CXO Outlook – August 2021 – India Edition – Food and Technology by Connecta Innovation

FOOD & TECH SPECIAL

INDIA EDITION

INSIGHTS. IDEAS. INSPIRATIONS

TRENDS DEFINING THE FOOD INDUSTRY POST-COVID

FINDING THE SILVER LINING WITH RISE OF CLOUD KITCHENS AMIDST COVID-19

WHAT FOOD-TECH LOOKS LIKE IN A POST-COVID WORLD

FOOD

TECH TRENDS, CHALLENGES, AND OPPORTUNITIES

AUGUST 2021

CXO OUTLOOK August 2021

August 2021

Vol - 2 Issue - 7

Food & Tech special (Indian Edition) Head of Advisory Board Dr. Varughese K.John, PhD

Managing Editor Sarath Shyam

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LETTER FROM THE EDITOR

Tech in Food:

The Real Hunger Savior

echnology’s influence on the food industry has been tremendously growing over the years. A recent analysis by Emergen Research has projected the global food tech market to reach a value of USD 342.52B by 2027. According to their report, revenue from the market in the Asia Pacific is expected to expand at a rapid rate during the forecast period, as there is an increasing purchasing power and changing lifestyle of consumers in countries in the region, which has boosted the adoption of online food and grocery purchase and delivery options. For instance, from 2011 to 2018, USD 10.8B have been invested in the Indian food tech economy, compared to USD 688 M in France. In 2017 alone, Indian food tech startups got an investment of USD 4.8B. Major players like Swiggy, Zomato, BigBasket, Jubilant Foods, Freshmenu, and Licious have seen considerable growth in their userbase, which has inspired many more to explore this market. Rapid digitization and a consistently growing consumption multiplied the reach of food tech aggregators between 2017-2019 by six times, according to a report by Google and Boston Consulting Group (BCG). However, the beginning of the pandemic was

not so good for the food delivery companies. The market experienced a setback, as the frequency of online food ordering declined initially due to multiple reasons such as consumers’ concern about their health and the fall in the availability of delivery agents. The extension of nationwide lockdown was a blessing in disguise for this industry, as more and more people shifted from conventional retail markets to online food deliveries, which created newer groups of customers and higher profits. Now, food tech has emerged as one of the fasted growing industries in India, and it is redefining the way we consume eat. In this special issue, we have covered opinions, insights and ideas of experts, leaders, and foodies on the topic, Food and Tech. This is our effort to identify trends, challenges and opportunities in the food tech industry that our readers are keen to know more about. Enjoy Reading.

Sarath Shyam

CXO OUTLOOK August 2021

Dr. Kuldeep Nagi, Ph.D, MBA, BSc.

Program Director of Ph.D, Recipient of Fulbright Fellowship Award & Dan Evans Award for Excellence and Writer columnist.

Mr. Amulya Sah, PGD PM & IR, PG Diploma in PM&IR (XISS Ranchi)

Chief Human Resources Officer, Former Head HR group Samsung R&D Institute India,Transformative HR Leader, Change agent, Digitization facilitator, Engagement architect, Trainer and Diversity champion.

Dr. Varughese K.John, PhD, MBA, MPhil, MCom, LLB. Former Program Director, MS in Management Program, GSATM - AU

Dr. Ajay Shukla, Ph.D, MBA, BE. Co-founder and Chief Strategy Officer at Higher Education UAE

Mamta Thakur Former CEO (ASEAN), Arc Skills

Mr. Sreedhar Bevara, MBA, B.Com Former Senior General Manager: Panasonic Middle East & Africa, Thought Leader, Speaker & Author of ‘Moment of Signal’ (Amazon’s International Bestseller)

CXO OUTLOOK January 2021

EXPERT'S OPINION

Walking the Way to Expand with Technology

Vimal Daga, Founder of Linux World (P) Ltd, Arth School of Technology, IIEC (Indian Innovation and Entrepreneur Community)

36 18

Rise in Technology in Indian Organic Food Industry

Subrata Dutta, Group Managing Director, Organic India

What Trends will the Indian Food Tech Sector see in 2022?

Rohit Mhatre, Co-Founder, Lokal Kitchen

Next Gen AI – Personalised Food Intelligence

Akshaye Jalan, Founder, Plan My Food

Why has the Demand for Food Processing Equipment Increased Significantly in Developing Economies?

Pankaj Singh, General Manager- Business Development, Kanchan Metals

Innovations in the Food Tech Industry

Sanjay Jain, Director, Elanpro

Raghav Gupta, Managing Director & Founder, Oateo Oats Current Trends in the Processed Food Industry

Dinesh Gupta, Director, Bry-Air Finding the Silver Lining with Rise of Cloud Kitchens Amidst Covid-19

104

Akash Shah, Co-founder & CTO, YumzyX Cold Chain Logistics Solutions & Supply Chain Strategies for Fresh Food Deliveries in India

104

Rajat Gupta, Founder & CEO, TESSOL

IN MY VIEW Trends Defining the Food Industry Post-COVID

Bharti Sanghi, Founder, Life-Home Alone Brand

88 IN MY VIEW

CONTENTS

What Food-Tech Looks Like in a Post-Covid World

LEADER'S INSIGHTS

Technology is the Key that can Unlock the Vast Potential of India’s SmallHolder Farmers

Dr. Pablo Erat, Deputy CEO & Suniti Gupta, MD & CEO, InnoterraTech

Evolution of Cloud Kitchens

Ankush Mantoo & Abhishek Bansal, Co-Founders, KitchenXS

How is Technology Helping Restaurants to Own Their Data & Serve Customers Better?

Rajesh Subramanian, Founder, Ghoshak

40 CXO OUTLOOK August 2021

Impact of Food Delivery Business on the Restaurant Industry

Dheeraj Gupta, Managing Director, Jumboking

From Dining Out to Dining In, and Now Dining on the Cloud: The Indian Customer Transforms

Karan Singla, VP & Head of Operations, India BU, Rebel Foods

100

Why has the Demand for Food Processing Equipment Increased Significantly in Developing Economies?

Kumar Setu, Co-founder & CCO, Sprink.Online

100

CONTENTS

CXO OUTLOOK August 2021

FOODIE’S IDEAS

How is Technology Shaping the Future of Food?

Satyajit Hange, Co-Founding Farmer, Two Brothers Organic Farms

Tech Innovations in Cloud Kitchen

Madhav Kasturia, Founder & CEO, ZFW

How has the pandemic promoted new technologies in the FoodTech Industry?

32 64

Vivek Kapoor, Co- Founder, Dineout

How Technology is Helping Small Food Businesses Get off The Ground

Pooja Dhingra, CEO, Le 15 Patisserie

Are Cloud Kitchen's the Definitive Future?

Chaitanya Manas, Founder, Os'Yummly

The Rise of the Food-Tech Industry in 2021

Harsh Shodhan, CEO & Co-Founder, H & J Food Concepts

CONTENTS

IN MY VIEW

TRENDS DEFINING THE

FOOD INDUSTRY POST-COVID Bharti Sanghi, Founder, Life-Home Alone Brand

he world might have come a long way since the first wave of COVID-19 in 2020, but the pandemic and its impact are still very much among us. Thousands of cases are still erupting every day, and the economy is yet far from glory. Ever since India saw its first lockdown in March 2020, businesses, enterprises, industries, and livelihoods took a significant hit. Despite having phases of reopening and overall efforts to make things better, they are not looking better yet. Among industries that bleed the most is the food industry. First, the lockdown disrupted the operations, then the strict guidelines about operating during assigned hours, a limit on the seating capacity, irregularities in the supply chain, problems with sourcing the ingredients, and the cash crunch to run the business like usual -- all these factors took a toll on the food industry.

CXO OUTLOOK August 2021

However, like everything else, the pandemic has laid out a new normal for the food industry. A normal that looks different and might stay around to define the future rather than fading into oblivion. This new normal has introduced some trends that are defining the food industry post-COVID. The COVID-19 has entirely revamped the operating patterns of food growers, producers, manufacturers, and retailers. With radical changes in the supply chain and stricter operation measures dictating terms, the ingredients on the plate and the consumption pattern of the masses are undergoing a metamorphosis. The regular sales and business format are also changing in the post-COVID world. People have adapted new consumption habits with more focus on sourcing ingredients from local and hyperlocal sources. Awareness about

With radical changes in the supply chain and stricter operation measures dictating terms, the ingredients on the plate and the consumption pattern of the masses are undergoing a metamorphosis

Bharti Sanghi is a Food Expert who brings to food connoisseurs, a variety of age-old dishes and desserts with her tasteful twist. Homealone Foods was started in 2004 and has been in the food business since last 13 years. Bharti Sanghi comes from a prestigious Marwari Pittie family and her penchant for traditional recipes made her passion into a successful venture. Her food ranges from Rajasathani cuisine like daal puri, sangri with products sourced directly from Bikaner, to authentic maharashtrian, gujrati, and the ubiquitous north Indian, western cuisines too. Her Thepla has a special shelf life without any preservatives and has been carried overseas by over 500 children studying abroad. She has been featured in most newspapers & magazines including HT, Times of India, Marwar, and has over 3 pages of google covering her work.

CXO OUTLOOK August 2021

seasonal produce with more nutritional value has spiked among the consumers. Healthy food has become the new cool. A larger slice of the population now relies on the online marketplace for daily needs such as grocery and dairy. The old-age adage of 'necessity is the mother of invention' came true in the post-COVID world. The world has seen some of the most innovative experiments and their execution during and after the pandemic. The innovation ranged from a mobile app to suggest the quietest times to drop at a grocery store to quirky headgears designed to instil social distancing among people. As more people turned to the internet during different phases of the lockdown, they doubled as users of these new products and services, thus boosting the innovative spree. Technology came to the rescue when the food industry needed it the most, and it is going to continue driving the change in the post-COVID world. While the food industry deserves praise for showing zeal towards innovation and adaptability, technology became the true enabler by facilitating solid execution on the digital platforms and the ground. Local food delivery giants such as Zomato and Swiggy saw increased orders, and the trend is growing stronger. More pop-up kitchens and cloud operations are making their way into the market. After all, the consumer is ready to try something new with the guarantee of hygiene and safety. Food safety has taken the spotlight in the post-COVID world. A more sizable segment of the population now embraces the idea of better hygiene not just while eating out but also while cooking at home. Some new-found practices include strictly washing all ingredients and being mindful of the overall nutritional value of a meal. Gone are the days when ingredients hit the pan just for the sake of visual appeal or purely because of their taste. People are now more mindful of their macros and micros, and businesses operating in the space are registering the new demands of the discerning diners. They are investing in new technology to offer better food safety for a worry-free experience for their patrons.

Chefs are also experimenting with their cooking to provide more value per serving. Introducing locally sourced and seasonal elements into their dishes are becoming the new norm. Social distancing guidelines have introduced a more intimate outdoor dining experience with lesser people around. The hesitation in stepping out has also stirred a new demand for DIY kits where gourmands can recreate the experience of dining at a restaurant at their homes. Since the focus on food safety has intensified, street food vendors -- not perceived as the ones with the best hygiene standards -- are bearing the brunt. These have made way for gourmet street food brands that can offer a double dose of taste and hygiene at the same time. Existing street food vendors are also improving their food safety and hygiene game to stay relevant. The dietary preference is also projecting a conscious shift towards sustainable choices. Since the Coronavirus is suspected to occur from an animal meat source, it is stirring self-reflection among people. Especially since global outbreaks like the Swine Flu has come from animal sources in the past. People now register the need to question their food choices and make informed decisions based on how their consumption impacts them and the environment. The adverse effects of the meat and dairy industry on the climate are also hitting the headlines. How they contribute substantially to the emission of greenhouse gases, thus accelerating climate change and global warming, has become a wellknown fact. Supplied with this new-found revelation, more people are asking significant questions. They are deciding to turn either vegetarian or vegan based on their preference. Veganism is on a substantial rise, and people are opting for mock meat options for occasional indulgences. The west is already big on veganism, and it is only a matter of time when the Indian diaspora also rides the wave. The plant-based diet is all set to be the next big thing, and it is a trend that will define the food industry in the post-COVID world. To wrap it all up, while the food industry is still far from coming back on track, it is looking at a future filled with experimentation and a lot of excitement. It will be interesting to see how it unfolds ahead.

Since the Coronavirus is suspected to occur from an animal meat source, it is stirring selfreflection among people

CXO OUTLOOK August 2021

EXPERT OPINION

Walking the Way to Expand with Technology Vimal Daga, Founder of Linux World (P) Ltd, Arth School of Technology, IIEC (Indian Innovation and Entrepreneur Community)

CXO OUTLOOK August 2021

A In his quest to make India future Ready, Vimal Daga, Technology Guru, believes that no technology can be as challenging or complex as the World suggests or presents to us. He believes that it is merely a matter of knowing the right path and taking it forward as per one's requirements". The right way of thinking or the belief that "Yes, I Can Do It" can change things in a dramatic way for you. Beyond being a technologist, technology guru, start-up mentor, World record holder, and TEDx speaker, Vimal Daga possesses many talents, roles, and accomplishments. Besides being the founder of Linux World (P) Ltd, He also heads Arth School of Technology and IIEC (Indian Innovation & Entrepreneurs Community) through which he is making aspiring entrepreneurs realizing their startup dreams. these verticals are working towards achieving his motto of Making India Future Ready.

s the food industry transitions itself to an automated future, she is rapidly picking, packing, and creating food in a connected way. A combination of innovation and advancement has enabled the food industry to expand rapidly. It will be a boon for food producers and small businesses, but even households and kitchens will speed up as well in years to come. My opinion is both positive and futuristic about how Artificial Intelligence for Food and Beverages may be utilized? In my opinion, artificial intelligence would be a great success and have a positive influence in the future in the food and beverage industry if it is used effectively? However, it is vital that the food and beverage industry is transforming and evolving at an accelerating rate. Technological progress has inextricably altered how the industry operates, including how food is delivered, packaged, and prepared. On the way, the industry has overcome many challenges towards automation and has managed to put some of these automated systems in place. Food manufacturers are looking for ways to improve productivity through automation, whether that be for processing or packaging food. Automation is different from artificial intelligence. Automation is a process flow that is predefined, while AI is a process flow that has a self-learning nature. Having already started off with food industries, I think the scope of computer vision in them is huge. Technologies like advanced sensing systems and robots, as well as artificial intelligence techniques, are working to revolutionize the food industry in a number of ways. What are the food industry's methods of sourcing synthetic assertiveness in India? At present and in the near future, I believe that India is moving in the right direction and all it needs is to speed up its pace and spirit. The tier 2 cities must harness technology as well and catch up with the metropolitan cities in the food sector. Metropolitan cities should also keep up with the international levels of technological advancement. In current times, the artificial intelligence and data sciences sectors are receiving substantial investments. Those we hear are reminiscent of Cambridge Analytica. The likes of Cognex have successfully made fortunes by specializing in computer vision. In India, there is a large number of food moguls who rely on technologies like these to enhance production efficiency. Our view is that initiatives like 'Make in India' will lead to the creation of more such companies, led by engineers, start-ups, and students of today, to pave the way for an intelligent future. Production, packaging, to tasting For a growing population around the world, technology makes it possible for food manufacturers to produce products more

CXO OUTLOOK August 2021

efficiently. Food safety and shelf life are largely tied to technology, and better use of machinery and software ensures inexpensive The food and beverage industry uses technology for testing, packaging, tasting, and many other purposes in order to assure quality and large-scale manufacturing of the goods. Technology such as this enables manufacturers to make large quantities with high quality.

intelligence to identify production faults, packaging problems, and so forth. Machines in the food industry guarantee quality and affordability as well. By utilizing machines, it reduces the costs associated with keeping food fresh and increases efficiency. The rise of robotics in the food industry is influenced by food tech. Robotics is becoming widely used in Europe, the Netherlands, Denmark, Sweden, and Italy.

Maximizing productivity and quality Consequently, this equips the industry to always meet the demands of customers with timely products. Food manufacturers, with the aid of technology, are able to maintain quality, packaging, and customer needs while reducing the time before a product is available to the public Many machines are embedded with artificial

It all comes down to sustainability Additionally, food safety is another problem that is being addressed and tackled via technology, and it is also being reduced that excess food is used, which will contribute to eliminating world hunger and also solving the problem of food waste that afflicts the entire world.

CXO OUTLOOK August 2021

Furthermore, technology is also extending its benefits to preventing crops from getting damaged. GPS tracking is enabling agriculture to monitor crops, soil levels, and weather patterns with technology-driven precision. Data analysis can be used by farmers to diagnose the soil, view a field's health, and track their progress. Drones play a large role in accomplishing this. By using drones, farms can identify and treat diseased and damaged crops without wasting a lot of time. It is imperative that food workers stay employed for the industry to succeed, although robots can make the process more efficient. A more automated environment can provide a faster environment and produce more goods faster than humans due to the high volumes of products and the demand for lower prices. Pandemics gave rise to aggressive technology use Aside from its usefulness in Agriculture and food sector from packing and production, advances in technology in the time of pandemics have yielded their benefits in health practices, food safety, and more. As part of ensuring food safety and cleanliness, many startups have also been identifying and separating organic food from chemical-laden, pesticide-laced foods. From ethereal packaging to micro packaging to even technology that kills bacteria, technology is being used in packaging now in many different ways. As stated earlier starting from the time of production till the product finally reaches its delivery station, sensors are used to keep a check on necessary standards, controlling temperatures, managing cold food chains, maximizing output, using technologies that helped the food sector in meeting the demands of the covid protocol also gave exposure to several new technologies. these include avoiding human touch, use of smart equipment, new-age technologies, tech like automation streamline operations, saving time, wait time, human intervention, automate a business process, removing communication barriers, fast cooking. In times of pandemic, these technologies gain more utility, as businesses are forced to operate with a minimum of staff and maintain the highest levels of safety and hygiene for their employees and customers alike. Technologies like The automation models streamline operations within enterprises to decrease costs, increase productivity and minimize human interaction.

The future of kitchens is cloud-based and intelligent Until the introduction of A1 in the food industry, food preparation was tedious and time-consuming, but nowadays it is more accurate and time-efficient, as well as hygienically superior. Smart kitchen appliances powered by artificial intelligence reduce your workload and make your life easier. Brands can automate repetitive business processes or tasks that follow a predefined rule with automation. With the explosive growth in online food delivery portals like Swiggy, Zomato, UberEats, Ola Foods & more (Indian online food delivery portals), cloud kitchens, which do not have a dine-in option, are becoming more prevalent in India. Even if it has a dine-in option, it won't be as big as a 2-4 seated restaurant since their main focus is to take incoming orders only. Also known by many other names, such as ghost kitchens, virtual kitchens, dark kitchens, and satellite kitchens, cloud kitchens are expected to grow exponentially in the time to come. Creating an environment of digital interaction Undeniably, the success of its performance during the pandemic spurred the rise in its future demands. Increasingly digital employees and digital transformation will be the next big advancement in automation. Through the synchronization of all communication resources in their digital environments, employees can eliminate communication obstacles boosting productivity, yet many businesses have reorganized their operations around mobile apps for ordering, delivery, and pickup, in addition to the use of contactless payments, outdoor dining, and reduced capacity in restaurants. The safety benefits that these changes provide are making their long-term business tactics. To meet the demands of customers who are increasingly seeking safer alternatives to dining in or taking out, operators are embracing new and innovative systems and technologies. Additional policies and procedures have been revised to increase safety, such as temperature checks, and new cleaning procedures. In addition to the recent changes, here are three new technological advances intended to save you time and resources:

CXO OUTLOOK August 2021

Technologies like advanced sensing systems and robots, as well as artificial intelligence techniques, are working to revolutionize the food industry in a number of ways

Digital Checklists Operators should automate their paper checklists that keep track of daily tasks, be it scheduling tasks, enhancing store training materials be it an issue of sanitation or cleanliness. Other than the Digital checklist Automated Receiving can save a lot of time as receiving modules will allow companies to keep track of goods and supplies. And The task management application and receiving module feature to record health details, temperature levels can ensure that organizations take timely safety measures and boost the efficiency of restaurant operations. The current, "Industry 4.0" era is dominated by smart technologies like the Internet of Things, Cloud computing, cognitive computing, and artificial intelligence. Smart homes and cars are a few areas where IoT has already started to spread its wings. We won't have to wait long to see smart technologies in our kitchens helping our mothers. After a long workday at the office, you come home tired, exhausted, and starving. However, you are too tired and too exhausted to cook. As for ordering food online, you don't want to do that either. You wished there was a robot who could help you with both cooking and organizing your kitchen. Essentially, Artificial Intelligence is set to change the scene for you, and innovative technology will make it a reality for Indian households. Human versus AI cooking I would also like to share how the food and hospitality industry is rapidly integrating artificial intelligence to make food tastier and enhance its flavor to enhance customer satisfaction, it is a question that might need

CXO OUTLOOK August 2021

to be considered too, but the more important question is how AI cooking performs when compared to human cooking when it comes to learning and implementing culinary skill. Our understanding of how humans apply knowledge is reflected in how they process knowledge. Chefs have always learned and gained knowledge of cooking after years of mastering the art of cooking. The practice of preparing food regularly ensured good taste and precision in its preparation. Nevertheless, his knowledge and database of recipes or ingredients is limited to regional cuisines, be you an Indian chef or a European one. Nonetheless, robot chefs have no such limitation as they can be provided with precise directions to prepare a wide range of delicacies. The extension of benefits to housewives The question that many housewives are seeking is how can artificial intelligence assist them with house chores and cooking? How does it make these jobs easier and faster and Another question many would think of is if AI can understand taste preferences and provide food with better quality than humans can so that I feel that an improvised meal can be prepared using whatever ingredients are available using the technology we have. For years, the developers have collected data on aromas and flavors and fed it to the application's neural network. The algorithms eventually find patterns that are intuitively pleasing to the user and are able to suggest palatable recipes. Taste preferences can be mapped with incredible precision using platforms. This means that processed food could be made to match specific, individual tastes rather than just appeal to the masses. So yes...It can.

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LEADER’S INSIGHTS

TECHNOLOGY IS THE KEY THAT CAN UNLOCK THE VAST POTENTIAL OF INDIA’S SMALL-HOLDER FARMERS Dr. Pablo Erat, Deputy CEO & Suniti Gupta, MD and CEO, InnoterraTech

Dr. Pablo Erat is co-founder of Innoterra AG, a Swiss-Indian food and technology platform company that aims to reinvent the food ecosystem to provide healthy food to the world in a sustainable manner. He currently serves as the member of the board and maintains strategic oversight of Innoterra’ s corporate and business units. Suniti Gupta is the Managing Director and CEO of Innoterra Tech, a business unit of Innoterra, a Swiss-Indian food and technology platform company that aims to reinvent the food ecosystem to provide healthy food to the world in a sustainable manner. She currently leads technology initiatives of Innoterra Platform Services.

ccording to the World Economic Forum, more than 80% of the food consumed in the developing world comes from small- and mid-holder farmers. In Asia, Africa and parts of South America, smallholder farmers are the backbone of agri-economy and rural entrepreneurship. With improved access to reliable energy and cheap mobile data, many of them have been able to put themselves on a path to profitability. Still, most of these farmers lack access to infrastructure and digital and physical services to be able to improve their practices, add value to their products and reach new markets and revenue streams.

CXO OUTLOOK August 2021

This unaddressed gap is one of the key challenges we are working to solve at Innoterra and our 20+ years of experience of working with Indian farmers makes us certain, that integrating technology from the grassrootlevel up is the key to unlock the vast potential of smalland mid-holder farming communities. An integrated ecosystem to empower the farmer The emergence of digital technologies, especially smartphones that are available ubiquitously in India, have connected farmers and rural entrepreneurs to the wider world. Their awareness levels are increasing, helping

WE NEED AN ACTIVE NETWORK OF FARMERS AND SERVICE PROVIDERS IN THE VALUE CHAIN, WITH 360-DEGREE SUPPORT AND INTEGRATED SERVICES MADE FULLY ACCESSIBLE TO SMALLHOLDER FARMERS

CXO OUTLOOK August 2021

TECH ENABLEMENT IS PROLIFERATING SPEEDILY IN PARTS OF INDIA, BUT BY NO MEANS IS IT THE MAGIC BULLET TO SOLVE ALL CHALLENGES FACED BY SMALL-HOLDER FARMERS

CXO OUTLOOK August 2021

them discover new possibilities to improve their practices and add value to their produce. Platforms such as YouTube have transcended language barriers, making a wide variety of videos - including product reviews, best practices and field demonstrations – available to them. Today, small-holder farmers can identify what they need to do to get better value for their produce and expand their business. Yet, unlike the large-scale farmers from the developed world, they face impediments due to the fragmented nature of the current food ecosystem. To reap the full value of their produce, they need access to situation-specific knowledge, the right kind of farm inputs, optimal financing and insurance, tools for crop monitoring, product traceability, post-harvest infrastructure and quality assessment, along with greater access to the markets. All these different cogs need to be connected to deliver real benefits to the farmers. It is therefore imperative that we take an integrated and open platform approach that brings various players and parts of the value chain together. We need an active network of farmers and service providers in the value chain, with 360-degree support and integrated services made fully accessible to small-holder farmers. Such a platform approach creates multiple physical and digital service touchpoints providing farmers with more viable options and tailored information for decision making, empowering them to actively transform their businesses towards an economically and ecologically attractive future. Very importantly, a platform built to scale will eventually drive a network effect giving smallholder farmers scale advantages previously only held by large farmers. For instance the “power of a virtual collective” will provide farmers access to decision critical data, create space for virtual collaboration, reduce prices of farm inputs and infrastructure, make tech integration more cost efficient, and improve price realization. We also expect to see new technologically driven revenue streams emerge such as the trading of carbon credits and collectively using data as a currency, which could become a significant additional

value stream for smallholders across the country. These future opportunities would also add another major incentive for the adoption of integrated more sustainable farming models. Traceability as a case in point A great example of the platform approach working smoothly to augment farmers’ business comes from the verdant Alphonso mango orchards of Ratnagiri. The Alphonso mango, one of the most premium variants available, has a geographical indicator (GI) tag for the Konkan region in Maharashtra. Yet, the mango growers couldn’t translate the GI tag into higher prices for their crop. The challenge was to establish proof of authenticity needed to claim the premium price in the market. InnoterraTech worked closely with the Hapus GI Authority and farmers to make each mango produced in the region completely traceable, right up to the farm level. More than 400 million mangoes produced in the region are now in the process of getting traceability stickers – not only a mark of authenticity of Alphonso mangoes, but also a direct recognition of the farmers’ efforts to bring the best quality mangoes to the consumers. This initiative has helped the farmers in the region to increase their income substantially, by charging a premium that their product deserves. Similarly, farmers in Kashmir and Himachal Pradesh are now using traceability solution with their GI-tagged cherries, apples, chiku (sapta) and other products, making their presence felt in the global markets. InnoTrace, the traceability application that makes this possible, is also making a range of product information accessible to the customers through a simple QR code scan. Consequently, buyers can make an informed decision about the food products, based on source, authenticity, sustainable growing practices and farmer-friendly pricing strategies. A generational shift in the making Tech enablement is proliferating speedily in parts of India, but by no means is it the magic bullet to solve all challenges faced by small-holder farmers. It is a long journey that will take meaningful investment of time, efforts and resources by all the stakeholders involved. The agri-tech start-up sector is still evolving in India. It is commendable to see young, energetic and

savvy entrepreneurs choosing to focus on transforming agriculture and food ecosystem, but it is also important to note that expectations of fast-paced adoption of high-tech solutions by the small-holder farmers are not realistic. In certain geographies, fast paced startups have not been able to deliver on their promises to the farmers, thus eroding the farmers’ trust. In some cases, solution providers are unable or unwilling to invest the resources to do capacity-building for small-holder farmers to enable tech adoption at grassroot level. The crucial point is that adoption of technology is not a one-off leap for the small-scale farmers. It is a journey that begins with small steps – and we very often see that it is a generational shift in making decisions differently, being open to new possibilities and letting go of some old, decadent practices. At Innoterra, when we work with farmers and their families, we ensure they know we are fully committed to the process until its completion. Also, to build a robust community network, real-world outreach, on the ground, to our farmer partners is as important as the digital one. Scaling business and expanding earning potential are goals that are every farmer’s ambition, but onground transitions needed to achieve these goals are different for each of them. Every farmer partner needs a uniquely calibrated roadmap to adopt to the platform and benefit from it. Mid-scale producers in semiurban areas may be more well-informed and inclined to accept more advanced solutions, while small-scale farmers working in remote areas may need support to figure out basic digital access to avail themselves to the services on offer. To ensure that all farmers get equal access and opportunity, close engagement and training is a pre-requisite. It is critical for businesses to fully commit to the transformation journeys of small-holder farmers, collaborating with regulatory authorities and other key stakeholders within the food ecosystem. The ambition of making India the provider of healthy, traceable and delicious food to the global consumer can certainly be achieved by a focused effort towards creating a robust, value-added and integrated food ecosystem. Companies that proceed with this conviction will make an important contribution to the blueprint of India’s development in the coming decades.

CXO OUTLOOK August 2021

EXPERT OPINION

Rise in Technology in Indian Organic Food Industry Subrata Dutta, Group Managing Director, Organic India

CXO OUTLOOK August 2021

I Mr. Subrata Dutta is the Group Managing Director of ORGANIC INDIA, a leading manufacturer and exporter of organic teas, infusions, herbal supplements and food. Over the course of his career, Mr. Dutta has held various senior positions with top global brands across diverse sectors of FMCG, Retail, Lifestyle and Travel in companies such as PEPSICO, Wimco, Himalaya, and Samsonite. He has been instrumental in steering the companies he has worked with through transformational and path-breaking initiatives, he is known as a “turnaround specialist” in the industry.

ndia’s organic food and beverage industry has experienced a consistent growth over the past couple of decades. Backed by the widening middle class, gradual improvement in purchasing power, elevation in quality of life, and more disposable income, more Indians than ever before are consciously choosing organic food. The sector is also enabled by increasing policy focus and a number of government measures, which includes schemes such as Mission for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM), National Mission for Sustainable Agriculture (NMSA), the National Programme for Organic Production (NPOP), which involves an accreditation programme for certification bodies, standards for organic production, promotion of organic farming, so on and so forth. Moreover, improved infrastructure and market linkages of producer clusters with agribusiness, phytochemical, and more organized retail and e-commerce formats have contributed to this change. However, the most important emerging differentiator in recent years has been the growing health awareness amongst the masses and changing outlook towards the entire process of organic food, beverages, and farming, which are important factors propelling growth in the sector. This is evident from the fact that the year 2019 had a record US $69 million retail sales of organic food and beverages. While the COVID-19 outbreak did bring about uncertainties and cause sudden disruptions in the market, transport and logistics, food processing units, and overall farming, the pandemic also made individual and public health central to the world discourse. Subsequently, organic food and beverage gained more importance in India. In the new normal, over the next few decades, environment and sustainability factors will force a stronger public, government, and policy inclination towards organic farming, food and beverage manufacturing. India’s organic food sector is expected to reach US $10.75 billion by 2025. Therefore, the sector is going to witness a steeper growth in years to come.

CXO OUTLOOK August 2021

However, with opportunities there are certain challenges. India’s organic cultivation potential is really underutilized. Over 30% of total certified organic producers in the world are Indian, but the country accounts for only 3.3% of global organic cultivated area. Other major challenges include transforming farming behaviour and culture within the country towards sustainable and organic farming practices, and higher storage and transportation costs. These factors make leveraging latest technologies at all levels of organic food and beverage production essential for the industry to undergo a complete transformation and usher in the future of organic industry that can meet future demands, widen product range, expand reach, ensure rapid seamless delivery, and reap dividends for the agriculture and food processing sector. Organic food and beverage industry has already begun adopting technologies at a number of levels, ranging from farming, cultivation, storage, to supply chain and logistics, to food processing and sales. Organic agriculture Agriculture in India is impacted by a variety of factors and influences. The overall agriculture and specifically organic cultivation process has become increasingly scientific today to the extent that various technologies are being used to gain different insights on specific aspects related to agriculture. New-age technologies have begun addressing age-old challenges of unpredictable climate changes, monsoon and irrigation, crop-pests, crop protection, soil enrichment without fertilisers, so on and so forth. Not only is technology addressing traditional challenges, its opening new frontiers and making future possibilities a reality. Organic farming has begun adopting smart farming. Ushering in the era of Agriculture 5.0, the sector has begun using IoT, data analytics and machine learning for precision agriculture. Modern agriculture has already employed geospatial and IoT sensor

CXO OUTLOOK August 2021

driven technologies for mapping cultivation areas, which is especially effective for small holding farmers. Advance technologies are enabling production from side streams and waste along with main commodities and enhancing sustainable cultivation through drip irrigation processes. Organic produce needs careful storage and handling post cultivation, and technologies are helping us design and construct smart storage systems. Food processing and Integrated value chain Ensuring quality and safety is the most important factor for food processing industry. While the F&B industry is highly mechanized, it is at the forefront of adopting digital technologies to ensure undifferentiated quality of products. Digitalisation is revolutionising the food processing sector across primary, secondary and tertiary processing stages. Integrated with the entire value chain, from procurement and storage of raw ingredients to retailing, digitalisation is reshaping the industry altogether. AI, IoT and advance data analytics are recording and assessing data and providing data driven business insights, building in efficiency and sustainability in the system. The organic food and beverage industry has complex forward and backward linkages in the entire value chain, from growing, processing, logistics, wholesale trade, retail trade to exports. As organic product range, especially consumables like food and beverage, is more natural with a shorter shelf life than others, the industry has adopted various value chain technologies to seamlessly manage the flow from farm to food processing units to market place to customer shelf. Several technological tools are available to effectively plan, manage, and optimize production and sales. The ongoing COVID-19 pandemic has further pushed the sector to use digital technologies to automate and establish direct-to-consumer channels, which with support of ecommerce

India’s organic food sector is expected to reach US $10.75 billion by 2025. Therefore, the sector is going to witness a steeper growth in years to come

players have disrupted traditional retail models. Integrated, connected, and smart value chain models. Sales and marketing Digital technologies have revolutionized sales and marketing across sectors and food industry is no different. Backed by e-commerce and online marketplace, the technologies have empowered the sector with greater accessibility to masses, enabling brands to drive various strategies across the consumer journey from customer awareness and consideration to purchase and delight. Grocery delivery applications have replaced the local kirana-wala and the trend is not limited to metros or tier 1 cities but is rapidly shifting to tier 2 cities and beyond. The direct-to-consumer channels have

blurred the lines between sales and marketing, making real-time conversions possible. The rise in advance technologies is empowering the organic food industry achieve greater possibilities, and more transformations are in the offing. The new age food and beverage industry are witnessing emergence of 3D food printing technology, cloud kitchen, robotics and intelligent processing solutions, e-commerce and other home delivery solutions, blockchain in entire value chain matrix, and increasing role of AI and IoT across domains. In its endeavours to be self-reliant, it is imperative for India to capitalise on its vast organic cultivation potential and food processing industry and allow advance technologies to pave the way to the future of organic food industry.

CXO OUTLOOK August 2021

FOODIE’S IDEAS

How is Technology Shaping the Future of Food? Satyajit Hange, Co-Founding Farmer, Two Brothers Organic Farms

Satyajit studied Humanities (Arts) after his schooling at the Bishop's School Pune. He then went ahead to graduate in Economics from FergussonCollege and then did an MBA with a specialization in marketing from the Department of Management Sciences, University of Pune. He worked in the banking sector for almost a decade with companies like KotakLife Insurance, Citicorp Maruti Finance, DBS and later at Bharti Vidyapeeth. At TBOF, besides being a farmer and overseeing the farm daily operations, he is also the CEO-Director.

CXO OUTLOOK August 2021

hat food means to us now is vastly different from what it meant to our grandparents. The rapid progression of the food industry often leaves the consumer overwhelmed with myriad choices. Ingredients are no longer specific to a region or even a country. Community-centric diets have given way to global cuisine. But within the confusing maze of all the food information floating everywhere, there is also a realisation of going back to the roots. A miniature attempt at kickstarting the reset button is underway and likeminded farmers are reaching out to support that thought process. Two Brothers Organic Farms (TBOF) was founded with the single-minded intention of bringing urban education into the rural farming setup. The need for sustainable food production was keenly felt. Agriculture can no longer be perceived as the occupation of the agrarian community who are largely under-educated. The wealth of knowledge that the Indian traditional farmers possess is beyond what we can imbibe from hours spent in the classroom over voluminous textbooks! In 2017 we entered into the e-commerce space, on Shopify, to bridge the gap between our farm-grown produce - small-batch, handmade food and the end consumer. Technology was here to stay and using it to advantage seemed the best option to get the word out. Now, almost four years later, it was probably one of the best decisions that we made. How else could a farm located in the small village of Bhodani in Maharashtra satisfy the food requirements of a consumer sitting thousands of miles away? Outside the technology landscape, there was no way for them to know of our remote existence. Today, we have been able to reach out and service customers in over 48 countries and 680 cities worldwide, apart from India, through e-commerce powered technology.

Today, we have been able to reach out and service customers in over 48 countries and 680 cities worldwide, apart from India, through e-commerce powered technology

CXO OUTLOOK August 2021

More and more people are concerned about the impact their choices make on the planet and local ecological systems. They want to be informed of the source of ingredients, the packaging used, the people and processes involved in its making - how big is a product's ecological footprint and how sustainable is the entire lifecycle of the product – right from sourcing to designing to packaging and shipping. Technology has made it possible for us farmers to carry our customers along through the entire lifecycle, they get access to real-time visuals and updates from the farm. This information - that technology allows us to share by the click of a button - is what gives our brand the authenticity that people are longing for. Social media platforms, frequent short messaging updates via instant messaging services and more elaborate communication via email, voice/ video calls has helped the consumer hop on this exciting journey of understanding what goes into their food. It goes beyond accreditation on paper. Here we are real people, with fingers in the soil, working every day with nature’s elements to grow food, the right way. We know that there are folks out there who are looking for food, grown in a conscious manner. Rising consumer awareness has led to more informed choices that’ll be good not just for the user, but also, for the planet while making room for social good. Buyers want to know and see the social good brands are bringing into this world. The rapid advancements in technologies and it augmenting e-commerce, online social media platforms have made it possible for small businesses like us to access new markets and reach a global audience. Search engines and the technology that powers them are evolving by the minute. For a consumer sitting in any corner of the world looking for a specific food, it is accessible at one’s fingertips! Whether that is farm-grown handcrafted minimally processed food, or fresh fruits and veggies, or piping hot soup or freshly brewed coffee from a restaurant, or GI tagged single origin ingredients that are grown in specific geographies of the world, it is all available. Today some of our customers living across the oceans, on the other side of the globe, know our cows by their names! The A2 ghee is a product we take great pride in because it is made in exactly

CXO OUTLOOK August 2021

the same manner as it was done by our ancestors. Sitting in an apartment in a skyscraper tapping away at the keyboard, the busy professional need not have to compromise because they don't have access to the countryside. A few minutes of browsing to scan our website is all it takes to place an order! We often do live broadcasts from the farms and customers message us from around the globe, they can communicate with us in real-time. Despite living in different cities, countries or continents, technology unites us in a way that we feel connected. Hearing their feedback continues to be our greatest reward. There’s a reason we like to refer to our customers as the TBOF family. It is because of their support that we can get out there every day, plough that soil, nurture that food forest, and harvest rainwater to the fullest. Since not everyone can travel to the farm and buy at the source, we too want to remove the middlemen and interact directly with shoppers who are on a similar food quest. As a farmer-owned, small business, it matters so much to us that every decision we take has a direct, positive impact on the ecosystem. We have always strived for that personal connection with our customers, and only technology makes this possible; our virtual small world of real people! The trust in a brand comes when the customer is shown all that goes on behind the scenes. Technology also allows for innovations in quality control - advancements in testing for adulteration, purity, nutritional profiling, etc. All this has made it possible for small businesses to cater to some of the most evolved and sophisticated markets in the west. It allows us to meet every FSSAI mandate, FDA guideline, and provide more value to the consumer. Global food standards have to be adhered to when selling online and this kind of thinking allows Indian farmers like us to create a niche market for our consciously produced food. Technology powered aggregator platforms have paved the way for convenience in transportation. The ability to ship via the best shipping companies in the business helps us provide quick deliveries without delay and saves time. We are able to deliver to countries like the USA in less than 5 days; which we think is tremendous. Even if there are some bottlenecks along the way, robust

tracking technology allows us to locate shipments, process returns/exchanges or refunds. At TBOF, we want to keep providing food for a sustainable environment, a healthier population and ensuring that there is complete transparency in the process. A TBOF customer can see the journey of every rupee they spend with us. It goes towards recycling carbon, seed retrieval and conservation, securing rural livelihoods, creating an abundance of food knowledge that is documented for posterity. Being able to interact with customers online allows us to ‘keep it real.’ There was a customer who once was curious about one of our names. “What an unusual name Ajinkya is,” she wrote. We instantly emailed her and straight away it cemented a customer-brand bond. All grievance management is possible in real-time. Customer relationship management technology helps to track every ticket and provide the most fitting resolution within timelines. In the pandemic world, with most of the team collaborating remotely, automation of this kind has been such a lifesaver for small businesses. However large an organisation we grow to be, it is vital for us that the soul of the brand continues to be in the interactions, the meaningful packaging, and the feedback from those looking to include real food in their diet. When we make the Amlaprash and tell its story, we visualise a family of many generations gathered around in happy banter, ensuring the other is well looked after. The vision is to be able to make a global impact - to be able to create a world-class business out of a farmer-led, made-in-India venture. We strongly believe that India is poised to become the Organic Food capital of the world. Especially, with the soil and biodiversity that is native to our land, the rivers that give generously, and our indigenous cattle that provide for farmer livelihoods to this day. A UN report had stated how 70% of the food we eat comes from small farms. This is exactly what we have in this country, small landholdings and farmers who really are tired of working with non-cooperative machinery. From the very start, we have been able to use technology to tie gaps in the value chain and our applications of it have constantly evolved over the years. It’s been a game-changer for us.

CXO OUTLOOK August 2021

EXPERT OPINION

What Trends will the Indian Food Tech Sector see in 2022? Rohit Mhatre, Co-Founder, Lokal Kitchen

CXO OUTLOOK August 2021

Rohit Raju Mhatre is the CoFounder of Lokal Kitchen, a food-tech company focused on marketing, selling, and delivering home-cooked meals to households and offices. Rohit has close to 10 years of experience in the food industry from working with Intercontinental Marine Drive and Radisson Blu Goa to setting up his own corporate catering and school catering firm to finally setting up Lokal Kitchen with his childhood best friend and co-founder Rohit Gawli.

rediting things to Covid-19, the food tech industry for the past 18months has grown at an unbelievable fast pace. Since the past few years, India has put efforts to accept modern changes, which has helped the food tech industry boom unexpectedly. The use of digital transactions at every small outlet in metro countries of India has shown tremendous growth in this industry. The Government of India has been focusing on the growth and development of the food processing Industry. The Government is making all the efforts possible to encourage investments in this industry through the Ministry of Food Processing Industry. Whether you visit a 5-star restaurant or a small street food joint, almost all the merchants and restaurant-owners have started accepting money digitally. Few joints have reached a technology level where the food and bar menus are displayed digitally. All that needs to be done is to scan the barcode and see the menu on your phone. Digitalizing things on an overall level has given room for improvement in food and product retailed areas. Moreover, India's food processing sector is one of the largest in the world. This sector is well known for its rapid growth and huge profit resulting in a great contribution to the world food trade industry every year. Due to increasing urbanization, the demand for food in India has increased in every possible way. There is now a greater demand for healthy, homecooked meals leading to the emergence of new business models like cloud kitchen and meal subscriptions. Ordering food online has now become a habit. Earlier, food delivery charges and food taxes were some of the main reasons for not ordering more food but the pandemic has changed that perception mainly because that was the only option left and viable during such a difficult time. With an increase in urbanization and fast-paced lifestyles, there is limited time available for cooking and meal preparation resulting in great demand for home cooked meals. Also, the proportion of working people in this industry has been increasing continuously both in the urban and rural regions. A few of the trends that have been happening and are creating greater demand in the future as well in India are as follows: High demand for home-based food The unprecedented turn of events witnessed last year impacted economies and businesses gravely,

CXO OUTLOOK August 2021

however, I firmly believe that irrespective of the situation, the spirit of the people of this country is hard to dampen, especially those with entrepreneurial dreams. During the pandemic we saw multiple food tech brands emerging mainly the following in mind: 1. To provide healthy home cooked meals, a great alternative to restaurants 2. Help support women empowerment by providing these house makers with a platform to earn, amidst the pandemic There’s a huge need in the market for producing healthy and hygienic food that does not burn a hole in your pocket. We saw multiple food tech brands capitalizing on this concept by partnering with Home Chefs who have been individual sellers for a long time and want to increase their sales. Most of the new age food tech company’s offer a wide range of regional and global cuisines (via multiple cloud kitchens) to facilitate eating healthy home-cooked meals. Moreover, commercially prepared dishes are commonly deemed unhealthy due to the high levels of preservatives and oil in them. Seeing the current trend, it seems obvious that increase in demand for home-based food and home deliveries is increasing rapidly. Aggressive domestic demand of food on Pan-India level India's diverse agriculture climate makes it a great location to cultivate a wide range of fruits and vegetables. Being a densely populated country, the demand for a variety of food in India is too much. Moreover, Indians are very well-known for their versatility in food. India is a diversified country with a population of many religions. Each tradition and religion has its custom and taste when it comes to food, resulting in great demand for different types of spices, vegetables, fruits, etc. Due to such an increase in demand for food, farmers in India need to increase the quota of agricultural land to grow more crops or enhance productivity on existing agricultural land by adopting new methods of fertilization or irrigation processes

CXO OUTLOOK August 2021

Increase in export opportunities Having self-sufficiency in food grains has been one of India's principal objectives of economic development. India has emerged as an agricultural exporter in the past decade. India is now the world's seventh-largest exporter of agriculture products in 2013. Globally, India has become a significant player in terms of exporting rice, cotton, sugar, and meat. Keeping the current situation in mind, the demand for food products on a global level has increased tremendously thereby allowing India to export more food products. India exports agricultural products and processed foods to more than 100 countries/regions with major exports to the Middle East, Southeast Asia, the European Union (EU), and the US. It is expected that the Indian online food industry market is expected to grow at a compound annual growth rate of 25-30 percent. A report conducted by Google and Boston Consulting Group says that the growth in this industry is expected to reach 7.5-8 billion by 2022 from 4 billion. From the start of the pandemic, few reputed online companies like Bigbasket, Lokal Kitchen’s Fresh Fleet, Grofers, Licious, etc. have evolved into efficient online food delivery platforms. This trend has helped them get new customers and has increased their profit margins. Food innovation becomes a significant step for food lovers. Not compromising on quality, they are ready to pay to make things progressive in this industry. Lastly, the food processing sector in India is growing at an average annual growth rate of around 8.41 % between 2014-18. This industry in India is an unchanging ecosystem that is opening itself up to technological and social experiments and opportunities. Opportunities for investment in this segment are now expected to increase once the infrastructure of supply chains and distribution enhances past the challenges of Covid-19.

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CXO OUTLOOK August 2021

LEADER’S INSIGHTS

EVOLUTION OF CLOUD KITCHENS Ankush Mantoo & Abhishek Bansal, Co-Founders, KitchenXS Ankush has 6+ years of experience in the hospitality industry. Before starting Kitchen XS,

he had a successful stint at entrepreneurship in Dubai, where he started two restaurants in Dubai and scaled them to reach profitability in the shortest amount of time. He was the Head of F&B Operations at Jumeriah group, where he operated several F&B brands and played an integral role in launching Dubai’ s most exquisite restaurants. His dedication to the industry led him to win various accolades and coverage across the Dubai hospitality industry & was recognized as one of the youngest restaurant managers in Dubai hospitality industry. Having a Bachelor’ s degree in Commerce from Delhi University, Abhishek Bansal is a CoFounder of KitchenXS. He comes with a deep financial & business understanding across different sectors. He has worked with Merisis Advisors as an Investment Banking Analyst and he is a CFA Charter holder. He has worked with Let’ s Transport and has helped various earlyage startups in their fundraising.

loud kitchens have taken the food services industry globally by storm. For anyone, who is still not privy to cloud kitchens, Cloud kitchens are delivery-only restaurants that sell via online channels without any dine-in presence. To give you a sense of how perverse this concept is, almost 600 outlets are delivery-only out of the total 3000 restaurants listed on Zomato, approx. 20% of the listings

CXO OUTLOOK August 2021

in Chandigarh on Zomato, a statistic that continues to rise as the food services industry further embrace this trend, accentuated by the fall in retail business due to lockdown and the consumer’s shifting preference towards convenience consumption over experiential. Growth and widespread acceptance of cloud kitchens have been a boon for entrepreneurs looking to enter and make a mark in a food services space.

THE CLOUD KITCHEN MODEL HAS SIGNIFICANTLY REDUCED THE BARRIERS TO ENTRY & HAS OFFERED A PERFECT PLATFORM FOR FOOD ENTREPRENEUR TO VALIDATE THEIR PRODUCT AND PRODUCT-MARKET FIT IN A COMPARATIVELY CAPITAL-EFFICIENT WAY

CXO OUTLOOK August 2021

The cloud kitchen model has significantly reduced the barriers to entry & has offered a perfect platform for food entrepreneur to validate their product and product-market fit in a comparatively capital-efficient way. Such reduced barriers have fostered risk-taking and food innovation among the food enthusiasts, who leveraged cloud kitchens to experiment with cuisines or launch specialized gourmet products in a particular cuisine. Brands such as Homely & EatFit came and offer good quality home-cooked food meals at an affordable rate to the working millennials in the metros, a rarity in terms of cuisines to find earlier. Similarly, brands experimenting with trending cuisines such as Poki bowls, bubble tea or artisanal products in mass cuisine categories such as Burger & Pizza, launched as delivery-only, gained significant consumer recognition. It certainly benefitted the entire ecosystem as consumers got access to new and gourmet cuisines at an affordable price, and F&B entrepreneurs got a platform to launch and build their brand, and many later on pivoted to establish retail outlets such as Biryani by Kilo & Nomad Pizza, As we see the cloud kitchen model become a driving force in Food services, so, let’s evaluate the rise of cloud kitchens A) The emergence of Food Aggregators or Food logistics players Swiggy, Zomato and other food aggregators such as Uber Eats, Food panda were at the forefront of building and disrupting the status quo. Over the years, these startups raised massive external capital from institutional investors and inculcated the habit of ordering and consuming food at home, fueled by aggressive discounting and marketing push. This is the first inflexion point in the food services ecosystem that marks the transition towards off-premise dining becoming a significant portion of a restaurant’s business or revenue. B) The transition of a retail food outlet to a delivery-only outlet Fasoos was at the forefront of the shift in consumer preference from dining at the outlet or restaurant to offpremise dining (home or office).

CXO OUTLOOK August 2021

LAUNCHING A DELIVERY ONLY BRAND HAS NOT ONLY BENEFITTED NEW ENTRANTS, BUT ALSO EXISTING RESTAURANTS, WHO ARE STRUGGLING WITH THE BUSINESS.

After realizing that majorly its consumers are ordering online and have not visited the physical outlet, Fasoos decided to pivot from a high footfall high rental retail places to under-utilized real estate in a populated neighbourhood in delivery the only format. This shift allowed Fasoos to reduce its overheads and improve its profitability. This shift was the second biggest inflexion point in the Food services ecosystem and marked the trend of running cloud kitchen restaurants. Seeing the comparatively scalable & capital-light operating model and renewed VC interest, many new delivery-only brands such as Box8, Freshmenu and Innerchef, were launched to capture the growing offpremise food consumption market. C) The emergence of Multi-brand cloud kitchen Fasoos post its success as a delivery-only restaurant, launched a specialized delivery-only Biryani brand

under Behrouz, and Behrouz was an instant hit across all its locations. Fasoos then launched a Chinese brand under “Mandarin oak”, a pizza brand under “Ovenstory" and multiple other specialized cuisine brands. This trend was adopted by multiple other food services startups such as Box8, inner chef, who launched an umbrella of delivery only specialized brands, catering to a particular cuisine, while utilizing the same real estate and labour. D) The emergence of Kitchen Infrastructure as a service So, as the phenomenon of operating delivery only restaurants spread across the globe, and both new and established food ventures contemplated starting delivery-only restaurants, the demand for industrial kitchens shot up significantly. This shift marked the emergence of offering Kitchen Infrastructure as a service in the cloud kitchen ecosystem, first initiated by Travis Kalenick, Founder of Uber, where a sub-unit in a big industrial kitchen is sub-let to food brands to operate. A similar concept was embraced in India by Food aggregators such as Zomato & Swiggy, and new-age startups such as Kitchen Centre, Kitchens@, who were offering furnished kitchen space in populated neighbourhoods to the food brands to establish and operate. This shift made starting a delivery-only restaurant, even cheaper and more attractive as a food brand can rent a pre-built kitchen at a slight rental premium over renting a place and spending INR 3-5 lakhs in building a basic kitchen infrastructure. E) The emergence of 3rd Party Fulfilment models But again, renting a pre-built kitchen, fitting in the desired equipment and hiring staff to manage the operations is still a laborious and capital intensive task. So cloud kitchen operators are partnering up with 3rd party food brands are doing end level fulfilment for the brands. For that matter, we at KitchenXS have partnered with brands, catering across different cuisines and are offering them distribution to new neighbourhoods, in delivery only mode by opening our kitchen and operating infrastructure to them and acting as their fulfilment partner.

The same ideology has been adopted by Rebel foods (Fasoos) as well, as they partnered with Wendy’s, Natural Ice creams, Mad Over Donuts and many others and launched them pan-India across the locations Rebel Foods is operating. This marks the latest shift in the cloud kitchen ecosystem, probably the most exciting, and has similarities to the emergence of warehousing and e-commerce fulfilment services such as Amazon Fulfilment or Delhivery, which democratised scalability & reach for D2C and consumer brands. What lies ahead? The food delivery market in India is still at quite a nascent stage as compared to developed countries or China. As the disposable income across the country rises, and more people get access to smartphones and connectivity, we see the trend towards food delivery further rise, thus further fuelling the demand for food delivery services. Launching a delivery only brand has not only benefitted new entrants, but also existing restaurants, who are struggling with the business. By Leveraging their current outlets, many existing restaurants or food brands have launched successful delivery only food brands that significantly improved the business economics of their outlet. As the ecosystem evolves, we will see majorly all food brands exploring an omni-channel presence, i.e. the existing retail brands, operating a mix of both delivery only and retail outlets, where the delivery only outlets will offer them reach and ability to offer convenience to the consumer, and the retail outlets will be more experiential oriented. Although what we have observed is running and building a consumer food brand is very different to running cloud kitchen operations. So going forward, we will see a chasm between cloud kitchen operators emerge, one will be those, who are focused on building and growing their consumer-focused food brands and to achieve their delivery scale and presence, may partner-up with other segments of cloud kitchen operators, who primarily excel in cloud kitchen operations, and request the kitchen operators to do the order fulfilment on behalf of the food brands, something that we at KitchenXS and Rebel Foods are currently doing Yet this is just a beginning of a new ecosystem, and we may see many more innovations and new business model innovations as the cloud kitchen and food delivery ecosystem evolves.

CXO OUTLOOK August 2021

EXPERT OPINION

Next Gen AI – Personalised Food Intelligence Akshaye Jalan, Founder, Plan My Food

CXO OUTLOOK August 2021

Akshaye Jalan is the Founder of Plan My Food. With millions of hours of research, store and nutritionist visits, doctor consultations, math and statistics refresher courses, and technology malfunctions, he created multiple proprietary algorithms that break down each product to the molecular level, analyze the quality and nutritional value of each ingredient and compare how well they match our unique needs and PlanMyFood was born. He has completed his Masters from Thunderbird, the top ranked International Business program in the country.

How many decisions do you think you make about food daily? Let’s start from the time your annoying alarm reminds you that the universe has a schedule for you - Do you think about what to drink? The warm water or detox tea your dietician, fitness guru or influencer recommended or your favourite tea or coffee concoction? Whether to listen to your doctor and skip the sugar and go with an unfamiliar tasting “natural” sweetener or to take charge of your health and ditch a sweetener altogether. Before you know it, your stomach awakens and asks you what’s for breakfast? Your brain ever responsive, kicks into overdrive, evaluating whether to skip breakfast or order it or make it or give instructions to someone to make it or to simply grab it on your way to work? And this is just the first few moments of your day! 200 decisions a day. That’s how many we make on average. Just for Food. Imagine the number of decisions, if you are looking to lose weight or gain muscle or have dietary restrictions, a lifestyle disease or food allergies! Imagine the number when you’re trying to choose from 10,000 groceries screaming that they are the best choice for you or picking a lunch option from the 1,000,000 options on your go to food delivery app. Now imagine this; what if you didn’t have to? What if you woke up to boiled water and a sachet of your dietician’s recommended detox tea, got nudged by your phone that your breakfast was either ready in your fridge, arriving (tailormade to your dietary needs) in 30 minutes or the ingredients were ready in your kitchen for you (or your help) to whip up along with the recipe to give you the right start your day deserved! Data Science, AI and technology has opened up a pandora’s box of possibilities that will change the way we make, consume and engage with food. Imagine a world wherein food recommendations were made keeping your genetic predispositions, health parameters and your consumption behaviour. Where all this data; your health, the medical and dietary diagnosis and the world of

CXO OUTLOOK August 2021

Data Science, AI and technology has opened up a pandora’s box of possibilities that will change the way we make, consume and engage with food

packaged food and foodservice all worked in complete synchronicity to help you alleviate the burden of the 200 daily food decisions and empower you to lead a healthier, happier and more content life. Seems far-fetched? Well think again. Powered by tech advancements and driven by AI, work has begun in all of these areas. Big Data and Analytics are allowing companies to innovate by better understanding consumer decision making, behaviour and consumption habits. Re-identification is helping analyse traffic flows in malls and grocery stores, and AI powered bots are collating, monitoring and evaluating consumer interaction and feedback to give Brands, Manufacturers, Distributors, Retailers and Advertisers consumer insights like never before. NLP and ML are helping create state of the art automated solutions to help enhance customer satisfaction and experience. IoT is creating targeted messaging opportunities at POS and helping the retail trade optimise inventory and price points. Blockchain traceability is helping the foodservice industry increase transparency in and optimise their supply chain and drive fresher, more nutritious supplies. Personalised Food Intelligence is empowering consumers to demystify what’s really in the

CXO OUTLOOK August 2021

food that they are buying and understand how it matches their health goals, dietary restrictions and allergies. One no longer needs to overwhelmed by the overcrowded grocery shelves and ingredients one cannot pronounce. Something as simple as buying bread no longer needs to be an impossible task even if you gluten intolerant, on a Keto challenge, watching your cholesterol and hypertensive; a simple scan and your phone will tell you the best one for you! One no longer needs to learn that their favourite healthy cereal is the primary cause for their heart condition due to the presence of hidden trans fats and ingredients that are banned in other countries! The best options for you and your family, based on your taste and price preferences will instantaneously flash on your phone or wearable requiring only a swipe to order. No more trying to read labels, no more pick the celebrity not the product, no more playing Russian Roulette with your lunch order, no more not knowing whether what you eat is actually right for you! Welcome to a world where the entire ecosystem revolves upon helping you effortlessly make better choices, not 200+ daily decisions! It is your life and health after all. Welcome to Personalised Food Intelligence.

CXO OUTLOOK August 2021

FOODIE’S IDEAS

Tech Innovations in Cloud Kitchen Madhav Kasturia, Founder and CEO, ZFW

Madhav Kasturia is the Founder and CEO of ZFW. He started ZFW back in 2015 and through multiple pivots over the last six years, has grown ZFW’ s portfolio to include both B2C & B2B services and has been successful in positioning it as India’ s fastest growing expansion Platform. Madhav did his graduation from Hindu College, Delhi University, New Delhi alongside scaling his delivery kitchens & graduated in 2018, & that’ s when he decided to scale up in the cloud kitchen space. A start-up and tech enthusiast, he loves understanding customer behaviour across the web and mobile. His specialities include GTM Strategy, scaling up a venture from scratch, understanding and interpreting online customer behaviour, launching new product lines, and forging mutually beneficial alliances across networks. He also believes in giving back to the start-up community and is a mentor at multiple start-ups.

CXO OUTLOOK August 2021

echnology shifts coupled with changing consumer habits & rising disposal incomes are paving the way for disruption in the F&B space- just like in other industries. Cloud kitchens are one such emerging segment gaining popularity & even more so since the COVID pandemic. This trend will only get more profound as Gen Z's (who've grown up with the internet & smartphones) enter the marketplace (sorry boomers!). Chances are that you've come across terms such as ghost kitchens, dark kitchens, or virtual kitchens before. Cloud kitchens are deliveryonly restaurants where the preparation + packaging of food takes place while operating at a fraction of the costs incurred by traditional restaurant establishments (rentals, decor, equipment, & wait staff can be saved while operating virtual cloud kitchen brands). Simply put, a cloud kitchen is a 4-walled kitchen structure from where food is dispatched to customers who're ordering from their offices or homes. According to a well-known industry report, cloud kitchens are expected to grow to a $4 billion industry in India by 2024, up from $1 billion in 2021. With no physical location, cloud kitchens don’t benefit from walk-in traffic or footfall, but you are competing in a crowded world of digital restaurants. However, if you focus your efforts on serving & delighting customers, you will reap the benefits thanks to customer loyalty, social proof (good reviews) & word-of-mouth referrals. Around 55% of new restaurants come tumbling down within year 1, while almost 77% shut down before they reach year 5. So, if technology can help empower our industry with a much-needed boost, I will count that as a massive win. Unlike traditional F&B concepts, the new kids on the block namely foodtech & cloud kitchens are highly scalable, profitable, & asset light. Hence, they have increasingly become VC favorites with investments & ROIs

Around 55% of new restaurants come tumbling down within year 1, while almost 77% shut down before they reach year 5

CXO OUTLOOK August 2021

reaching record highs in 2021. There are distinct approaches to running a cloud kitchen, ranging from an opportunistic delivery-only brand to an existing legacy restaurant or even a purpose-built commissary kitchen housing multiple brands & concept. Consumers place their orders via food delivery aggregators such as Zomato, Swiggy, or direct-ordering platforms such as DotPe, Thrive, etc. These orders are then accepted on POS Systems such as Posify, Posist, & Limetray. In the end, direct orders are fulfilled via third-party logistics (3PL) providers such as WeFast, Dunzo, Pidge & others. The technology play doesn't end here: platforms like ZFW help food & consumer brands scale rapidly using their network of tech-driven

CXO OUTLOOK August 2021

kitchens & fulfillment centers across different geographies. It provides brands with an opportunity to stay ahead of the curve & focus on product + demand + stellar guest experiences. Technology is the primary growth driver behind food delivery & hyperlocal fulfillment: leveraging data to aid the growth of F&B & D2C brands in a sustainable & scalable format is a win-win for all stakeholders. Similar to a traditional restaurant play, the most critical KPI here is a green P&L! “Lookup in the sky! Your latte’s here.” Delivering food & goods via drones seems like something straight from a sci-fi flick, but many tech companies are now working towards making that a reality. 2020 saw them conduct drone trials with the hope to go live by 2022. While there

Ultimately, successful food delivery operations are all about efficiency & involve solving for 2 sides

are major regulatory hurdles (DGCA) to overcomedrones will be a boon for the food delivery space given rapid delivery times + reduction in road congestion, pollution, & costs. Drones are starting to take flight around the world & such evolutions are helping the industry take flight. Ultimately, successful food delivery operations are all about efficiency & involve solving for 2 sides. On the Kitchen Side– implementing technology that helps a single kitchen operator manage multiple brands (across delivery platforms) would optimize workforce efficiency & food wastage. On the Fulfillment Side– if several brands are concentrated in one location with the right technology to enable effective queuing & batching of orders, this would allow 3PL providers to batch multiple orders from one pick-up location & deliver seamlessly.

This will not only boost last-mile efficiency but ensure customers receive the highest-quality product in the fastest time. Ultimately, the delivery kitchens that can consistently deliver high-quality, on-brand products & experiences will emerge as winners in this increasingly competitive marketplace. As the Indian foodtech landscape matures, additional tools have emerged to aggregate various delivery platforms into 1 portal- while achieving more efficient resource management, kitchen workflows, delivery fulfillment, & attractive unit economics. Going forward, trends such as kitchen automation, drone delivery, the gig economy, & rising urban real estate costs will continue to give cloud kitchens the edge by accelerating cost-savings & margins. When it comes to innovation in this space, we have seen only the tip of the iceberg yet!

CXO OUTLOOK August 2021

EXPERT OPINION

Why has the Demand for Food Processing Equipment Increased Significantly in Developing Economies? Pankaj Singh, General Manager- Business Development, Kanchan Metals

CXO OUTLOOK August 2021

ccording to a report by Transparency Market Research, the food processing equipment market will be worth 80 bn $ by 2027, growing at a CAGR of 5% from 2019 to 2027. The food processing equipment driving the growth of the market include fermenters, cleaning systems, sorters & graders, homogenizers, mixers & blenders, cooling & heating systems, size reduction equipment, size enlargement equipment etc.

At Kanchan Metals, Mr. Pankaj Singh is responsible for expanding the business reach across the country and eyeing on export markets. Having close to 14 years of experience majorly in the food processing industry. His core expertise falls under various food processing sectors mainly offering packaged foods, while working his ultimate objective is always to offer a solution to a manufacturer by understanding their product process requirements and associated challenges.

Indian Snack Manufacturing and Food Processing Industry Invest India cites that India’s food processing sector is one of the largest in the world. Its output will likely reach $ 535 bn by 2025-26. Various government initiatives like Make in India, infrastructure spends to boost the rural economy etc. have put the food processing segment on a high growth trajectory. It is a result of these actions that India’s food sector attracted $ 4.18 Bn in FDI between April 2014-March 2020. Let’s get a detailed overview of why the food processing sector in India is growing rapidly. The Key Growth Driver of the Sector in India The Indian snacks market is expected to be worth more than INR 1 billion by 2024, as per the Research and Markets report (2018-24). The rising urbanisation, everincreasing number of working professionals, lifestyle changes, affordability, and local availability of snacks have all together contributed to the demand for Indian snacks which has ultimately resulted in the significantly high demand for food processing equipment. With abundant raw material, India is a large sourcing hub for agriculture products and also has a huge domestic market. The increasing size of the food processing market can be attributed to changes in the gender composition of the workforce, rising disposable income, changing consumption patterns due to urbanization, and growing consumption rates. Additionally, over two-thirds of India’s population is young with rising income levels which also creates a huge market for snacks. With fast-paced lifestyles and an increase in urban working culture, people have limited time in hand for cooking and meal preparation. Thus, convenience foods such as snacks have gained tremendous popularity, particularly in urban areas. Owing to the

CXO OUTLOOK August 2021

● Greater integration with the global economy and proximity to key export destinations open up numerous export opportunities for the developing economies which ultimately results in increased demand for food processing equipment.

With abundant raw material, India is a large sourcing hub for agriculture products and also has a huge domestic market

emerging demand, there is an increasing number of organized food retail outlets that offer a wide range of snacks to consumers, usually with attractive discounts. Following are the major factors playing a role in the growth of the food processing sector in developing economies like India: ● Developing economies have supply side advantages, for example, in India, there is a high level of agricultural production – a wide variety of crops, inland water bodies, a large livestock base, and a long coastline that contributes to increased marine production. ● There is a strong domestic demand due to fast evolving lifestyle and food habits. ● The majority of developing economies have proactive government policies and constant support.

CXO OUTLOOK August 2021

Technology Leading the Transformation of Equipment Manufacturing Industry As the world of technology keeps on advancing and innovating, equipment manufacturers are leveraging exciting new opportunities that allow them to redefine their operations and processes. From advanced robotics to big data analytics and computer vision in warehouses, manufacturing technologies are huge in number and bringing unprecedented transformation. The vast choice often makes it difficult for manufacturers to decide which types of technologies are worth investing in and which can wait. Some of the sophisticated technologies being leveraged by equipment manufacturers include 3D printing, Internet of Things (IoT), Artificial Intelligence etc. to reduce human intervention, improve operations’ speed and minimise errors. For example, in industrial environments, IoT is being increasingly used for applications in automotive plants, industrial factories, pharmaceutical plants, electronics, F&B supply chains as well as in oil refineries. Some of the possibilities being created by IoT in the manufacturing industry are optimization of processes, greater flexibility of production processes, increasing degree of automation, more accurate predictions of machine condition and more efficient maintenance etc. Technological advancements have had various transformative effects on businesses. Some of these are compiling massive amounts of data for intelligent machine learning, usage of the internet by various objects to communicate etc. Such advancements have improved manufacturing efficiencies and are well-received in the sector. As we keep advancing into a new phase of industrial developments, we need to remember that the emerging industry is all about connecting humans and machines. The ongoing pandemic only accelerates the fusion. Growing consumer demand for snacks, processed food products and clean label due to rising health concerns is offering great opportunities for food processing equipment manufacturers to expand their product portfolio, and generate revenue. As a result, the food processing industry in developing economies is opening itself up to social and technological reinvention. The future undoubtedly looks promising for the growth of the industry.

CXO OUTLOOK August 2021

LEADER’S INSIGHTS

HOW IS TECHNOLOGY HELPING RESTAURANTS TO OWN THEIR DATA & SERVE CUSTOMERS BETTER? Rajesh Subramanian, Founder, Ghoshak

Rajesh Kumar Subramanium is an ex-Amazon and ex-SAP product and software developer with a rich experience of 15 years in the industry. From the SaaS capital of India, Ghoshak helps SMBs conduct their day-to-day operations like creating an online store, building a website, generating e-bills, sales reports, customer data, inventory management, and more. Founded in September 2020 by Rajesh Kumar Subramanium, the retail-SaaS company raised Rs 1.2 crore in seed funding from his friends and family members last month. While working at the enterprise software company SAP, Rajesh realised he wanted to start a similar platform for small enterprises. He, however, went to work at Amazon for about 10 years before deciding to start Ghoshak amidst the pandemic. With the world moving fast, Rajesh was concerned about customers gradually moving online, but SMB owners still using “pen and paper” for their day-to-day operations.

echnology is intended to make lives and businesses simpler. The restaurant is one industry that has evolved and adopted the technology well over the years. Unfortunately, the industry has been the worst hit and needs effective tech solutions to run the operations smoothly while abiding by the new norms. From taking online

CXO OUTLOOK August 2021

reservations, booking tables, online payment & feedback to getting insights into the customer, technology is helping the restaurant industry to sail through the times. During the Pandemic, restaurants have been relying upon aggregators to fulfill their delivery needs. This leads to payment of up to 40% commissions to them.

TO KEEP THE CUSTOMERS COMING BACK, RESTAURANTS CAN RUN SOME LOYALTY PROGRAMS ON A LONGTERM BASIS TO TURN FIRST-TIME CUSTOMERS INTO RETURNING CUSTOMERS

CXO OUTLOOK August 2021

An end-to-end technology solution or a platform like Ghoshak can aid restaurants in earning revenue even during difficult times and own their data. Many restaurants still stick to the age-old pen and paper method to conduct their operations. Here are few ways in which technology is helping the hospitality industry upscale its business operations: Online Table Reservation and Bookings: Now that the lockdown has been lifted in many cities, restaurants have reopened their doors to welcome the customers. A readily available platform that enables them to take online reservations and book tables can help them maintain social distancing norms and run their business. It also helps with queue-management Digital Menu: Customers dining out are now wary of and want to avoid high touchpoints like a physical menu. Also, to reduce the waittime, customers can directly place the order from the digital menu. This way, both parties are safe, and orders are placed and served on time.

RESTAURANTS HAVE BEEN SLOW TO ADOPT TECHNOLOGY AND INNOVATION. THE PANDEMIC CHANGED THAT AND FORCED FOOD AND BEVERAGE OUTLETS TO LOOK BEYOND THE TRADITIONAL

CXO OUTLOOK August 2021

Direct Offers and Discounts: Strong customer relationships are built with regular communication. For example, restaurants can directly offer the current discounts they are running with their customers, get direct walk-ins, and increase order volume. Offering direct discounts also helps connect with the customers during festivals and on special occasions like birthdays and anniversaries. Loyalty Programs: One can target the customers, but to retarget them sometimes is the struggle that restaurants face. To keep the customers

coming back, restaurants can run some loyalty programs on a long-term basis to turn first-time customers into returning customers. Restaurants have complete control of what kind of offers they want to share. Such mobile-based restaurant tech tools can be used to enhance a restaurant’s existing customer experience and enhance the overall dining experience more engaging and valuable to the customer. The cherry on the cake is that such a technology is now available at a very pocket-friendly price. Ghoshak comes with a smooth UI/UX, which the restaurants and the customers can easily access, and it costs less than the cost of having a monthly tea. Restaurants have been slow to adopt technology and innovation. The Pandemic changed that and forced food and beverage outlets to look beyond the traditional. Apart from the above-listed mainstream technology, many other solutions are leading the way and are the need of the hour. Online Ordering System or Own Website: Many restaurants still face forced limitations, strict guidelines, online food orders, and contactless home-delivery have acted as the industry's saviour and hero. However, delivery and pick-up services are here to stay as customers grow accustomed to getting the food at their leisure. Therefore, it is time to become their boss and have their website to receive direct orders. This will provide them with the complete ownership of their customer data which can be used to retarget their customers. Ghoshak empowers restaurants to own their website in just three simple steps: Register your domain, choose your design & content and make your website live. Point of Sales (POS) System: Receiving multiple orders from various sources is difficult to handle for any restaurant.

Getting direct orders through your own website, social media and even through aggregators can be managed from one single dashboard. The restaurant technology is constantly evolving, and there are now cloud-based POS systems available that can be accessed from anywhere and from any device. POS is like the digital central kitchen for any restaurant. Forget about going and taking orders through pen and paper. With the POS system, kitchen staff access the Kitchen Display System (KDS), which displays the order directly. One can also access real-time billing and reports through the POS system. Inventory Management System/ Supply Chain Management: Keeping up with everyday stock and inventory can be a tedious task for restaurant staff to manage. A new-age inventory management system updates the restaurant about the items that are short and are about to get over. Many new systems also keep track of the precise ingredients to prepare a dish so that there is no wastage. Additionally, such a system also helps check any possible theft of the items, thus, keeping a close track of things. Many multi-outlet restaurants can use inventory management systems to keep the inventory stocked up and maintain uniformity across the outlets. Like every coin has two sides, the Pandemic has accelerated the adoption of technology by the restaurant industry. Restaurant operations can be easily streamlined with the help of technology to bolster the overall service and the experience and keep the revenue flowing. A platform like Ghoshak comes with multifeatures that enable many small and medium sized eateries in India to own their website thus, taking charge of their data to serve them better.

CXO OUTLOOK August 2021

EXPERT OPINION

Innovations in the

Food Tech Industry Sanjay Jain, Director, Elanpro

CXO OUTLOOK August 2021

Sanjay Jain, EVP and Director at Elanpro (Elan Professional Appliances Pvt. Ltd.) has been working in the commercial refrigeration industry for the past 25 years. Sanjay founded Elanpro along with Ranjan Jain and Shashank Joshi and positioned the company amongst top five commercial refrigeration companies in India. Elanpro is one of the largest names for commercial refrigeration in Hospitality, Retail, Beverage and Pharmaceutical Industries.

weet, savory, spice and everything nice! Food tech industry never runs short on delicious delights. It is one of the booming industries in India and has significant contribution towards economic growth. With the advent of innovation in technology, the food tech industry has undergone a massive change owing to the increase in internet penetration and shift towards the virtual world. The technological advancements in the business has opened doors for small and medium players to increase their revenues by developing and offering products and services that satisfy the evergrowing consumer demands. Industry experts often define Food Tech as ‘an emerging sector with huge potential for technology that can be leveraged to create efficiency and sustainability in designing, producing, choosing, delivering and enjoying food.” Leveraging the same idea, Indian food tech industry has seen a positive movement towards sustainable and personalized food choices. Startups and existing brands are moving to integrate waste reduction practices whereas food producers are dwelling themselves with robotic services and food management tools. With these means, the relationship between a food company/restaurant and its customers is no longer limited by the bounds of geography or even by the clock hours. Indian Food Tech revolution started as soon as the food ordering apps entered the market bringing in the customers closer to their favorite food joints no matter the distance. Digital booking, and delivery apps gave the sector a much-needed makeover. The outburst of food-related startups in India helped shift the focus onto the technology that assists and supports food business operations making them more perceptive towards exploring new possibilities. Why Food-Tech is integral, you ask? As per a report by Research and Markets, the Indian food-tech sector is expanding at a compound annual growth rate (CAGR) of 39% during the 2021 – 2025 period and is expected to reach INR 1,868.19 bn by 2025. With this much amount of investment and income flow coming in, it is understandable that the companies are heavily banking upon the tech wave in this flavorful industry. In the recent years, experts’ in food tech industry have focused on integrating technologies such as big

CXO OUTLOOK August 2021

data or the internet of Things (IoT) in the business flow. These innovations have also facilitated the production of more food in a shorter duration of time making the product more affordable and of higher quality. Additionally, while catering to the growing demands of healthier and sustainable food options, food tech also lists out a wide range of benefits: ● Enhanced customer experience ● Safer production environment ● Accurate demand and supply forecast ● Reduced food wastage ● More food/cuisine menu options ● Reduced risk of equipment mishandling/breakage What’s new in the food tech block? Innovation never stops and neither does the range of possibilities in this industry. With every new recipe comes a new and inventive way of presenting it to the consumer. For an industry that never ceases to surprise, 2021 brought with itself exciting trends that have been winning hearts and soaring up the investments for the better part of the year.

Cloud Kitchen/Ghost Kitchens: The ongoing global pandemic has shifted the focus for many dine-ins to a more sustainable business model. With reduced restaurant footfall, CRISIL estimates that the recovery of the 1.5 trillion rupees ($20 billion) sector will take at least a year after lockdown is lifted. Thus the need for a business plan that enables earnings while avoiding the risk of contracting the virus is more than ever. Ideating on the same, Cloud Kitchens also known as Ghost or Dark Kitchen is one of the most sort after in the food tech industry. Cloud kitchen are delivery only outlets with no dine-in options for the customers, they rely solely on online orders. To many this emerging trend idea may not seem profitable but on the contrary, ghost kitchens enable even a small time player to open up their dream restaurant with minimum entry cost, low capital expenditure and lower rents. Allowing one entrepreneur to work with different brands at the same time from the existing infrastructure, the cost benefits only adds up the list of positives for this business model. Additionally, the model also allows the food enthusiast to expand their business across geographies with minimum cost involved resulting in lower risks for the investors. Designed for speed,

CXO OUTLOOK August 2021

quality and scale, cloud kitchens are becoming a fitting space for even small start up to potentially compete the biggest players in the industry. Artificial Intelligence & IoT: One of the crucial developments is the inclusion of AI and IoT based solutions in the food tech industry. The upgrade can be and is used at multiple points (from farm to fork) enabling real-time monitoring of consumer behavior and digital food management. In storage units and cold supply chains, AI & IoT is used for refrigeration solutions that helps in monitoring and controlling the accurate temperature to store food. Additionally, the advancements in blockchain and real-time food monitoring using the IoT devices provides food transparency to customers and brands. The end-to-end traceability increases trust between food producers and consumers, positively impacting brand credibility while developing cost-effective monitoring solutions. Restaurant digitization further optimizes customer behavior analysis and demand forecasting using real-time data acquisition on food products and consumers. This leads to a better understanding of the market requirements and reducing losses while managing surplus food. Not to forget the same feature also creates resourceful ordering, and demand-equitable pricing for restaurants. Food waste reduction is necessary to minimize environmental footprint and save cost which is now convenient with the use of AI based technology or devices. Conclusion: The food industry is no longer limited to the conventional methods of serving its customers. The newer demands include transparency and safer food (producing, making, packaging and disposing) environment, healthier meal options and spoilt for choices attitude. It’s equally important not to overlook the fact that climate change and growing awareness about the environmental concerns are one of the driving factors of these inventions in the food tech industry. Companies and customers are not only looking for well-balanced menus but are also shifting towards decreased carbon footprint. Brands today cannot afford to ignore the technological boost as they are aiding businesses to improve efficiency, cut down on spending, and boost customer experience.

CXO OUTLOOK August 2021

FOODIE’S IDEAS

How has the pandemic promoted new technologies in the FoodTech Industry? Vivek Kapoor, Co- Founder, Dineout

A renowned entrepreneur with strong business acumen, Vivek is the co-founder of India's largest table reservation platform. With over 12 years of experience, he has positioned Dineout as a premier platform in India and expanded its reach to international markets. Currently, he is also focusing on dineout and its B2B product inresto's expansion overseas. In 2012, Vivek co-founded dineout with his friends Ankit, Sahil & Nikhil and established it as a leading table reservation platform in India. After a successful round of angel investment, Dineout was acquired by Times Internet Limited in 2014. He loves watching movies, especially political dramas, and has a knack for penning down some deep-spirited verses.

CXO OUTLOOK August 2021

ncertainties are a part of life and any business. One cannot control what comes on the way but can strategically deal with them. It is no news that the restaurant industry was severely hit in the gut by the pandemic. One‌ ‌of‌ ‌the‌ ‌largest‌ ‌in‌ ‌the‌ ‌service‌ ‌sector,‌ ‌India’s‌ ‌food‌ ‌services‌ ‌industry‌ ‌contributes‌ ‌to around‌ ‌3%‌ ‌of its‌ ‌GDP‌ ‌and‌ ‌is‌ ‌the ‌largest‌ employer‌ with‌ ‌over‌ ‌73‌ ‌lakh ‌people‌ ‌on‌ ‌its‌ ‌payrolls.‌ An industry that thrives on social gatherings had to close doors to ensure social distancing for the health and safety of its users. As the economy and discretionary spending were impacted daily, restaurants had been ordered shut during the nationwide lockdown. Therefore, the direct implications on the F&B industry were prominent. The COVID 19 pandemic had put the FoodTech industry to the test like never before. This time around, FoodTech was not just about bettering the operations of the foodservice industry but was more about running the basic operations to earn the daily bread & butter. As a result, technology that was once ‘good-to-have has now become a must-have.’ Direct Ordering became the Holy Grail for Restaurant Businesses During the pandemic, many businesses inevitably had to cut down on their overhead expenses. A significant chunk of these expenses was going into aggregator commissions. With restaurants relying solely on the delivery & takeaway model during the second wave, close to 2025% is levied as a commission fee by the aggregators. inresto helped restaurants own their website to generate direct orders with a seamless UI & UX based

Even post the lockdown, restaurants ensure the use of tech products like QR-based digital menu, digital valet, digital feedback, and payment

CXO OUTLOOK August 2021

microsite that allows restaurateurs to modify their menu at any point in time. We are constantly working towards upgrading our technology and products, which are userfriendly and fit their bill. Supplementing the demand for own ordering platforms, the need and adoption for innovative POS systems which can facilitate multiple orders from one platform also started growing.

The world now prefers the contactless way of functioning, where physical contact is being pushed down to as minimal as possible, and it’s only fair as the easiest way to stop the virus spread is by reducing contact

CXO OUTLOOK August 2021

Strengthening the industry of Online Ordering As per Statista, the number of users of online food ordering increased from 539 million in 2019 to 704.7 million in 2020. Customers shifted towards online ordering around the third quarter of 2020. Having meals delivered to their doorsteps via trusted, safe, and hygienic sources was the only ask. The National Restaurant Association of India (NRAI) has also advised restaurants to own their website to facilitate delivery & takeaway orders instead of relying on aggregators and paying hefty commissions. At this point, channels like inresto online order started to fill the gap between demand. These efforts by the platform proved to be a comfortable and reliable option for the industry and the customers. Customer Safety is now an added layer of dining experience According to research, online ordering volumes have grown month-on-month and the market has reached a value of US$ 4.35 Billion in 2020. However, this growth also translates to the fact that online ordering is not a mere convenience anymore, but a necessity. Due to COVID-19, the main focus is customer safety and ensuring food hygiene. Using tech platforms has become an industry norm to check and communicate the staff and riders’ temperature. This reassures the end customer that the food is being prepared and handled by individuals who are well in health.

Even post the lockdown, restaurants ensure the use of tech products like QR-based digital menu, digital valet, digital feedback, and payment. A 360-degree restaurant tech solution provider like inresto is helping restaurants with these seamless and easyto-use products. Boon in Disguise: Digital Marketing to attract more customers The food service industry has also realized the significance of digital marketing for driving the right amount of traffic to their platforms. More traffic translates to more orders which ultimately leads to more revenue for the restaurant businesses. Therefore, a robust marketing strategy is vital to maintaining and increasing the order volume, including professional photo and video shoots, paid marketing, and expert SEM. inresto marketing solutions take care of this aspect of business operations and ensure that the right traffic is driven to the platforms and a significant boost in customer repeat rate. Technology that is shaping the industry The world now prefers the contactless way of functioning, where physical contact is being pushed down to as minimal as possible, and it’s only fair as the easiest way to stop the virus spread is by reducing contact. Therefore, making relevant changes to each step of the dining experience was only inevitable. As a result, QR-based ordering, digital payments, and touch-less delivery have now become sacrosanct in the diner’s journey. ● QR-based ordering: QR code-based digital ordering platforms have become the new norm and are indeed making it more convenient for the customer and the staff; by reducing contact and hassle-free automation while reducing human errors.

● Contactless/Touchless delivery: The customers ensure a contactless delivery for their food by just tapping on a button on the ordering platform that says- <Make it a contactless delivery>. This gives the delivery guy a specific instruction to safely leave the order at the doorstep without exchanging a handcontact with the customer. ● Digital payments: Thanks to the technological evolution in the last decade, people have started using digital payment platforms during transactions. Now with the pandemic and the need to avoid physical contact, the usage of digital payment platforms has only gotten sacrosanct and more common. On top of that, the rise in online ordering platforms (both delivery and dine-in) has given more space to contactless payment platforms. Customers and businesses are both relying more on contactless payment methods. To make restaurants a safe harbour for diners, inresto launched India’s first Contactless Dining suite for restaurants with digital menus, QR-based ordering, digital payment, feedback & more. Through our B2B product inresto, we helped 12,000+ restaurants go contactless. We also extended the Contactless Suite to Malls, Hotels, Airports, Alcohol stores, Theatres, among others. The post-pandemic world is predominantly technology-driven, and technology has only helped the restaurant industry continue its operations while instilling that trust in the customers. The food industry is constantly evolving and can never go out of vogue. The main essence of the industry is to offer a safe & exciting experience to the customers, and it will continue to do so in the future as well.

CXO OUTLOOK August 2021

LEADER’S INSIGHTS

IMPACT OF FOOD DELIVERY BUSINESS ON THE RESTAURANT INDUSTRY Dheeraj Gupta, Managing Director, Jumboking

Dheeraj Gupta is an Indian business owner and fitness enthusiast. He is the founder and MD of JUMBOKING Foods, India's largest homegrown brand of vegetarian burgers. He has played a key role in the large-scale acceptance of franchising as a framework for doing business for the QSR industry. He believes in establishing strong and symbiotic partnership with a cohort of numerous motivated individual entrepreneurs who want to benefit from the 10X advantages that a well-developed franchising system provides. His belief that such a model potentially creates a very inclusive and resilient growth engine, if coupled with a cohesive focused and disciplined team of professionals, have made him a young business icon of 21st century India.

he win-win equation between digital platforms and QSRs is yet to be explored fully in India. The demand for delivery is driven by a ‘consumer need’- that of convenience. Hence, it is based on ‘pull’ not push. Logically speaking- brands and delivery partners should both stand to benefit, provided they are able to craft a three-way win-winwin, in which the end consumer is the third win.

CXO OUTLOOK August 2021

But here is where I’m seeing the disconnect When the delivery partner focuses on deep discounting at the expense of brands, the brands will retaliate. Any and all money spent to fund discounting is highly myopic, it will only lead to short term growth as was seen in the case of very good delivery brands like Food Panda, Uber Eats etc which could not sustain.

EXTRA-WIDE MENUS THAT ADD LAYERS TO THE COST OF OPERATIONS, OFFSET BY ‘BUY ONE GET ONE FREE’ OFFERS ARE NOT THE WAY FORWARD

CXO OUTLOOK August 2021

The AOV (average order values) in India are very low. Consequently, the % commission that the online partners charge seems disproportionately high. This is a waiting game, and this equation will stabilise over the next decade as the AOV’s increase. Brands are also cognisant that this problem does not exist in the western countries because each of their orders value is high. Let me outline a vision that serves the brands and the delivery partners.

Here's what the success of the Zomato IPO means for brands 1. QSRs in India have been bullish about replicating the kind of growth that the industry saw during the 1960s and 70s in the west. The time has come. Indians are choosing brands, a natural outcome of economic progress. There will be QSRs that are built around specialisations- such as Biryani, North Indian, South Indian, chaats etc. The success of the Zomato IPO opens up a blue ocean for brands in various categories to reach consumers and become available at the click of a button. 2. These brands will invest in multiple areas- such as product development, system creation, marketing etc to establish category leadership. The more focused players will win. Extra-wide menus that add layers to the cost of operations, offset by ‘buy one get one free’ offers are not the way forward. Neither is trying to set up their own delivery- because in the long run it's the specialists who will win. Brands must start valuing themselves through a sensible shift to margin protection to remain sustainable. At the back end, efficiency improvements & cost cutting in one form or the other, are now the dominant themes. 3. Swiggy and Zomato both provide a service to the restaurants. They will

CXO OUTLOOK August 2021

THE INVESTOR FRATERNITY HAS TAKEN NOTE THAT CONVENIENCE WILL CONTINUE TO BE AN IMPORTANT ELEMENT OF THE CONSUMER’S INTERACTIONS WITH RESTAURANTS

welcome the creation of large brands with a national footprint and recall value- that customers can order from and they will deliver to. The creation of a market benefits the entire ecosystem of customers, brands and delivery partners . On the other hand, one must acknowledge that delivery-based companies have focussed and become specialists. Right now, the market is a two- horse race between Swiggy and Zomato, but the customers are often not clear about markups and fees. TechCrunch captured this beautifully, “while consumers have signed on to pay a premium for convenience, the food delivery ecosystem suffers from a lack of differentiation, compounded by an opaque and confusing web of markups and fees. Consumers expect to pay a premium for the convenience of the service, but it turns out there can be a very significant difference between both the price you would pay when ordering directly from a restaurant, as well as what each of the delivery apps charge for the exact same item.” Here’s the gap that delivery companies need to plug1. The race of the future is data- perhaps the biggest ask of brands is that shared customer data will help brands re-market better and help them craft better value propositions for their customers. Value travels farther than discounts. Online partners currently don’t share any data which is a pain point for brands. 2. Getting millions of meals delivered quickly, accurately and still warm from restaurants to consumers each day is no easy feat. Continually improving the core logistics associated with this undertaking requires massive funding and ongoing investment. Further, building the ecosystems, supply chains and consumer confidence will enable everyone to ‘grow’ the market. This is

something brands will appreciate greatly. Incremental sales are the magic potion for every restaurant- not sales substitution- by consumers who have transitioned from instore to online. How can restaurants and online delivery-based companies work together to increase revenue? 3. They are already helping innumerable brands reach their audiences; they must enable every restaurant to add a delivery charge. Their communication to customers must highlight the convenience aspect so that they are willing to shell out a little extra. The investor fraternity has taken note that convenience will continue to be an important element of the consumer’s interactions with restaurants. Yet, human beings are social by nature. The culture to ‘celebrate with food’ is ingrained into our tradition. The stickiness of new habits is yet to be tested- and while some might be here to stay, many community and friendship based behavioural patterns will return back to normal. As the battle for market share and profitability heats up in the food space, consumers have demonstrated they are willing to accept the implicit trade-off of paying a premium for convenience. But as this industry pushes forward toward profitability and sustainable operations, we believe that the companies that embrace transparency and innovate on the core product and service — not on pricing markups and services fees — will emerge as the winners in the new food economy. Likewise, it's the restaurants that embrace their own uniqueness and offer value that will thrive. The next decade we see the twain settle into a symbiotic relationship where brands will value the delivery part of the business as adding to their profitability and the online partners will value the brands once they realise that they need brands as much as brands need them.

CXO OUTLOOK August 2021

FOODIE’S IDEAS

How Technology is Helping Small Food Businesses Get off The Ground Pooja Dhingra, CEO, Le 15 Patisserie

Pooja Dhingra is the founder of the Le15 chain of patisseries and cafes, which she founded in 2010. She is a graduate of hospitality from Cesar Ritz Colleges, Switzerland and trained at Le Cordon Bleu, Paris, for a Patisserie Diploma. Featured on the Forbes '30 under 30' list both in India and Asia, Pooja has won acclaim from critics, the press, and her customers not just for her extraordinary skills as a pâtissier but also for her incredible entrepreneurial journey. She is an INK Fellow and hosts an extremely popular podcast called #NoSugarCoat. Pooja has published three books. The Big Book of Treats was her first and won second place at the Gourmand World Cookbook Award. Her other books are The Wholesome Kitchen and Can't Believe It's Eggless. Pooja lives and works in Mumbai.

CXO OUTLOOK August 2021

s an entrepreneur, I wear many hats. I’ve been running my own business - Le15 Patisserie for over 11 years now. When I started my business, at the age of 23 and just out of college, I didn’t know how to do a lot of businessrelated things or understand how they worked. I could create a 7 tier wedding cake in a jiffy but understanding how technology could help me grow my business - definitely didn’t come easy to me. Before Uber came to India, I vividly remember my Canadian friend telling me about Uber and how it worked. In my head, the operations of such a business seemed impossible! I just couldn’t comprehend what the technology was and how it functioned. When I finally started using Uber, I told myself that I would never write anything off because I didn’t understand it. Since then, it’s been an interesting journey. Running a food business has several different aspects. For many years I focused so much on just recipes and production that I was overwhelmed with the other functions of the business when we started Le 15. In recent years, a lot has changed for us. Most importantly, the pandemic pushed us towards adopting more tech. A big area of concern in the food industry is purchasing raw ingredients and material management. Last year, we started working with a company called Barometer that helps us with our backend operations and material management. Ankit Kasera, the Co-founder of Barometer believes that creating systems inside the organization makes a company more data reliant, ensuring there’s no material losses or any unaccounted losses. They’ve also made the technology easy and ensure we can use it efficiently (for the most part!). It’s easy to implement and most importantly helped us track data and get insights which helped us reduce our costs, have complete transparency in the supply chain, and also helped us become more profitable. I’ve always been the kind of person that loved shopping in person and shunned shopping online. I always needed to see, feel, and touch what I was going to buy. The last 18 months changed my behaviour significantly. Now, I shop online for

In recent years, a lot has changed for us. Most importantly, the pandemic pushed us towards adopting more tech

CXO OUTLOOK August 2021

everything. This allows me to view my business and our online store differently. Nine months ago, we launched our Shopify store and started pan India shipping of all our packaged products. I was amazed to see the response to our website and see the reach it had. I started working with TYS - a performance marketing company where Arjun, the Founder, helped us see the value of money spent in an online space vs the offline space. With Shopify, we can actually calculate our exact cost to conversion and everything is extremely trackable which makes it more effective. Technology enables us to change the look of our store depending on our consumer insights. Setting physical stores is time-consuming and capital intensive; however, online it’s easier, faster, and cheaper to make changes to a store and your business plan too. Technology also enables you to reach the right customer a lot faster. With data trackability on Shopify, we can check where our customers are coming from, how long they’re staying on pages, and what they’re buying amongst other things. Another company we worked closely with, over the last few months, is Equinox Labs. The CEO, Ashwin Bhadri, helps several food businesses scale with the help of food-tech - process-based technology - which helps food companies innovate better, increase their shelf life, reduce additives, change textures and more. For food entrepreneurs, an added benefit of using technology is that it helps us get faster and provide better insights that help to form progressive processes. This in turn helps with a healthier bottom line.

Suchita Salwan, Co-Founder of LBB, an online marketplace, believes that technology has made it easier for consumers to discover brands that would normally be difficult to find. LBB uses machine learning and customer data to understand what the millennial consumer wants and helps give them personalized experiences. With the help of technology, LBB makes brands - that don’t have a larger digital footprint - visible to a whole new database of consumers. Their Mithai shop was a great example of taking local stores online for the very first time, integrating it with delivery partners, thus making it accessible and convenient for their customers. The snack sampling boxes help people get an offline experience of being in a supermarket - from the comfort of their own homes. Delivery platforms like Swiggy and Zomato contribute to nearly 80% of Le15’s Mumbai revenue. Services like Dunzo and Wefast have also helped small food businesses with logistics. The last 18 months have been a time of unlearning and learning for me. As a pastry chef and business owner, I’ve discovered new avenues of doing business. I’ve also realised that it’s important to identify what your problems are and then find a tech solution that can help close those gaps. I’m excited for the future of food and technology and can’t wait to see how it’ll evolve over the next couple of years. I will continue to be a student and learn new things every day and adapt my business to fit the situation the world finds itself in!

Delivery platforms like Swiggy and Zomato contribute to nearly 80% of Le15’s Mumbai revenue

CXO OUTLOOK August 2021

EXPERT OPINION

What Food-Tech Looks Like in a Post-Covid World Raghav Gupta, Managing Director & Founder, Oateo Oats

CXO OUTLOOK August 2021

Alumnus of the University of Toronto with a degree in Finance and Economics, Mr. Raghav Gupta is a skilled professional in marketing, negotiation, budgeting, business planning and operations management. After almost a decade of work experience in finance, Mr. Gupta intrigued by the food sector, decided to try his hands and founded his oats brand in 2016 called Oateo.

e are living in volatile times. With a worldwide pandemic at hand, the past two years have shattered a lot of beliefs and forced us to look at alternative ways of living our lives. Even so, as the world reeled with the reality of lockdowns and self-quarantines, the food-tech space has bloomed. In a socially distanced environment, technology is helping stakeholders bridge gaps in everything from food production, consumption, distribution, thus creating sustainable food ecosystems. The pandemic might have exposed us to various vulnerabilities, but food-tech has been instrumental in responding to them through data-driven processes. Widely speaking, food-tech covers the use and workings of technology in the space of food and beverage, agriculture, restaurant, food-and-beverage delivery, and alcohol.

Food Tech in the D2C Space In India, Food-tech giants like Zomato saw exponential growth during the pandemic. The Indian food-tech unicorn’s revenue has doubled to over Rs 2604 Crores in the past months. The company reported that people were actively adapting to the new norms by using services provided by the food-tech space - food delivery in this instance. A California-based company ChowNow Inc co-founded by Chris Webb projected similar trends. The company registered an unprecedented growth over the span of 12 months growth that was essentially supposed to unfold over the next five-six years! Restaurants aside, stocking up on groceries also became digital almost as soon as the pandemic began. Weekly subscriptions of vegetables, dairy, and meat - or scrambling for slots in grocery delivery applications like Big Basket or Grofers replaced leisurely strolls in

CXO OUTLOOK August 2021

Even as various parts of the world have opened up, customers are cautious about stepping out, thus maintaining the upward trend in the use of e-marts and online grocery stores 78

local super-markets. Even as various parts of the world have opened up, customers are cautious about stepping out, thus maintaining the upward trend in the use of e-marts and online grocery stores. As per a survey conducted by Panasonic including 150 food services and food retail decision-makers in August 2021, technological adaptations in the food space seemed to be the need of the hour. It wasn’t surprising that 100% of the respondents agreed that COVID-19 has increased the urgency to adopt transformational technologies. It’s definitely a fascinating time to watch these technologies harness the power of Artificial-Intelligence, Machine Learning,

CXO OUTLOOK August 2021

and data while growing continually. Even before the pandemic, the use of tech in the food space was on the rise, the pandemic only cemented the idea that they were necessary. In the post-Covid world, the goal will be mainly to customize, streamline and personalize these technologies for business owners and customers alike to aid seamless experiences. More and more food businesses are including APIs, investing in data mining, and developing algorithms that will work towards creating value-adding experiences for the end customer. Be it in the form of loyalty programs, quality checks or waste management, technological solutions are helping to upgrade the way the entire food industry works.

Food Tech in Food Safety While most of the “action” was visibly unfolding in the D2C space, there has been a silent storm of operational changes brewing in the Food-tech space simultaneously. For food manufacturers across the globe, the pandemic accelerated the use and adaptation of technology. Especially for upcoming, smaller producers like us. The pandemic expedited the installation of sophisticated touch-free, 100% automated processing units in our facility. While this technology was definitely a part of our plan a few years down the line, the onset of Covid-19 convinced us to prepone the plan. Food manufacturers are now looking to safeguard staff and end consumers by making production and distribution safe and hygienic. More and more businesses are trying to control the variables involved where food production is concerned. Be it human exposure, packaging or even storage, manufacturers are now on an edge when it comes to food safety. The rise of vertical farming is a brilliant example of this. In a study recently it was discovered that up to 12.5% of vegetables and fruits and up to 95% of meat, fish, and dairy failed safety compliance measures in India. Abroad, there were similar cases for instance: Wendy’s discontinued salads in October 2020 due to a strain of a virus found in their lettuce. Hydroponic Vertical Farming eliminates a large chunk of soil production-based safety due to a highly controlled production environment. While the technology behind vertical farming was alien up until a few years ago, it has become very accessible now, especially post-Covid. Although when it comes to food safety, it’s agreed that 100% elimination of pathogens is not possible. However,

a combination of various intervention technologies known as the “hurdle approach” seems promising in eradicating common food-related impurities. There have been interesting technological developments in the foodsafety space like thermal processing, Ohmic heating, High-pressure processing, pulsed electric field, UV and Ionization techniques to improve the standards of food safety. Last but not the least, it’s impossible to address food safety without taking distribution into account, of which, E-Commerce has been an inseparable part during the pandemic. Even as the pandemic dulls in parts of the world, E-commerce continues to remain the single-most revolutionary technology at the consumer level. The kind of changes we have observed in the E-commerce space even before the pandemic has been exemplary, and the trend promises to have an upward growth here on. The Indian E-commerce is set to clock in a whopping $55 billion USD by the end of 2021 out of which about 30% of revenue is from food and grocery sales. Apart from safety, food tech in the e-commerce space has also seen a rise due to convenience. One could be lounging by the pool and ordering groceries and food staples from their favourite e-commerce sites and be ready for a dip by the time they are done! This is the convenience that is promised, and it definitely does not disappoint. In essence, this is what the future of Food tech looks like in a post-Covid world too. Where safety is combined with convenience to bring seamless experiences to both food manufacturers, customers, and everyone in between. And the road to this future looks interesting, to say the least.

CXO OUTLOOK August 2021

LEADER’S INSIGHTS

FROM DINING OUT TO DINING IN, AND NOW DINING ON THE CLOUD: THE INDIAN CUSTOMER TRANSFORMS Karan Singla, VP & Head of Operations, India BU, Rebel Foods

Karan Singla has over 12 years of work experience in the Indian automotive industry. His vast experience includes functions in new business development, business plan evaluation, financial assessment, and end-to-end operations management in the automotive sector. His passion for food-tech brought him Rebel Foods, where he started as Associate Vice President Expansion & Procurement and is presently the Head of Operations - India BU at Rebel Foods. A mechanical engineering graduate, from Punjab Engineering College, he has worked with Maruthi Suzuki, Volkswagen and Audi in his previous roles.

he ongoing digital era has given the food business a major push towards technological advancement. Who would have thought that dining out and cooking at home will be conveniently replaced by ordering at home with just a click of a button? Restaurants without a physical outlet for dining are more intuitively called Virtual restaurants because they do not exist on a physical plane of existence to go, sit and eat. That does not, however,

CXO OUTLOOK August 2021

stop delivery-only models of food technology outfits to pull massive clout on virtual platforms. For the past few years, the phenomenon of the ordering in, popularity among the urban working population that functions in odd hours, day in day out, has given rise to this side of the restaurant business. Case in point - in 2020 the Indian food delivery market grew by US$ 2.9 billion to US$ 4.35 billion, almost doubling from the previous year.

THE GREAT THING ABOUT STEALTH KITCHENS IS THAT THEY NOT ONLY ENSURE FLEXIBILITY BUT ALSO VERSATILITY WHEN IT COMES TO THEIR MENUS

CXO OUTLOOK August 2021

WINNING AT CUSTOMER LISTENING, CLOUD KITCHENS ARE ENSURING 100% CUSTOMER DELIGHT BY BRINGING IN THE POWER OF DATA SCIENCE, AI AND ROBOTICS IN THE FOOD BUSINESS 82

The great thing about stealth kitchens is that they not only ensure flexibility but also versatility when it comes to their menus. As a customer one can order from multiple stations and yet be assured that their food will reach them in time. This internet-only food delivery model is successful mainly for two reasons - seamless, straight at home delivery, and a customer experience tailored to the needs of the target audience delivered in comfort of home with experience the same as of a dining restaurant. The reasons for the success of cloud kitchens have been proven to ring especially true during the pandemic, when people have largely been stuck at home, and have been looking for small

CXO OUTLOOK August 2021

indulgences within their measures. Cloud kitchens grabbed this very opportunity and gave us a chance to properly indulge - with attractive packaging, tasty food, and an experience that offers instant gratification. Providing a quality and relishing experience right at the place of their dwelling, cloud kitchens were also able to house virtually any number of customers under one umbrella of services. Making new traditions Even during the pre-covid era, these internetonly brands with presence and free flowing social media conversations, captured the attention of the so-called millennials and the Gen Z. They fit

their on-the-go personalities perfectly. They also managed to capture their individualistic lifestyle and the concept of hustling through life at an uncatchable pace. But with the wheels of the social structure of the world coming to a screeching halt thanks to the pandemic, working and surviving from home became the accepted norm. Now, people find themselves even further removed from their families in a WFH setting as it has completely altered their timelines. Cloud kitchens however, leveraging feedback in real time, have been able to help their customers feel a semblance of normal living. Not only through their enjoyable food but also their far-reaching messaging that allows their customers to live vicariously on social media. Going beyond the confines of an urban audience, cloud kitchens are surely moving towards the ‘larger picture’ business perspective. They are now also focusing on bringing families together in both tier I and tier II cities, furthering their omnipresence. Expanding the customer base to a more community perspective, cloud kitchens are more capable of catering to diverse customers with just as diverse food requests. Not to mention, while respecting and adapting to the acceptable social health norms and government mandates. Grounded in data, innovation, and safety Winning at customer listening, cloud kitchens are ensuring 100% customer delight by bringing in the power of data science, AI and robotics in the food business. Big ghost kitchens brands typically operate on automated models, ensuring seamless supply chains to mitigate wastage and increase profitability. The model even manages to achieve up to 90% accuracy level to forecast demands using machine learning algorithms, thereby increasing preparedness to serve the customers dynamic demands. Some cloud kitchens even utilise AI & IoT-based equipment to prepare food and ensure quality control. While data and innovation are extremely crucial to ensure the successful running of cloud kitchens, it is equally important to assure

consumers of their safety during these troubled times. In order to ensure 100% food safety, cloud kitchens monitor the entire food journey - from farm to fork. For instance, we follow an automated process where at any point in time we know where the product or ingredient has been sourced from with details such as its temperature, expiry, etc. Our kitchens are required to carry over 200 quality checks for product and processing, thereby eliminating any risks, whatsoever, and ensuring the customer receives a fresh, hot, and most importantly, safe indulgence. The new-age food tech is about complete visibility in every step inside the kitchen with 100% transparency for companies. Ensuring consistency and quality through automated processes and reducing human dependency for product standardization along with real-time data will contribute toward better customer satisfaction and experiences. We use Robotic led smart fryers in our kitchens which detect the food shape and adjust the temperatures accordingly without depending on added interventions which result in consistency and assuring our customers that they will get their dish just the way they like it every single time. Another added focus to consistency is the packaging of food to retain the essence without any spillage or human error. We have learned this and created an extraordinary experience with our standout pizza brand, making it the first pizza brand in India to introduce octagonal shaped packaging to avoid any kind of movement in the box. Taking over the food market Through another year of impending uncertainty, cloud kitchens have proved that they can speak their customers’ language. Offering experiences of fine dining even at home, to the packaging’s credit, is on its way to becoming an inseparable part of retaining a competitive edge. Food establishments today are bound to become more and more convenient, personalised and as the future comes along, more tech driven than ever before. Cloud kitchens are only the beginning of a revolution that is poised to go a long, long way in the fooddelivery industry.

CXO OUTLOOK August 2021

FOODIE’S IDEAS

Are Cloud Kitchen's the Definitive Future? Chaitanya Manas, Founder, Os'Yummly

Chaitanya Manas is a Designated partner at Os’yummly. He holds a bachelor’ s degree from the National Institute of Fashion Technology. Having 4+ years of experience in Marketing and Merchandising, he is quite proactive in his approach. Obsessed with food, he led to the foundation of Os’yummly. Being creative minded, he thought of bringing something new and this is how the concept of Os’yummly- Food Studio cum Cloud Kitchen came into place.

CXO OUTLOOK August 2021

he food industry is changing. High startup costs, burdensome restaurant maintenance and now Covid-19 have all threatened the restaurant industry. With the Covid-19 lockdown, the restaurants are kept closed and would-be diners are at home, craving exotic flavors. This led to the booming of a takeaway meal or home delivery options in India. And, there is a huge possibility that the shift towards home-delivered food or takeaways is going to stay for long. Enter a new normal- Cloud Kitchen!!! Cloud Kitchen- a new normal, is a delivery-only restaurant with no physical space for dine-in. It relies only on online orders placed for home delivery or takeaways. Just an operational kitchen for the preparation of food that functions as a production unit. Cloud kitchens are likely to become profitable faster than restaurants because of their low cost and broad reach. But low expenses are not the only reason cloud kitchens are successful. Consumer preferences are changing, more than before they order-in rather than eat-out and these changing preferences are translating into brisk business for cloud kitchens. Opening a normal cloud kitchen could be monotonous and that’s why we thought of adding a new concept to it- Food Studio.

Cloud Kitchen's not only saves your time, money and hassle but also provides you with a convenient and low maintenance business plan

Cloud Kitchen vs Traditional Restaurant? Recent studies indicate that meal delivery orders increased by 150% from 2019 to 2021, and all thanks to the ongoing pandemic. More and more restaurant owners and food entrepreneurs are turning to cloud kitchens as an ideal business solution to capture the increase in food delivery demand. The idea of going out or cooking is becoming less appealing to millennials. Convenience is an important factor in driving their decisions. Food delivery brings with itself convenience, more options and even the growing number of healthy choices.

CXO OUTLOOK August 2021

Just like a brand studio, Food Studio is one such setup - with lighting, space, framing, colour and flexibility of space, just to please the eyes

CXO OUTLOOK August 2021

Cloud Kitchen's not only saves your time, money and hassle but also provides you with a convenient and low maintenance business plan. It eliminates the expenses like dining tables, restaurant space, expensive cutlery, electrical fixtures, etc. You need not worry about purchasing additional space for parking and serving staff. It allows food businesses to start up in a matter of days or weeks as they don’t require time to build a complete dine-in facility. Unlike traditional restaurants, cloud kitchens or food studios don’t require hosts, servers, and restaurant managers. You can work with limited staff as well. Keeping such pros in mind, we thought of starting our very own Cloud Kitchen but with a new twist. This led to the idea of creating a Food Studio, an entirely new concept, never thought of or seen. Wondering what is a ‘food studio’? Well, Food Studio is a new concept that is being brought to India for the very first time. Just like a brand studio, Food Studio is one such setup- with lighting, space, framing, colour and flexibility of space, just to please the eyes. The word studio is derived from a Latin word: studium, meaning to study or zeal. Food Studio is a creative space where we study, create and prepare meals for everyone. It is a professional kitchen setup. A Food Studio not only prepares delectable food for its customers but also generate social media content, like, blogs, recipe vlogs and pictures of its delicious food. The younger generation is more curious and aware of things around. They look for answers – where is their food coming from, how many calories it has, is it organic or not? Brands have to build and align their marketing for this scale of awareness. And, this is where our concept comes in. Food Studio, being a new concept in India will leave its customers mesmerized with its high-quality food, services, high-class chefs, lightings, contents and much more.

CXO OUTLOOK August 2021

EXPERT OPINION

Current Trends in the Processed Food Industry Dinesh Gupta, Director, Bry-Air

CXO OUTLOOK August 2021

T Mr. Dinesh Gupta, Director, Bry Air (Asia), a flagship company of the Pahwa Group, has over 3 decades of experience in Indoor Environment Control. He has specialized in application and engineering of environment control equipment like dehumidifiers, energy recovery system and airgineering systems. His papers on humidity control, energy recovery systems and IAQ have been published in various technical journals. Mr. Gupta has delivered many paper presentations and seminars on related subjects in India and overseas which have been published in many international technical journals. Mr. Gupta has been instrumental in many overseas initiatives for the Pahwa Group covering establishing of wholly owned subsidiaries in Malaysia, China, Brazil & Nigeria and own network of marketing offices in various key markets.

he food processing industry is one of the largest sectors in India in terms of production, growth, consumption, and export. The Indian food processing sector was valued at US$ 328 billion in 2018 and is expected to reach US$ 535 billion in 2025-26. It is expanding at a CAGR of 11% and the sector accounts for 32% of the total food industry. In the last few years there is a paradigm shift in consumer trends due to a global demand for food safety. In today’s context, more and more people are looking for food products that has nutrition, taste, convenience and value. The other trend which is significantly rising that a lot of unpackaged food will move to packaged food due to the lifestyle changes. With the shift, F&B industry lays a lot of focus on the quality, processing and packaging of the end product. Ensuring that the food item meets all the necessary standards and checks before exported. The focus on the overall quality has made majority of the industry players realize the importance of investing in sophisticated technologies. To manage the growth fuelled by consumer demand of packaged ready to eat, hassle-free food, these players are quickly adopting environment control solutions that are used at various steps of food production, until packaging and storage. However, it is not easy to maintain the packaged food. Most processed food like candies, jellies, gums, snack food, powder food, instant coffee, dried fruits and vegetables, spices, and other packaged foods have one thing in common, they are all hygroscopic and sensitive to high relative humidity. Moisture absorption during storage in food products not only alters their appearance but foods usually become less appetizing and appealing. The most common and prevalent issue food processing companies face is related to moisture. Inconsistent production, longer drying time, loss of key characteristics of the food product, etc. are some of the common problems faced by them thereby

CXO OUTLOOK August 2021

The focus on the overall quality has made majority of the industry players realize the importance of investing in sophisticated technologies

CXO OUTLOOK August 2021

leading to frequent downtime of production units, rejections and losses. Uncontrolled humidity plays a spoilsport in maintaining the taste, flavour and shelf life of these convenience foods. Therefore, it is imperative to address the threat of moisture during product processing, packaging and storage. In confectionery food items such as chocolates and sweets, moisture can affect the quality right from the point of storage to processing and storage of the finished chocolates. While processing if moisture absorption place, it leads to loss of gloss or lustre, sticky or grainy surface, sugar bloom and change in flavour. Similarly, coffee powder picks up moisture from the surrounding air which causes lumping. This not only obstructs the free flow of the coffee powder during processing and packing but also reduces the aroma and shelf life of the coffee. Micro-organism growth is also one of the main causes of potential food contamination. Moisture results in increased micro-organism growth. Microbial growth and dispersal can

be controlled if the surroundings and the food processing machinery and equipment inside the food processing plant and food processing facility are kept dry. But keeping a plant dry is not easy as water is an essential part of the product and process of food processing. Hence, desiccant dehumidifiers are the biggest saviour, and all major food industries are using dehumidification as the primary solution to deal with the menace of moisture. If one adopts to a proper dehumidification process it ensures optimum humidity control as required by the process and are dependable, efficient and versatile. Dehumidification allows smooth powder flow even during periods of high humidity. Desiccant based dehumidifiers lower the moisture content of the surrounding air maintaining RH at a constant level

regardless of the ambient conditions during the production, storage and packing to help improve the quality and retain the freshness of the processed food longer. Desiccant Dehumidifier not only maintains the required humidity level but also ensures cleaner production environment as well cold store areas, as the desiccant provided in the dehumidifier prevents microbial growth or fungal growth. The use of our systems dramatically reduces the sanitation cycle time, prevent frost and ice build-up in evaporator coils at cold storage/ freezer areas and spiral freezers. Bry-Air Desiccant Dehumidifiers are designed to comply with the most complex and critical requirements of high humidity and moisture removal/ regain during manufacturing.

CXO OUTLOOK August 2021

FOODIE’S IDEAS

The Rise of the Food-Tech Industry in 2021 Harsh Shodhan, CEO & Co-Founder, H & J Food Concepts

Harsh is also a food and lifestyle blogger and in his free time loves blogging about his experiences as a vegetarian in a foreign country. Having catered to some of the city’ s premier businesses & high net worth families, large corporates, premium fashion & jewellery stores amongst a large ever-increasing client base, Harsh now thinks, dreams and lives to create more scrumptious cuisines for his guests.

CXO OUTLOOK August 2021

ood plays a major part in the Indian Culture and just like its culture, food choices and preferences change by the kilometre as you travel, every village every district will have its own range of food and its own specialities, the same dish may be cooked in different ways in neighbouring regions. Food in India is not only associated with culture but also with religion, class and so much more. In this huge melting pot of cuisines and culture, one this is very common - Indians love to eat. With seasons, with months, with distance food changes. But the largest binding force for food in recent times has been TECHNOLOGY. Food has used the bandwagon of technology so beautifully to grow its presence across the length and breadth of the country seamlessly. Now sitting in Mumbai, with a touch of a button we are able to get Amritsari Wadiyan delivered to your doorstep, Hyderabadi Haleem once a rarity now comes delivered beautifully packaged, leakproof and as fresh as possible, straight to your dining table. You may be in Kolkatta but craving Gujrati Dhokla, don’t worry one click and it will be delivered. That’s how accessible food has become thanks to Technology. With aggregators who will deliver from anywhere to anywhere in your city, all you need to do is open a simple app, search for the restaurant or cuisine and pronto in 45 minutes flat and it’s at your apartment! So now you may feel like eating Sikkimese Thupka and yes it's available, you may wish to eat Ghee Roast Chicken and no worries, it is available. All thanks to technology and the vast apps available. Technology has changed the way India eats. If you’re travelling by Indian Rail & you have a stop at Jodhpur, you feel like eating your favourite Pyaaz Ki Kachori and Mirchiwada, worry not, order it in advance over an app and it will be waiting for you as your trains rolls into the station. Thanks to technology.

With the advent of Covid-19 and its aftermath, Technology kept the food industry alive and kicking with more and more aggregators and DirectTo-Consumer food delivery apps making an appearance making more restaurants and food delivery options available to customers

CXO OUTLOOK August 2021

As there are various technology options available for selling and delivering, home chefs have also been able to promote their food using modern technology

Technology has given also reduced our cooking efforts. Thanks to various preservation techniques, you can carry your favourite restaurants Daal Makhni and eat it when you are holidaying in the Swiss Alps and are missing home food. Now with vacuum packing, students travelling abroad can carry their home favourites like khichdi and dum aloo to eat it as fresh in their dorms. Double income families where both husband-wife are busy working and have less time to cook and prep, now can call for DIY kits which come to you semi-prepared and all they have to do is open and finish off the dish. Along with the century-old slow cooking methods, India is now waking up to semi-prepared gravies, frozen meals and home-style food delivered home. And Technology has made this happen. With the advent of Covid-19 and its aftermath, Technology kept the food industry alive and kicking with more and more aggregators and Direct-To-Consumer food delivery apps making an appearance making more restaurants and food delivery options available to customers. Now when you walk into a restaurant, menus have become a thing of the past, all you need to

CXO OUTLOOK August 2021

do is aim your smartphone at a QR code and you will get the entire menu available to you. Some restaurants also accept the order from their digital menu and one can also complete their payment using the same digital platform. We have also seen the technology companies developing platforms for home chefs to market their products. Some of the Apps cater to a specific area and some cater to the city. As there are various technology options available for selling and delivering, home chefs have also been able to promote their food using modern technology. These apps have been priced at an affordable price for small home-based entrepreneurs. Social Media has also played a significant part for Food seller’s to display their food and also gives buyers a variety of options to choose from when they are looking to explore different food options/cuisines/restaurants etc. Technology has enhanced the entire culinary and food experience for more than a billion people in India, knowingly or unknowingly, it is surely here to stay. As long as the gas is on, technology in the food industry is going to be totally fired up and will keep evolving with different offerings to food suppliers and consumers.

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CXO OUTLOOK Higher Education Digest November August 2020 2021

EXPERT OPINION

Finding the Silver Lining with Rise of Cloud Kitchens Amidst Covid-19 Akash Shah, Co-founder & CTO, YumzyX

CXO OUTLOOK August 2021

uch before the surge in COVID-19 cases, physical elements like a storefront, paper pamphlets, etc. offered a leeway for restaurants or food business owners to showcase their brand image. The tables turned upside down when the restaurant owners had to shut their outlets altogether and rely on the food delivery apps. Now that the customers can’t be seen on the restaurant floor, people need a way to connect with the restaurant’s brand. The only solution when a restaurant is at its wit’s end is to consider setting up an online ordering platform or a cloud kitchen concept to streamline the ordering process.

Akash Shah is an entrepreneur and an engineer who is an ardent participant in the Indian start-up ecosystem. With expertise in product development, technology architecture, growth hacking and business development, Akash finds his passion in building efficient teams and scaling frugal start-ups. As the Co-founder & CTO of YumzyX he aims to develop a solution driven work culture and keenly promotes the same values among all his clientele.

How Digitization Rescued Brands Operating in Isolation The rise of Cloud Kitchens painted a positive picture for the food and beverage sector. This was but followed by the challenge to create an impactful presence to build customer relationships. Restaurants have got physical elements like pamphlets, standees, outlet themes, etc, to showcase their brand value, on the contrary, cloud kitchens have only got a website that acts as a restaurant storefront. Therefore, cloud kitchen owners begin to utilize unconventional ways to showcase their brand value in a finesse manner. Representing the website as a canvas to paint a vivid brand story of the business, creating engaging digital campaigns, and manufacturing methodologies that speak your brand tone have helped potential customers to connect with the brand’s persona. Painting a cloud kitchen’s picture can be as simple as publishing a stellar copy or content that reflects the cloud kitchen’s ideology. Nevertheless, solely putting out stellar content and an appealing website is not enough to boost a cloud kitchen’s sales. Online Ordering Platform Making Cloud Kitchens Touch Horizons Most cloud kitchen owners omit the importance of affiliating their website with an online ordering platform. They get stuck within the comfort zone offered by third-party food apps. Being in the foodtech industry, it was imperative for the restaurant & cloud kitchen owners to not rely on a single plan, rather lay their eggs in multiple baskets to

CXO OUTLOOK August 2021

keep business on the safer side. Food Aggregators further assisted the business get orders but kept the cloud kitchen owner limited to exploring and experimenting with different business models. With the digitization of the world, the competition increased, and there was a strong need for cloud kitchens to build their own online ordering platform alongside affiliating with thirdparty food delivery apps in order to stay ahead of

Painting a cloud kitchen’s picture can be as simple as publishing a stellar copy or content that reflects the cloud kitchen’s ideology

their competitors. To make a strong foundation for a cloud kitchen, the business needed to run operations in a functional & dynamic manner. A cloud kitchen can’t simply rely on food delivery apps, but yes these apps posed as a stepping stone for running the cloud kitchen operations. For the business to flourish successfully, cloud kitchen owners needed to utilize food delivery apps and own online ordering platforms to balance out the profits. With the current pandemic, it was a task to

CXO OUTLOOK August 2021

decide on which one is better or which model one should opt for, for running cloud kitchen operations. But, it was essential to balance out both models and use this combo to the max, to perfectly run the business in this vertical. Amalgamating technology to ace the realm Someone has rightly said that big risks always pay off, but many of the popular food chain delivery apps have broken the paradigm of taking greater risks. With the emergence of ultra-modern AI-driven technology, more and more people were coming up with creative yet affordable ways to set up a business. Taking inspiration from existing popular Cloud Kitchens, many owners explored more tech-friendly ways to give a kick to their quick-service food chain business. Additionally, it helped them get rid of the primary problem of retail, i.e. finding the perfect store location, and offered them freedom from the shackles of offline constraints in making sales. Though there is no hard & fast rule of taking a business online, individuals always try different permutations & combinations for aligning the business operations and generating the maximum revenue out of the business model. However, in the current scenario, by setting up a dynamic online ordering platform the rising brands could save a lot of time and money, which is a necessity for running a traditional restaurant business. Now that a huge chunk of restaurateurs are transmogrifying their business by turning their brick & mortar business plan into an unconventional cloud kitchen concept, they need to understand the unlimited power of building one’s own online ordering platform as an add on to third party delivery apps. By doing all this one can set a benchmark in the F&B industry. Another pre-eminent fact is that a cloud kitchen that has its own online ordering platform can offer an edge over the location, customer demographic, scaling constraints, and even food fatigues, everything can be evaporated at once. To wrap up, the rise of the concept has made it evident that cloud kitchen in itself is a trump card and as we witness the emergence of more participants, an integration with an Individual online ordering platform alongside efficiently taking orders on thirdparty apps, cloud kitchen businesses can become limitless plus stay guarded against any potential risks in the industry.

Higher Education Digest July 2020

CXO OUTLOOK August 2021

LEADER’S INSIGHTS

ROLE OF TECHNOLOGY & CONSUMER HABITS IN CHANGING THE FUTURE OF FOODTECH Kumar Setu, Co-founder and CCO, Sprink.Online Kumar Setu is the Co-founder and CCO of Sprink.Online, an IIT Kharagpur

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alumnus and a serial entrepreneur. Sprink is a full stack meal subscription platform, created to make affordable daily personalised meals accessible to people wherever they are - at their homes or workplaces. Setu has been a part of the food industry for more than a decade.

ften when we talk about food, technology is the last thing that comes to our mind. Nonetheless, technology has transformed everything around us. It has massively changed how various industries function globally and the food industry, too, is no exception to the phenomenon. As for the future of food, the changing consumer food habits and preferences has led to technological advancements in various aspects of the value chain. In today’s time, the food ecosystem has witnessed the rise of new-age innovations and mobile application services which has truly changed how the food industry functions. In other words, the recipe of technology and food has given birth to food technology, more popularly known as ‘foodtech’.

CXO OUTLOOK August 2021

Factors Shaping the FoodTech Industry The food industry is continuously evolving and the consumption patterns have also changed over the years. There is an increase in population who are moving away from their homes to other cities and thus, also increasing the new consumer demographics that encompasses the young, urban dwelling, working professionals; who are hardpressed for time; and in search for food options that are readily available to eat and easily available. Studies show that the changing consumer habits and spending trends are inclined towards paying for food tech innovations which can fulfil their needs of convenience, good health, hygiene and low environmental impact. This upcoming opportunity

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THE PERFECT COMBINATION OF EVOLVING DEMOGRAPHICS, NOVEL TECHNOLOGIES AND NEWLY EMERGING BUSINESS MODELS IS DRAMATICALLY AFFECTING HOW WE FIND, PURCHASE, COOK AND CONSUME FOOD

CXO OUTLOOK August 2021

in food tech is a great time for food companies to capitalize on these consumer demands in the market and grow rapidly. The perfect combination of evolving demographics, novel technologies and newly emerging business models is dramatically affecting how we find, purchase, cook and consume food. In the food tech industry, implementation of technology is helping automate processes and production, personalization of food choices and food products and making services convinient with greater transparency in the systems. There are many areas technology is playing its role to make any system more efficient: 1. AIML (Artificial Intelligence and Machine Learning) for creating personalised food experiencesIn general, when a food company scales, it moves towards standardizing their food menu with help of technology, while the recent consumer trends show that with passing time, more customers are looking for personalised services than just being served the same runof-the-mill menu. Though there have been a handful of apps and platforms in the food space working towards personalising their services for the customer, yet largely it goes back to the standardization of the menu. Soon, the key to a better customer experience will be depending on how well you know your customer and then design services for each individual. With backends that are based on AIML (Artificial Intelligence and Machine learning), it can detect differences among various users on a granular level and create profiles for them. We can track and measure the behaviour of customers and sell the best personalised services to them. In the future of food tech, this technology will play a huge role in mapping, creating more personalised experiences for the customers.

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2. Blockchain in the food ecosystem Applications of blockchain can bring a huge level of transparency and traceability in the

CXO OUTLOOK August 2021

food ecosystem given there is full stack or vertical integration so that data can flow easily. For instance, if we want to build transparency regarding what kind of fertilisers were used to grow the vegetables which were used in meals, then the data has to seamlessly flow through blockchain from farmers to warehouse companies to logistics to food producers to customers. We need tech to deeply integrate all systems. Lately food companies are understanding the advantages of such state of systems and full stack players like ourselves (at Sprink.online) can still leverage it to at least share what brand of ingredients were used at what temperature they were stored, what ratio was used in cooking and so on before it reached the consumer's plate. This might not be extensive but will still build a huge transparency within the ecosystem we control. We were the first to leverage blockchain to launch a utility cryptocurrency which can be used to buy real food and continue working on leveraging this technology to build more efficiency in food world 3. Automation in Cooking & Food Production Processes Today’s customers look for consistency in the quality and taste of food. In order to standardise the food production, companies are going for different levels of automation, anything from automating processes at the kitchen to investing heavily in machine led fully automated integrated systems. Such practices help standardise the quality of food by standardising the recipes, ingredients, method of cooking, so every batch of production of the same menu is same. 4. Vertical Integration of Technology for cost optimization Consumers are looking for valuable transparent services, and to create such services, there is a very thin margin for error. So, hereby technology plays a crucial role in creating fully visible integrated value chains that can be checked from any point and corrected for cost

AS THE NEW GEN OF CONSUMER HABITS HAVE SHIFTED MORE TOWARDS EATING HEALTHY, THEIR EXPECTATIONS FROM FOOD COMPANIES INCLUDE TRANSPARENCY IN THE INGREDIENTS THAT ARE BEING USED, HOW THEY ARE SOURCED 103 optimization. More food service companies are getting their systems fully or semiautomated, not only to serve their customers better but to optimize costs in almost all areas of sourcing, production, logistics, operations, delivery. 5. Image based verification in Sourcing As the new gen of consumer habits have shifted more towards eating healthy, their expectations from food companies include transparency in the ingredients that are being used, how they are sourced. Moreover, there are AI-based solutions that use image-driven analysis of raw materials which can detect the level of pesticides and other impurities at the sourcing level rather than manually checking it, which might not be accurate in detecting chemistry of the raw material and is limited to scanning and discarding basic

impurities. Such use of technology, helps in keeping the food clean and sanitised even before it is loaded into the kitchen shelf. 6. Use of Video Tech to Maintain Hygiene Standards Companies are now working to make image tech which can verify mask faces and further adds semi automation here to check the hygiene standards set in the post pandemic world. Even inside a kitchen, these new-age technologies can become useful on a day-today basis. In conclusion, it can be said that moving from only food delivery business, the foodtech industry has been rigorously working on several fronts to deliver the best dining and food experience to a customer – be it at home or office. Thus, foodtech will weave a new story in the foreseeable future.

CXO OUTLOOK August 2021

EXPERT OPINION

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Cold Chain Logistics Solutions & Supply Chain Strategies for Fresh Food Deliveries in India Rajat Gupta, Founder & CEO, TESSOL

CXO OUTLOOK August 2021

Rajat started TESSOL in 2013 with the vision to revolutionize the farm to fork cold chain in India. Over the last 4 years, TESSOL has grown to be recognized as a pioneer in the sustainable cold chain space globally. Rajat has a strong inclination towards technology and passion for product development. Hebrings in a deep understanding of product design, technology commercialization and market entry strategy and has been instrumental in leading the organization from its inception to date as its CEO. He brings with him extensive experience in the energy space across India, Europe and the USA. A mechanical engineer from IIT Delhi (2003) and an MBA from Harvard Business School (2010), Rajat has extensive experience in the energy space and has worked with several early-stage startups, multinationals and venture funds across India, Europe and the US.

resh food demand and supply chains are rapidly evolving in India. While there was a momentum towards direct to customer supplies starting in 2018-19, post COVID, this has become the focus of all supply chain companies in India. With the growth of e-commerce and last mile delivery companies like Swiggy, Zomato, Dunzoetc, one no more needs to be a large brand with marketing budgets and supply chains to reach your product to the customer. However, these growth opportunities do not come without creating significant challenges for the operations and supply chain and therefore need to look for new / alternate solutions. One such area that has required a significant fundamental thinking through is the cold supply chain. Traditionally cold chain has implied refrigerated trucks moving products from one point to the other. Typically, these refrigerated trucks would pick up a minimum of 500 kg to 1 ton of product and deliver to various destinations across the city or country. The challenge with new-commerce is typically the size of the package and the fact that it may be the only cold chain package amongst the many ambient packages being distributed. Therefore, cold chain technology of reefer trucks does not work in these scenarios, and we need something that is: ● Independent of the vehicle form (bike, 3-wheeler or a 4 wheeler) and package size ● Able to maintain temperature without a connection to a power source ● Can maintain temperature from 1 hour (hyperlocal) till 48 hours (intercity courier) Solutions based on Phase Change Technology, or “Thermal batteries” have become very popular in this context. These are engineered chemicals with specific freezing and melting points (ranging from +18oC for use in chocolates to -25o for use in Ice creams). Unlike the earlier used glycols, these materials are designed to be nontoxic non-flammable – and therefore suitable to be packed along with food products. These are used inside a plastic pouch or a bottle (Like a gel pack) and kept in a freezer for a few hours. Once frozen, these can be put inside an insulated bag or a box and they can maintain temperatures for a desired period of time. Pictures in figure 1 show various forms in which these solutions are being used. Unlike the earlier options of gel packs and Dry ice, these solutions give a very accurate temperature

CXO OUTLOOK August 2021

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control and therefore are more effective that even a reefer truck for high frequency distribution. In the same box, different temperatures can be maintained by using different PCM packs or cartridges depending upon the product to be delivered. This provides flexibility in operations and a much higher asset utilization without being dependent upon dedicated assets like reefer trucks. From an economics perspective, the capex and opex are upto 50% lower compared to a refrigerated truck. Also one incurs costs only for what one uses and not the whole vehicle. These factors give this solution unparalleled economic advantage and ensure a cost effective delivery every time to the customer. Also called passive cooled logistics solutions, these units are virtually maintenance free. The box or the bag does not contain any moving parts and therefore chances of damage and downtime are virtually negligible. The units can range from 2 liters all the way to 2000 liters giving size flexibility to users. Finally, these solutions eliminate the use of fossil fuels which have conventionally been driving the cold chain. Therefore, these

CXO OUTLOOK August 2021

are not only economically viable, but also environmentally sustainable. PCM technology-based solutions offer a possibility of disruption in the cold chain logistics industry which was largely asset driven and designed for the western world which has a different demography and retail infrastructure. The new commerce is not only looking for new technology alternatives but also inspiring the traditional Kirana commerce to evolve along with it. The proliferation of dark stores is one such activity being pursued by most organized retailers to improve their access and reduce delivery times. We are also seeing an increased interest in brands building a distributor to Kirana / retail store cold chain using these simple solutions. I strongly believe that these sustainable and affordable solutions offer a large opportunity for Indian cold chain and fresh food delivery. This can completely revolutionize the way food movement happens and can bring in new business models for existing and new logistics as well as food companies. As this space matures and volumes grow, adaptation to new technologies and innovation will be critical to win the race.

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CXO OUTLOOK August 2021

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CXO OUTLOOK August 2021