Comments on: Is Food Unwinnable for Startups? https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/ News, trends & community for food and food tech startups. Mon, 07 Jan 2019 02:48:59 +0000 hourly 1 https://wordpress.org/?v=6.8.1 By: Lloyd Smith https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-5366 Wed, 24 May 2017 12:57:00 +0000 http://foodtechconnect.com/?p=27526#comment-5366 You may find what we are doing of interest.

http://moefarms.com/
Lloyd Wallace
MOE Farms
Knox County, Texas, USA
(940) 256-4318
sevenarcllc@gmail.com

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By: Bruno Didier https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4667 Thu, 18 Aug 2016 19:56:00 +0000 http://foodtechconnect.com/?p=27526#comment-4667 Hi Jennifer!
I’m myself in the food industry since 2012 and I first had the same thought as you have right now.
But after building a delivery technology and having talked to restaurants, I came up with MobyDish, an on-demand catering marketplace.
We’ve built this product with high standards and values, in terms of quality of the food from vendors, highly trained drivers and strong tech + amazing customer support.
We’ve been able to quickly scale a food delivery company that is already profitable without millions in funding.
We have strong relationship with our customers, and they’ve been using us since day 1!

We’re expanding from San Francisco to NYC right now and I’ll be excited to hear your thoughts about us! The unit economics for small deliveries just don’t make sense until you’ve reached an enormous volume, but for big orders, it makes tons of sense.
Although catering require way more knowledge than basic drop-off deliveries, I believe this is the way people will eat while in group and the way restaurants will survive!

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By: Food News for Seeders, Feeders & Eaters - August 18 | LETumEAT https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4666 Thu, 18 Aug 2016 17:30:15 +0000 http://foodtechconnect.com/?p=27526#comment-4666 […] Is Food Unwinnable for Start Ups? [Food + Tech Connect] – Food tech startups like Good Eggs, Farmigo and Dinner Lab have had a hard year, begging the question if technology can really make a difference in this sector. Challenges like distribution logistics and customer acquisition need to be considered, and the fact that any changes in the food industry are going to happen slowly. […]

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By: Chris S https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4663 Tue, 16 Aug 2016 18:28:00 +0000 http://foodtechconnect.com/?p=27526#comment-4663 In reply to Jennifer Goggin.

Thanks for responding Jennifer, I have enjoyed reading and thinking about the items you’ve brought up in this article and following discussion. In terms of flexibility – I think there will always be a need for human decision making/interaction. Food, at all levels of the chain, is such a tangible and personal experience. It is developing tech that combines problem solving and still values the human side. As far as justifying some costs – there need to be a few examples or studies done to show the hard value add of the tech systems actually being fully implemented. I’m just not sure how to go about producing those types of documents!

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By: Jennifer Goggin https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4662 Tue, 16 Aug 2016 15:28:00 +0000 http://foodtechconnect.com/?p=27526#comment-4662 In reply to Theresa Schumilas.

The ethics match is important for tech, operations, AND funding. I’m not sure I’ve seen an ideal funding model for sustainable food companies yet, although groups like Slow Money are certainly working on it.

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By: Jennifer Goggin https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4661 Tue, 16 Aug 2016 15:19:00 +0000 http://foodtechconnect.com/?p=27526#comment-4661 In reply to Seth Syberg.

Thanks @sethsyberg:disqus!

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By: Jennifer Goggin https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4660 Tue, 16 Aug 2016 15:17:00 +0000 http://foodtechconnect.com/?p=27526#comment-4660 In reply to Chris S.

Hi Chris, all really good questions. I don’t believe the actual cost of software is an issue at this point since there are good, cheap options out there; the cost of hiring someone to run the tech could be a perceived barrier but not a true economic one. Farmers *tend* to not value their time as they should (saving money by doing something themselves is preferable to paying for something, even if it’s more efficient in the long run and could free them up for other tasks). Another consideration is how much flexibility tech needs to offer the food companies–there’s so much more that goes into taking orders for perishable food than for simple widgets, that sometimes the current tech just can’t accommodate all the changes and options.

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By: Alex Cardona https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4659 Tue, 16 Aug 2016 02:11:00 +0000 http://foodtechconnect.com/?p=27526#comment-4659 Great article. I think there also needs to be more focus on the farmer providing them with tools, insights, data, treating them as you would a customer. I think winning Solutions in food tech will need to be multi-purpose. At 47farms we start at the farmer first. What is their business model, how can we help them? Restaurants? Consumers? Hospitals? Schools? We use geo spatial algorithms that codify requirements on both the buyer and supplier and optimize the distance thereby shortening the supply chain. We built our platform acknowledging that not every farmer / food artisan supplier is the same so we built in flexibility in our model. We have our eyes on the long term without a doubt but we also have to measure short term wins (and failures) in order to keep refining the model. MULTIPURPOSE.

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By: Theresa Schumilas https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4657 Sat, 13 Aug 2016 12:04:00 +0000 http://foodtechconnect.com/?p=27526#comment-4657 In reply to Marcus Krauss.

Enjoying this discussion – I’m an organic farmer and food hub researcher at the Laurier Centre for Sustainable Food systems in Waterloo, and have just come to the ‘tech’ side of things. I’ve been studying how food start-ups (mostly local ones here in Waterloo) have been approaching the food+tech space. Many have come and gone in the year I’ve been watching them. In interviewing these entrepreneurs I’ve found that few of them think about the ethics involved in building sustainable food systems. If the ‘tech ethics’ don’t match up with the operational ethics ‘on the ground’, then long term relationships and trust (with farmers, with suppliers, with eaters…) is not possible. Equity funding will come and go – but these businesses can’t get a foothold. So – I’ve been turning my attention to open source food and tech space – like Open Food Network (www.openfoodnetwork.org) – which seems to be a better ethics match with sustainable food systems. Thoughts on that?

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By: Hampton Creek's Latest Issue, Zico Founder Launches $42M Food Fund + More https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4653 Tue, 09 Aug 2016 21:58:26 +0000 http://foodtechconnect.com/?p=27526#comment-4653 […] 2. Is Food Unwinnable for Startups? […]

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By: mKonnekt https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4648 Sun, 07 Aug 2016 23:41:00 +0000 http://foodtechconnect.com/?p=27526#comment-4648 Jennifer, great article about the challenges facing (of the many) and one of the reasons for this is because of the fractured nature of the industry. We are basing this from a restaurant industry perspective – given the floating nature of the service staff providing a standardized customer service becomes a big hassle. At mKonnekt we are trying to solve this issue by focusing on getting more data on customers and making sure that the restaurant staff has tools to offer personalized service to their customers.

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By: Chris S https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4631 Thu, 04 Aug 2016 20:30:00 +0000 http://foodtechconnect.com/?p=27526#comment-4631 Food companies span such a wide spectrum of tech. There are wholesalers still manually receiving and hand writing invoices, while there are a multitude of available software programs that alleviate this pain. There is a reason for this – old school ways work within this system. When launching a business within this industry start-up costs are huge and profit margins are slim, especially in producing fresh fruits and vegetables. Technology will, without a doubt, be necessary to advance the food movement. However, simple questions still need to be answered like why are companies still hand writing orders? Are the cost barriers too high to purchase a software tool? Is there someone who works on the farm who has the time to learn, operate, input the data into the program? What is the cost (monetarily and hourly) associated with hiring someone who runs the “tech” side of the company, even if it is small? How does this technology help navigate regulatory issues? How does this technology allow the company to scale? What are the added costs of growing as a company? Finally – the lynch pin – can the company tangibly deliver the goods?

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By: FOHBOH https://foodtechconnect.com/2016/08/01/food-unwinnable-for-startups/#comment-4630 Thu, 04 Aug 2016 17:33:00 +0000 http://foodtechconnect.com/?p=27526#comment-4630 Good post, thanks! There should be a distinction between food tech and restaurant tech. Granted, in many cases logistics still apply and user acquisition is always a challenge for startups and running out of cash is the net hazard of this reality. Whether it’s a food startup or a food + tech startup, or a restaurant or a restaurant + tech startup, it’s a rough road, takes time, requires capital, patience. But, customers and revenue is still what makes a business a business. We advise a lot of restaurant tech startups on strategy, capital, customer acquisition and product development. We believe foodtech is absolutely winnable with the right team, vision and business model that solves a problem, brings value to the consumer or business. Find product/market fit quickly. Too many startups are also afraid to charge for their service. We advise them to get through beta as fast as possible and start charging something, anything, for your product/service. Nothing makes a CEO or an investor happier than when a customer votes YES with their wallet. Revenue is everything to a startup.

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