven offerings and virtual experiences that give operators the ability to build consumer attention without a storefront.

Tweetable Quotes:

“GrubHub and the restaurant industry were never aligned, and I wanted to do something about it. So Lunchbox was born. We grew 700 percent last year and we’re growing 500 percent this year. It’s been bonkers.” – Nabeel Alamgir

“We’re not trying to hire the best people. We’re trying to hire the right people for what this company needs right now.” – Nabeel Alamgir

“The problem is people give up. Restaurateurs are not tech-savvy—and it’s fine for them not to be. What is not okay is not hiring people who are.” – Nabeel Alamgir

Industry veteran Paul Barron takes restaurant business insights to the next level. The restaurant industry isn't just the business of food. It's a cross-functioning, multivariate entity that touches almost every industry — after all, everyone needs to eat. So, why not learn from the greats from all businesses? Connect the dots, read between the lines, build innovative strategies, become a thought leader, get the inside scoop on trends and open your eyes to the full vision of restaurant and hospitality with The Barron Report.

To keep listening to The Barron Report, check out the podcast on iTunes Now!

In this episode of The Barron Report, host Paul Barron meets with Steve Simoni, the chief executive officer of Bbot, to explore how technology is transforming the restaurant guest experience.

Three Key Points:

Bbot allows restaurant customers—both in-store and at home—to order food and drinks from their phone. Guests do not have to wait for a menu, download an app, swipe their card, or even sign a receipt. Restaurants install the necessary Bbot hardware and signage, and guests pay on a website using their table ID.

The Bbot platform offers restaurants a playbook for handling the marketing side of the business without breaking the bank. Small businesses tend to rely heavily on third parties without much reward. Bbot is able to support young and growing brands with a streamlined online ordering process that ensures restaurants a solid profit.

According to Simoni, the average restaurant today uses about twelve different pieces of software to run their business. The goal for operators now is to take the time to consolidate, evaluating what tech is working and what tech is superfluous.

Tweetable Quotes:

“We built our platform to be open and integrated with other companies that are helping with marketing… the digital marketing game can be expensive if you do not know what you’re doing.” – Steve Simoni

“Due to economics, third parties are forced to promote chain restaurants on their apps for more profit, which takes customers away from smaller mom and pops that third parties claim to drive orders to—so they’re not helping that much.” – Steve Simoni

“All of these tech companies wouldn’t come up if the demand wasn’t there. The question is, how many of these companies can the demand sustain?” – Steve Simoni

Industry veteran Paul Barron takes restaurant business insights to the next level. The restaurant industry isn't just the business of food. It's a cross-functioning, multivariate entity that touches almost every industry — after all, everyone needs to eat. So, why not learn from the greats from all businesses? Connect the dots, read between the lines, build innovative strategies, become a thought leader, get the inside scoop on trends and open your eyes to the full vision of restaurant and hospitality with The Barron Report.

To keep listening to The Barron Report, check out the podcast on iTunes Now!

In this episode of The Barron Report, host Paul Barron chats with Ido Levanon, the chief executive officer and director of Dragontail Systems, to explore how artificial intelligence and autonomous delivery systems are transforming the foodservice industry.

Three Key Points:

The Algo Platform and QT system use a patented algorithm and artificial intelligence to revolutionize the way restaurants operate. The QT system autonomously monitors prep and cooking processes in the kitchen, ensuring a seamless back-of-house experience.

The Algo Dispatching system sits on top of a restaurant’s own infrastructure to ensure that food always arrives hot, fresh, and a perfect match to what the customer ordered. Algo simultaneously automates kitchen flow as well as the driver dispatch process.

The goal for Dragontail is to eliminate as many manual operations as possible so as to ensure orders are delivered quickly, efficiently, and accurately. Third party systems are fully integrated into the platform.

Tweetable Quotes:

“[The QT system] is like putting a super manager in the store, making the most optimized decisions.” – Ido Levanon

“We are the only company that managed to develop a camera that can watch what’s going on with the kitchen, connect to the point of sale, recognize what belongs to what, and guide the kitchen staff to the point where they make no mistakes.” – Ido Levanon

“The ultimate [delivery] solution for any QSR where at least 20 percent of the business comes from delivery is to use a combination. Use your own drivers, but during peak times, use third-party drivers.” – Ido Levanon

Industry veteran Paul Barron takes restaurant business insights to the next level. The restaurant industry isn't just the business of food. It's a cross-functioning, multivariate entity that touches almost every industry — after all, everyone needs to eat. So, why not learn from the greats from all businesses? Connect the dots, read between the lines, build innovative strategies, become a thought leader, get the inside scoop on trends and open your eyes to the full vision of restaurant and hospitality with The Barron Report.

To keep listening to The Barron Report, check out the podcast on iTunes Now!

In this episode of The Barron Report, host Paul Barron sits down with James O'Reilly, the chief executive officer of Smokey Bones, to explore the popular barbecue chain’s latest ventures into the ghost kitchen and virtual brand space.

Three Key Points:

Smokey Bones launched its first two virtual brands in 2019. The chain has been recognized as one of the top twenty fast casual brands to watch by Fast Casual Magazine. Its virtual brand, Wing Experience, was also named QSR Magazine’s most exciting virtual brands in the United States.

Smokey Bones invested in a virtual brand strategy in order to build the profile of other—often overlooked—parts of the chain’s menu, including burgers and wings. Thanks to their success, Smokey Bones has continued building momentum for both of the brands.

To simplify its processes, Smokey Bones uses the same tech backbone for all of its brands, using one operating system and one menu management system. The chain also ensures that all of its virtual brand products are easy for its kitchens to create and execute, but still appealing to customers.

Tweetable Quotes:

“Ghost kitchens and virtual brands give us the ability to increase our points of distribution in a very efficient way, especially in trade areas where we have restaurants.” – James O'Reilly

“The key to success is to offer menu items that operationally and logistically have overlap with what you’re already good at doing.” – James O'Reilly

“One of the biggest challenges is balancing the need to differentiate these brands with the need to keep them operationally as consistent as possible… we are constantly learning and adapting as we move forward, finding ways to make these brands easier to operate while protecting the incremental business that we’ve been experiencing.” – James O'Reilly

Industry veteran Paul Barron takes restaurant business insights to the next level. The restaurant industry isn't just the business of food. It's a cross-functioning, multivariate entity that touches almost every industry — after all, everyone needs to eat. So, why not learn from the greats from all businesses? Connect the dots, read between the lines, build innovative strategies, become a thought leader, get the inside scoop on trends and open your eyes to the full vision of restaurant and hospitality with The Barron Report.

To keep listening to The Barron Report, check out the podcast on iTunes Now!