Tech Tracker: Why DIY mobile apps are the next big tech tool for emerging restaurant operators
DoorDash and Toast both just released branded mobile app tools for operators to be able to easily launch their own app.
15 October 2024
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For a long time, technology innovation in the restaurant industry was relegated only to the biggest names in foodservice with the budgets and staff to build a robust tech stack. But as omnichannel capabilities and a strong digital presence become table stakes even for the smallest of emerging brands, being a mom-and-pop restaurant stuck in the analogue era is not sustainable.
For many operators that don’t have a CDO or CIO on staff, sticking with just one or two tech vendors that offer an expansive range of tools can be tempting. The latest investment for two big names in digital foodservice technology? Branded mobile app tools. Both DoorDash and Toast announced this month the launch of new DIY mobile app capabilities that allow operators to plug in their brand colors and logos, (and in the case of DoorDash, their design needs and operations goals) and spit out a first-party app, with little experience necessary.
Both DoorDash and Toast are aiming their new tools at emerging operators and helping to even the odds between smaller and larger brands that are all fighting for a piece of virtual real estate on consumers’ phones.
In other news this month, Olo laid off more staff, drive-thru automation company, Presto put itself up for sale, and Serve Robots developed a robot-to-drone delivery solution.
Tech Tracker rounds up what’s happening in the technology sector of the restaurant industry, including news from restaurants, vendors, digital platforms, and third-party delivery companies. Here’s a breakdown of what you need to know and why:
DoorDash and Toast both launch DIY mobile app tools
Earlier this month, Toast announced a new suite of mobile-first innovations that includes a branded mobile app capability, allowing operators to launch their own customizable, white label iOS/Android apps. Previously, Toast only had this functionality available through third-party delivery integrations.
Through Toast, operators can select their brand’s imagery, colors, and logos to customize the app, as well as choose to add push notifications and promotions. This allows operators to create a basic app with no coding or other tech experience required, and it is available with the Toast Digital Storefront suite.
“Our research found that 75% of surveyed guests say they have an interest in using a restaurant’s white-label app,” a representative from Toast told NRN. “Guests connect to what a restaurant represents and the experience it provides them both on-site and online, so we are seeing more restaurants try to enhance the experience they provide pre-, during and after a guest visit.”
DoorDash takes these capabilities one step further to offer an à la carte mobile app building solution through the new DoorDash Commerce Platform. When an operator signs up for this feature, DoorDash holds a series of consultation meetings with them to learn more about their branding, sales goals, and timelines. Operators will also have control over the general design of the app, as well as the ability to add a customizable loyalty program. Then the operator is sent over mockups of the app, and if approved—it will go live on the iOS and Android app stores.
“DoorDash will customize the app launch to each merchant’s specific needs and preferences,” a company spokesperson told NRN. “For example, some merchants prefer to be actively involved in the design process, while others will rely on our expertise to handle most aspects of the app creation. DoorDash meets merchants where they are and works closely to ensure the app meets each merchant’s expectations prior to launch.”
The mobile app uses DoorDash’s online ordering solution and starts with the standard commission free pricing of + 2.9% fees, a spokesperson confirmed.
Presto’s lender puts the automation company up for sale
Foodservice AI and automation company Presto put itself up for sale, the company’s lenders, lenders, led by Metropolitan Partners Group, announced late last month. Metropolitan announced an injection of capital to support Presto through the sale process, with the help of its sale agent, Rock Creek Advisors.
“This process will allow our business to emerge as a stronger, more nimble organization,” Presto CEO Gee Lefevre said in a statement. We’re grateful for the continued support of our lenders, customers, vendors, and employees as we navigate this process. Presto is committed to maintaining its current service levels, with no planned changes to its employee base or operations.”
Presto has recently improved its voice AI accuracy and will soon be expanding to 750 additional quick-service restaurants.
Olo announces second layoff in 15 months
Olo recently announced a layoff of 9% of its corporate employees in order to cut costs as the technology company continues to scale and grow. Olo last announced a round of layoffs in June 2023, when the company made the decision to cut 11% of its total workforce.
Unlike many of its foodservice tech competitors, Olo has recently become profitable over the last few quarters, thanks to 27% year-over-year revenue increases in Q2, but CEO Noah Glass admitted that the company still needed to “drive efficiencies.”
“By balancing our growth-to-expense profile and sharpening our focus, we will be even more capable of achieving success on the journey ahead,” Glass said in a letter to employees about the latest round of layoffs.
Serve Robotics and Wing partner on robot-to-drone solution
Sidewalk delivery robot company Serve Robotics and on-demand drone provider, Wing Aviation LLC announced a partnership that will bring a robot-to-drone solution to last-mile delivery services, allowing delivery services to use robots when a customer is nearby or drones when they are farther away.
The algorithm is designed to be able to distinguish a robot order (within a couple of miles) or a possible drone delivery (which is longer than that).
“When robots are doing deliveries and you get an order that’s six miles away, you’re not going to do it with a robot,” Serve CEO Ali Kashani told Nation’s Restaurant News. “Or when drones get a delivery and it is in a place where they don’t have access because there is no real estate for them to land and grab the item, you can’t use the drone. These systems are really powerful for what they do, but when you put them together, they’re even better.”
Since both robots and drones don’t have to deal with parking or traffic, they can both be faster and more efficient for operators to use than traditional delivery services.
Thanx launches integrations center
Loyalty software company Thanx announced a new enterprise integrations center called Thanx Connex, which allows operators to connect many of the different tools in their tech stack to access data quickly without having to use extraction processes or rely on third-party services to get each of the tech tools to speak the same language.
Thanx Connex facilitates the sharing of data from these tech tools to centralized data warehouses, which reduces the need for data engineers to help store and parse different data from multiple sources.
“Integrations are essential as restaurants increasingly digitize and optimize their IT systems and operations,” Emily Rugaber, vice president of marketing for Thanx, told NRN. “With technology leaders adding more niche, best-of-breed partners, the complexity of integrating these systems becomes critical. Effective integrations enhance data accessibility and operational efficiency, enabling restaurants to make informed decisions and streamline workflows.”
Source: Nation’s Restaurant News
