Food is FoodTech Now

TBA BULLETIN SPECIAL EDITION

The way we procure our food/ nutrition today, has completely changed. It
is no longer an activity to rejoice, bond and celebration. It now comes to
us in a box traced through transit apps. It definitely compromises the
sensory elements of relishing food through tastes, aroma of spices and
then taste.

The procurement and consumption of food has become technology-

driven. With Tech companies developing products and services it is
continually changing discovery, purchase, delivery and consumption of
food.

COVID-19 continues to disrupt and fuel the change of this industry in

ways, which were not predictable even 5 years ago.

We are in this special edition of the month tracing for you the radical
changes FoodTech is going to be to your food reality. Legal ordinances to
moderate are not far behind.

Demand for Food
• Demand for food delivery remains
elevated with a demand from
consumers for more meals at home.
• Restaurants are finding it hard to stay
afloat as dine in options. But meal
delivery apps and marketplaces have
experienced an increase in demand.
• On the investment side, the delivery
ecosystem is witnessing a surge in
investment. There has been a need
to upgrade delivery infrastructure to
meet the fattening demand.
Digitally managing fulfilment centres
and Cloud Kitchen
• Restaurants and grocery stores are
upgrading themselves to digital
ordering software, with optimized
order fulfilment methods.
• Micro fulfilment centers and cloud
kitchens, and order-receipt solutions
to reduce pickup and delivery are the
requirements of the industry players.
5
Foods in Demand
• Plant-based meat alternatives see a
increase in demand due to the
pandemic and due to the meat- and
dairy-product supply chain collapse.
• Cultivated agriculture have somewhat
sustained the disruption since these
products are in the R&D phase, and
commercialized models have not yet
been established.
• Meal kits, are another rising trend.
Though, sustainability is yet to be
tried of this model.
Labour and Supply Issues
• Labor supply may not be a problem during the COVID times and appear
affordable because of unemployment. But in the long run continued investment in
technologies will lead to automation leading to Food robotics, autonomous
delivery, vending options etc.
• Use of AI for new products optimal flavors, textures, nutritional components and
ingredient combinations.

Delivery and Intermediaries

• The Intermediaries are the important link in connecting consumers to the Food
Providers.
• Food Providers are also managing payments, order history and require cross
functional abilities and features.
• The features are developed mainly by user data.
• Delivery service aggregation is the next level of maturation that the sector will
witness.

Food Suppliers
• Improving shipping capabilities for food products
is critical as these have a degree of perishability
and fragility.
• The grocery stores are likely to face a significant
challenge on this counts and address consumer
preferences about condition of products.
• Some stores are developing proprietary dark
grocery stores.
Inventory Planning
• Arguably, AI has to be brought in for inventory
planning for management of perishable goods.
• Grocery shopping is a repetitive exercise with
room for AI & predictive analytics technologies,
supplier analytics to anticipate orders and
optimize inventory to maximize profit and reduce
spoilage.
5
Warehouse & assembly automation
• Food supplier companies struggle with high operational costs
related to sourcing ingredients and assembling orders.
• Warehouse automation software and hardware is likely being
used for streamlining this process, optimizing operations and
reducing costs.
• Micro fulfilment centers to facilitate rapid order fulfilment for
online grocers play a critical role to this.
Cloud kitchens
• Cloud kitchens, kitchens which operate without a retail dine-in or
pickup location.
• Food produced in Cloud kitchens is generally just for delivery and
can be ordered through meal delivery apps.
• Existing restaurants are using cloud kitchens as a channel for
outsourcing the delivery only operations.
• All Cloud Kitchens supply the strategic intelligence to food
providers.
Legal Framework
• The shared economy is beginning to get regulated in India, the
OLA and UBER share a ride being among the first.
• With FoodTech taking over how food is viewed and will be
consumed in the near future, there are the following spaces to
legally moderate:
a. Privacy and use of data sharing and flow;
b. Quality Control norms at the dark grocery warehouses and cloud
kitchens;
c. Quality Control at the delivery logistics end;
d. Food and FSSAI Licenses;
e. Eating out of a box will require food grade material availability;
Disclaimer
The weekly roundup is only for information purposes. Nothing contained herein is, purports to be, or is intended as legal advice and
you should seek legal advice before you act on any information or view expressed herein.

Endeavoured to accurately reflect the subject matter of this alert, without any representation or warranty, express or implied, in any
manner whatsoever in connection with the contents of this. This isn’t an attempt to solicit business in any manner.