We’re only one month away from the Good Kitchen Summit, so we’re going to be checking and listening to from a few of our audio system.
First up is Clayton Wooden, a long-time entrepreneur who has been navigating the meals robotics marketplace for the final 5 years, first because the CEO of Picnic (which debuted its robotic at SKS 2019), speaking in regards to the challenges and alternatives he sees on this market. You possibly can watch the complete interview by clicking play under or learn among the highlights within the transcript under.
Michael Wolf: I think about that loads of startups within the meals robotics house are most likely eager to get your recommendation since you ran one of many early fairly profitable meals robotics corporations with Picnic. Speak about among the conversations you’re having and perhaps among the, are there early stage entrepreneurs within the house which can be coming to you say, hey, now we have an concept.
Clayton Wooden: Completely. I began getting inbound curiosity in being an advisor as quickly as I left Picnic, a bit of over a 12 months in the past. I’ve talked to numerous corporations within the house. A lot of them are on the identical spot, which, given market circumstances, isn’t too stunning, which is that they’ve acquired an concept. They’ve most likely acquired a product or a prototype, having bother elevating their first spherical, having bother discovering product market match. And simply attempting to make that leap into sort of being a extra mature firm. It’s a tricky spot below any circumstances, however in market circumstances, the previous couple of years have made it particularly troublesome.
Michael Wolf: One of many issues about meals robotics is it’s an extended path to entering into market. It’s loads of capital. And with the enterprise capital winter that’s seemingly lasting endlessly, it looks like a tricky time for meals robotics corporations.
Clayton Wooden: It very a lot is. I do know at Picnic, we began in what I lastly confer with because the free cash period, the place you raised one spherical simply to get to the subsequent spherical, and elevating cash wasn’t actually that a lot of a query. Now it’s an enormous downside. The problem that meals robotics corporations have particularly is that because the market tightened up, it turned very conservative, and conservative traders don’t like {hardware} normally.
Meals tech is seen as a difficult class of {hardware}. So when you’re , , present me once you’re cashflow constructive, present me once you’re worthwhile. It’s very, very troublesome as a meals {hardware} firm to indicate that as a result of it’s such a brand new subject. Product market match is elusive and with the ability to say when that these monetary metrics will flip proper facet up is admittedly difficult. It’s only a actually robust time for all startups, however I believe meals robotics, meals {hardware} is very a difficult class, and has been for the final two or three years.
Michael Wolf: One of many issues about Picnic was I felt prefer it was a next-generation pizza meals robotics firm and that it was purpose-built round constructing pizzas. It wasn’t certainly one of these the place somebody acquired a general-purpose robotic arm and would simply transfer issues round inside a confined house. And also you’re nonetheless seeing these typically. What are among the when you’re giving recommendation to a meals robotics firm by way of constructing out a system and considering it by what finally could succeed available in the market, what would you inform them?
Clayton Wooden: Sure.I believe it’s a kind of indicators, you’re completely proper in regards to the arms and the massive footprints. It’s a kind of indicators of a brand new, immature market. Folks haven’t seen meals robotics, they don’t know what to consider it. We had individuals at commerce exhibits wanting on the Picnic robotic they usually’re within the pizza enterprise, they usually’re watching it make a pizza they usually’re going, ‘does it make the pizza?’ It’s actually laborious to only wrap their head round it.
I believe the problem, it’s frequent to loads of know-how corporations, however very true in meals robotics, you’ve acquired to begin with the client. What’s the client’s ache level, and what can they really use? And sadly, not uncommonly, individuals begin with ‘what can my product do?’ and ‘how can I make it do it in an actual fancy, spectacular means and how briskly can it do it or that form of factor?’
These numbers are good and also you get individuals excited, but it surely’s probably not what the client wants. And finally, the actual problem in meals robotics is integration. How will your system get built-in right into a business kitchen in order that the kitchen can proceed to function, do what it must do, and do it with out disrupting the method? And till there are new ideas which can be actually constructed round automation and people are beginning to emerge. I used to say nobody who has a kitchen has a pizza robotic sized gap of their kitchen that they’re simply ready to plug it in.
Michael Wolf: You already know, there are a few founders on the market on the smaller facet that I believe are innovating. They’re not a giant chain. So that you see like Andrew Simmons, which I believe you discuss so much with. You see Lee Kindell up right here in Seattle with Moto. And I think about there are others which can be exhibiting how one can be a smaller operator and nearly construct your new restaurant idea round using sort of off-the-shelf robotics. It’s not like a Zume, the place they raised lots of of thousands and thousands of {dollars} from Softbank and say, ‘Hey, we’re going to construct our personal robotic, do that customized factor.’ These smaller operators are taking a system like Picnic’s and saying, ‘Hey, we’re going to construct a brand new idea that’s basically centered round automation and sort of transfer ahead.’ I really feel like they’re pioneering in a way. Do you suppose that’s going to be what we’re going to see sooner or later, extra individuals pioneering ideas which can be leveraging automation as a result of they suppose that may assist them scale higher?
Clayton Wooden: I like to see that. I believe Andrew and Lee are sensible, and I’d say, , they’re sadly they’re on the far finish of the open-minded innovator scale. They’re each sort of keen to maneuver issues round and check out issues, they usually’re not simply open to innovation, however they embrace it they usually search it out. I don’t suppose that’s actually the persona that I’d use to explain most individuals within the restaurant enterprise.
When you have that sort of open -minded strategy, there’s all types of issues you could possibly do and you’ll adapt. In the event you don’t need to adapt, you say, that is the way in which I do issues. Are you able to assist me? That’s the place you run into an integration problem. However I believe what I like about what Lee is doing at Moto and what Andrew is doing with Mama Ramona’s Pizza Roboto is that they’re exhibiting the way it can work. They’re sharing actual world experiences.
Andrew is doing his entire construct -in public diary on LinkedIn, which I believe is sensible and tremendous helpful as a result of he’s sharing the wins and the losses. However it exhibits that it may well work, you’ve simply acquired to adapt. And I believe that’s loads of the product market slot in these early days is about adapting on each side. The client must be keen to adapt a bit of bit and the product corporations need to go in realizing that no matter what they might suppose, they haven’t constructed an ideal machine they usually should be keen to tweak and alter and reconfigure to make the very best match.
Michael Wolf: Okay, you’ve been on this enterprise for half a decade now, you’re advising corporations. What are you enthusiastic about by way of meals robotics? And are there areas you suppose you’d wish to see extra entrepreneurs or inventors go by way of constructing automation round meals?
Clayton Wooden: I’ve seen some within the dwelling house in addition to the restaurant house who’re beginning out with merchandise that already resolve among the challenges that we’ve seen actually block among the earlier corporations. Constructing units which can be drop-in replacements for a make line, as an illustration. Acknowledging the truth that you probably have the way in which a restaurant operates, staff are seldom simply devoted to a station standing there all day. The automation must work even when the individual is just giving intermittent consideration. You could see issues like a holding station the place when you’re making 10 salads a minute, nicely, if there’s no person there to catch the ten salads, they should be suitably caught and retained and held there.
And it must work round the way in which the workflow goes within the kitchen, which is multitasking, brief workers, and it wants to resolve actual issues. And the good factor is you’ll be able to resolve completely different issues and make it work. I’ve heard individuals say that, nicely, the automation didn’t actually save me any labor as a result of I solely had one individual working there anyway. I nonetheless want one individual working the automation, however the consistency means the cook dinner goes nicely. The pizzas cook dinner very well as a result of they’re all constant.
Meals waste is one other space the place meals waste is a big downside, particularly within the pizza class, however I believe it’s additionally an issue in different classes as nicely. In the event you can eradicate meals waste, simply meals waste alone will pay for the system. So I believe when you’re an automation firm or product developer, interested by all of the other ways you’ll be able to add worth, however it may well solely try this if it really works with that individual operator.
So that you’re going to seek out the client who’s doing one thing the way in which that your machine is designed to do it. If you can also make 200 dishes an hour, that’s sensible and that sounds actually spectacular, however what number of eating places are making 200 of the identical factor each hour? Not that many. And so it’s possible you’ll probably not have a giant market if that’s your declare to fame and that’s actually the rationale you need any person to purchase it and that’s how your economics work. If persons are making 20 an hour, is it nonetheless economical? Does it nonetheless pay for itself?
Michael Wolf: You talked about dwelling and also you’re seeing some issues which can be thrilling you. And also you don’t need to essentially title names, however dwelling has been actually robust to crack for meals robotics. And also you’re seeing some fascinating ones that broke over among the boundaries that have been difficult up to now. What are you seeing there that’s thrilling?
Clayton Wooden: Residence is hard as a result of it’s gotta be, it’s gotta be small. It’s gotta be versatile. Um, it may well’t lock you into, you’ll be able to solely do, you’ll be able to solely use it when you purchase our packet of pre -packaged meals. Um, so I’ve seen one or two gamers in there who’re, who’re fixing that, who’re providing pre -packaged meals or recipes, however you may as well customise and add your individual components, however making a fairly versatile system. So I believe that’s a class that has promise, but it surely’s particularly tough as a result of even when you’ve acquired one thing that works brilliantly, you’ve acquired the entire, it’s a shopper market, and the way do you break into shopper markets? You already know, acquired to construct a model and get everyone’s consideration. And that’s simply, that’s a world that I’m much less conversant in. And it’s a fairly daunting problem to interrupt into that shopper market.
Michael Wolf: All proper, nicely, we’ll be speaking about each the restaurant, robotic house, in addition to the buyer house on the Good Kitchen Summit. Lee Kindell shall be there. Clayton, you’re going to be there as nicely, June 4th and Fifth in Seattle. And I’m excited to see you there, man.
Clayton Wooden: Trying ahead to it.
You possibly can hear Clayton at Good Kitchen Summit on June 4-Fifth in Seattle. Get your ticket at this time!
