For a long time, technology innovation in the restaurant industry was delegated only to the biggest names in foodservice, with the budgets and staff to build a robust tech stack. But now that omnichannel capabilities and a strong digital presence are vital for even the smallest emerging brands, being a mom-and-pop restaurant stuck in the analog age isn’t sustainable.
For many operators who don’t have a CDO or CIO on staff, it can be tempting to stick with just one or two technology vendors that offer a comprehensive range of tools. The latest investment for two big names in digital foodservice technology? Branding tools for mobile apps. Both DoorDash and Toast this month announced the launch of new DIY mobile app capabilities that allow operators to plug in their brand colors and logos (and in the case of DoorDash, their design needs and operational objectives) and create a first-party app spitting out, which requires little experience.
Both DoorDash and Toast are targeting their new tools at emerging operators, helping to narrow the odds between smaller and larger brands all fighting for a piece of virtual real estate on consumers’ phones.
In other news this month: Olo laid off more staff, a drive-thru automation company, Presto put itself up for sale and Serve Robots developed a robot-to-drone delivery solution.
Tech Tracker summarizes what’s happening in the technology sector of the restaurant industry, including news from restaurants, suppliers, digital platforms and third-party delivery companies. Here’s an overview of what you need to know and why:
DoorDash and Toast are both launching DIY app tools
Earlier this month, Toast announced a new set of mobile-first innovations, including a branded mobile app capability, allowing operators to launch their own customizable, white label iOS/Android apps. Previously, Toast only had this functionality available through third-party delivery integrations.
Through Toast, operators can select their brand images, colors and logos to customize the app, and choose to add push notifications and promotions. This allows operators to create a basic app without coding or other technical experience required, and is available with the Toast Digital Storefront suite.
“Our research shows that 75% of guests surveyed say they are interested in using a restaurant’s white-label app,” a Toast representative told NRN. “Guests feel invested in what a restaurant represents and the experience it offers them, both on-site and online. So we see more and more restaurants trying to improve the experience they offer before, during and after a guest visit.”
DoorDash takes these capabilities one step further and offers an a la carte solution for building mobile apps through the new DoorDash Commerce Platform. When an operator signs up for this position, DoorDash holds a series of consultation meetings with them to learn about their branding, sales goals and timelines. Operators will also have control over the overall design of the app, as well as the ability to add a customizable loyalty program. The operator then receives mockups of the app and if approved, it goes live in the iOS and Android app stores.
“DoorDash will tailor the app launch to the specific needs and preferences of each merchant,” a company spokesperson told NRN. “For example, some vendors may prefer to be actively involved in the design process, while others will rely on our expertise for most aspects of app creation. DoorDash meets sellers where they are and works closely to ensure the app meets each seller’s expectations before launch.”
The mobile app uses DoorDash’s online ordering solution and starts at the standard commission-free price of +2.9% fees, a spokesperson confirmed.
Presto’s lender is putting the automation company up for sale
Foodservice AI and automation company Presto have put themselves up for sale, the company’s lenders, led by Metropolitan Partners Group, announced late last month. Metropolitan announced a capital infusion to support Presto through the sales process, with the assistance of its sales agent, Rock Creek Advisors.
“This process will make our company a stronger and more agile organization,” Gee Lefevre, CEO of Presto, said in a statement. We are grateful for the continued support of our lenders, customers, suppliers and employees as we navigate this process. Presto aims to maintain current service levels, with no planned changes to staffing or operations.”
Presto recently improved the accuracy of its voice AI and will soon expand to 750 additional quick-service restaurants.
Olo announces second dismissal in fifteen months
Olo recently announced a layoff of 9% of its corporate workforce to cut costs as the tech company continues to scale and grow. Olo last announced a round of layoffs in June 2023, when the company made the decision to cut 11% of its total workforce.
Unlike many of its foodservice tech competitors, Olo has become profitable in recent quarters, thanks to a 27% year-over-year revenue increase in the second quarter, but CEO Noah Glass admitted the company still needed to “drive efficiencies.”
“By balancing our growth-to-cost profile and sharpening our focus, we will be even better positioned to achieve success on the journey ahead,” Glass said in a letter to employees about the latest round of layoffs.
Serve Robotics and Wing are working together on a robot-to-drone solution
Sidewalk delivery robot company Serve Robotics and on-demand drone provider Wing Aviation LLC have announced a partnership that will provide a robot-to-drone solution for last-mile delivery services, allowing delivery services to use robots when a customer is nearby, or drones when they are further away.
The algorithm is designed to be able to distinguish a robot order (within a few kilometers) or a possible drone delivery (which is longer).
“If robots are making deliveries and you get an order that’s six miles away, you’re not going to do it with a robot,” Serve CEO Ali Kashani told Nation’s Restaurant News. “Or when drones get a delivery and it’s in a place where they can’t access because there’s no real estate where they can land and get the item, you can’t use the drone. These systems are really powerful for what they do, but when you put them together they are even better.”
Because both robots and drones don’t have to deal with parking or traffic, they can be used by operators faster and more efficiently than traditional delivery services.
Thanx launches integration center
Loyalty software company Thanx has announced a new business integration center called Thanx Connex, which will allow operators to connect many of the different tools in their tech stack to quickly access data without having to use extraction processes or rely on third-party services to get each of the technical tools to speak the same language.
Thanx Connex facilitates data sharing from these engineering tools to centralized data warehouses, reducing the need for data engineers to store and parse disparate data from multiple sources.
“Integrations are essential as restaurants increasingly digitize and optimize their IT systems and operations,” Emily Rugaber, vice president of marketing at Thanx, told NRN. “As technology leaders add more niche, best-of-breed partners, the complexity of integrating these systems becomes critical. Effective integrations improve data accessibility and operational efficiency, helping restaurants make informed decisions and streamline workflows.”
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