Another week another 75 Million of ‘Smart Money’ targeting the hearts and minds of consumers leaving restaurants looking for cash that once would have gone to them. The era of boomer restaurant CEO’s building, leading, or turning around chain restaurants is rapidly coming to an end.
Today all the attention is focused at Foodtrepreneurs. These Foodtrepreneurs are in their early 20’s and 30’s leveraging technology to simplify the process of buying, getting, and eating fresh prepared Ready-2-Eat or Heat-N-Eat fresh food.
This week again New York City-based meal-kit delivery startup Plated raising $15 million in a Series A round. There was also a big $60 million round for FoodPanda, an online-based food delivery service that operates in 40 countries. Foodservice Solutions® Grocerant Guru™ Steven Johnson stated “Todays Foodtrepreneurs are thinking big while maximizing operational efficiencies and technological advances. That is the new recipe for evolving success and attracting funding in the retail food space today.”
This week’s round of CASH is being injected into what’s becoming a very competitive food delivery space and comes just one week after Square purchased San Francisco-based food delivery startup Caviar for $90 million. That’s 165 Million in this space in two weeks. Are you taking notice?
Smart phones are driving the rapid evolution within the retail food space and it seems as if everyone is targeting the lethargic legacy chain restaurant sector hell bent on opening, running, and marketing restaurants today the same way they did 40 years ago. Yes, brand protectionism is alive in that one sector but for how long? Consumers and the industry are adopting to new avenues of distribution and customer relevant messaging.
When Scott Stanford, whose Sherpa Ventures firm led a $28 million Series B round in Munchery, told Taylor Soper “That with the amount of people eating every day, and the new demand for having items arrive at your door within minutes, there is room for many entrepreneurs coming up with new ways to get grub to your door.
Stanford added that he has “tremendous confidence” in Munchery’s business model, and predicted that there could be even more similar companies with how big the addressable food market is.” Clearly Sanford was, and is correct.
While boomer CEO’s all used the same text book to build, lead, or turn around chain restaurants today a new chapter in food retailing is being written. The youthful Foodtrepreneurs are not all the same. In fact
ten or more are coming at the food space it from a completely different angles. Each sees the opportunity differently and each seemingly addressing obvious weakness of each chain or day-part. These Foodtrepreneurs are bold, bright and right is ‘smart money’ is the judge. Outside Eye’s can help you.
For international corporate presentations, educational forums, or keynotes contact: Steve@FoodserviceSolutions.us Grocerant Guru at Tacoma, WA based Foodservice Solutions. His extensive experience as a multi-unit restaurant operator, consultant, brand / product positioning expert and public speaking will leave success clues for all. www.FoodserviceSolutions.us