Rian Mc Donnell (CEO): MS. Engineering Entrepreneurship Notre Dame '20 | MEng & BEng Mech. Engineering Trinity College Dublin ’19 | Siemens Corporate Technology Engineer ‘18 Elise Weimholt (CTO): Project Mechanical Engineer at Lighting Manufacturer Jul ‘19-Jul ‘20 | BS. Mechanical Engineering Notre Dame ’19 Patrick Faley (Engineer): ML Expert. ND CS Undergrad. Member of Computer Vision Research Group. Eoin Oude Essink (BD): Outreach, customer validation and partnerships in EU and USA. 7 advisors: Roger Berdusco (VP Marketing, Frito Lay), Jay Leyden (CEO, Pritchard Industries), Mike Bechtel (Deloitte), Declan Mc Donnell (R&D Manager, ABP Food Group), David Murphy (former CEO of Better World Books), Jarek Nabrzyski (Director of Center of Research Computing, Notre Dame), Prof. Kevin Kelly (Trinity College Dublin).
Food service is a notoriously tight margined business, typically 4-6% profit margin. With COVID-19, capacity is cut due to social distancing, and sanitization costs are increased, while fixed costs are constant. This leads to cafeterias and QSRs running at a loss, or just about breaking even.
FloWaste is a food analytics platform. We use image recognition to empower cafeterias and QSRs to double their margins by reducing avoidable costs associated with food preparation and inefficiencies. By installing ceiling mounted 3D cameras in the kitchen, at point of sale, and post-meal, we can track where and why food is being wasted. Some examples of the insights we give include altering suppliers, portions, ingredient combinations, and food preparation. While providing this value, we also engage the guest eating at the establishment, allowing them to track their food and nutrition, simply by taking a picture of their food with their smartphone.
Our beachhead market of cafeterias and quick service restaurants has an annual TAM of $2.9B in the USA and EU, of which we believe a 20% penetration is possible, yielding an annual SOM of $580M. This penetration is based off a model scaling with 3 facilitators/chains e.g. McDonald’s, Sodexo, Aramark, etc.
Key competitors include LeanPath, Winnow and food solutions. However these are all focused on preconsumer waste only, and use hardware weighting scale units. FloWaste tracks food pre and post consumer, using image recognition and machine learning with 3D camera technology, eliminating friction associated with weighing scale units. Biggest competitor is the status quo
Base Monthly subscription to cafeterias - $299 (3 cameras, $100 addition for each extra camera)
COGS (cameras) - $900 per cafeteria (breakeven at 3 months, cameras can be reused)
Additional Revenue (extra cameras, app & platform marketing, data sales to suppliers) - $300/month
LTV - $50,400 (7-year lifetime)
CAC - $1,650 (COGS, marketing, and onboarding costs)
LTV/CAC Ratio – 31:1
Marketing & Sales:
Branded Trials: High reputation trials with McDonald’s, ISS Facility Services, Intel EU HQ lined up. Act as “Case Studies” for future sales. Big brands give huge legitimacy.
Conferences and Events: Industry events are ideal to market to cafeterias and QSRs.
Facilitator agreements: Forming partnerships with major facilitators like Aramark, Sodexo, Compass, McDonald’s allows us to get infant of 10,000’s of cafeteria locations efficiently.
Platemate App: As part of our platform, our guest app allows users to gather data anywhere, and gives us a great marketing and sales channel in people’s pockets.
Progress to Date:
June 2019 – Platform trial in San Francisco.
January 2020 – Presented at CES, to press and industry interest.
March 2020 – McDonald’s NDA and Partnership agreement signed.
May & July 2020 – Founders (Rian & Elise) go full time.
January 2021 – ISS Facility Services Case Study trial.
Febuary 2021 – McDonald’s Case Study trial.
March 2021 – Sign partnership agreements with ISS, McDonald’s, Sodexo for multiple locations.
April 2021 – NSF SBIR grant ($256,000) awarded to continue technology development.