As summer comes to a close, that means the fall conference season is just around the corner, including the return of FSTEC: the three-day foodservice technology conference that’s taking place this year from Sept. 16-18 in Grapevine, Texas. In 2024, there has never been a more exciting (or more challenging) time to try to master the art of the ideal tech stack, or to balance hospitality with digitally enhanced speed of service.
It seems like the food tech industry is simultaneously growing and shrinking as M&A activity gobbles up some of the smaller brands, while every day, more new solutions take a stab at becoming the next big thing in the restaurant digital ecosphere.
This year, among the hubbub of news and activity in the tech space, Informa’s FSTEC conference will tackle such tough questions as “Should I partner with tech vendors or try to build my own tech stack?” “How do I keep my data safe?” and “How do I get started with voice AI?”
In other tech news this month, Microsoft announced a partnership with capacity management software solution Curbit, DoorDash launched in-app happy hour promo deals that operators can activate to woo price-conscious consumers, and more.
Tech Tracker rounds up what’s happening in the technology sector of the restaurant industry, including news from restaurants, vendors, digital platforms, and third-party delivery companies. Here’s a breakdown of what you need to know and why:
A preview of FSTEC 2024
The biggest event in restaurant technology is back. This year, one of the can’t-miss sessions at FSTEC pits restaurant operators against each other in a friendly debate over whether you should “buy” your tech stack (partner with outside vendors) or “build” it yourself, as frequently more operators are exploring. The DIY technology trend began in earnest last year with brands like Wingstop and Yum Brands making the switch to proprietary tech stack elements.
In the future, we predict that many restaurant companies will opt for a little bit of both: tech vendor partnerships will likely still dominate, but with a mix of in-house custom solutions that can solve problems off-the-shelf products cannot. This “Buy Vs. Build” conversation will take place on day one of FSTEC on Sept. 16, and will feature insights from executives at Papa Johns, Brooklyn Dumpling Shop, Dine Brands, and Potbelly. They’ll discuss the pros and cons of both options, while exploring how even emerging brands can build in-house software (like the seven-unit Jeff’s Bagel Run, which built a tech stack from scratch because they weren’t seeing bagel shop-specific solutions out there).
Beyond questions of building vs. buying a tech stack, some upcoming highlights from FSTEC this year include:
- An opening keynote from futurist Mike Walsh, who is going to talk about the very hot topic of AI and how companies should future-proof their organizations instead of feeling overwhelmed by the avalanche of AI solutions out there.
- A conversation with Little Caesars’ chief information security officer to discuss why operators should prioritize data safety and security. This topic has become a hot-button issue thanks to the high-profile security incidents from companies like Panera.
- A fireside chat with Yum Brands’ chief digital and technology officer, who will discuss how Yum is leading the way in the digital ecosystem, including the development of its proprietary POS system, Poseidon.
Curbit announces partnership with Microsoft
Curbit.ai, the foodservice technology company that specializes in capacity management solutions, announced this month a new partnership with Microsoft. The collaboration was born out of Curbit CEO Fran Dougherty’s longtime career at Microsoft, where he helped to grow the Microsoft Azure platform.
With this partnership, Microsoft will be able to provide an analytical boost to Curbit’s suite of products, offering digital infrastructure and real-time AI capabilities to enhance the software’s service analysis, real-time order progress, and kitchen performance and guest sentiments analytics.
“Integrating deeply with Microsoft’s global infrastructure and Microsoft’s enterprise footprint was the obvious next step in our evolution,” Dougherty said in a statement. “As we continue innovating and further developing our technology, our collaboration represents a critical step in realizing our vision of powering 100,000 restaurant locations by 2027.”
This is part of a recent trend in foodservice technology solutions, where more and more SaaS companies have shifted their focus to real-time analytics, which can provide operators data and suggestions in the moment, rather than through reports and dashboards after the fact.
DoorDash launches happy hour and lunchtime specials for operators
DoorDash has announced its latest feature for operators, and this one is designed to combat the soft consumer environment, especially during off-peak hours. The new products are lunch specials and happy hour promotions that restaurants can toggle on an off and customize during slower periods of the day, like lunchtime and late afternoon.
For the lunch specials, operators can select specific items to be a part of the promotion during the hours of 11 am-2 pm, and they can also schedule happy hour discounts for 2-5 pm.
“The revenue generated during these hours helps balance our labor costs while keeping our team members engaged during typically slow times of the day,” Clinton Gray III, co-founder and chief brand officer at Slim & Husky's said in a statement. “It's a great strategy for community-based businesses looking to find new customers that will lead to increased revenue week over week.”
Flybuy launches Course Correct to eliminate pickup errors
Another tech trend NRN has noticed is the surge in hyper-specific tech products that are trying to correct issues caused by omnichannel technology. Flybuy is a technology company specializing in pickup solutions that just launched Course Correct: a feature that lets customers know if and when they’re heading to the wrong location of a restaurant to pick up their order.
Course Correct uses advanced location technology and AI to know when a customer that ordered through a digital channel is heading the wrong way.
While this may seem niche, it apparently happens more often than you’d think, according to Five Guys, which has been using this technology to make their pickup experience easier and faster for customers:
“After implementing Flybuy's Course Correct at all 1,495 Five Guys locations, we've dramatically improved our pickup process and customer experience,” Steve Teller, vice president of digital strategy for Five Guys, told NRN. “By proactively identifying and redirecting customers to the correct location, we've reduced wrong location errors by 60%.”
First delivery robot powered by generative AI takes to the streets
While there are many delivery robots out there, including companies like Nuro, Kiwibot, and Refraction AI, Vayu Robotics is standing out from the crowd as the first generative AI foundation-built delivery robot that’s designed to go on the streets and not just the sidewalk.
Vayu is based in San Francisco and completed a $12.7 million seed round from Khosla Ventures last year. The technology is built upon an AI foundation model (the building blocks of generative AI: Chat-GPT is an example) and works by using low-cost passive sensors instead of high-cost software to run. It’s also able to drive on streets completely autonomously without being controlled by an off-site operator and with no pre-road-mapping necessary.
With its unique model, Vayu hopes that autonomous delivery vehicles will become more affordable for operators:
“The unique set of technologies we have developed at Vayu have allowed us to solve problems that have plagued delivery robots over the past decade, and finally create a solution that can actually be deployed at scale and enable the cheap transport of goods everywhere,” Vayu Robotics CEO, Anand Gopalan, said in a statement.
