How Tech is Changing the Food Industry

Inc. Magazine put it most eloquently:

“No industry is impervious to the revolutions caused by technological advances.”

Whether we’re ready to admit it or not, we’ve witnessed technology become the driving force behind many companies in long-standing industries over the past decade. While AirBnB shook up the hospitality industry, mobile apps like Uber and Lyft dominated taxi companies. Some industries have been slower than others to experience the influence of such disruptions — the food and produce industry being one of them — until recently. Technology and innovation are starting to disrupt the produce industry, and businesses and consumers alike are starting to listen.

Social media and smartphones have changed everything. They’ve shown consumers the true sources of products, any potential harmful ingredients, and how certain products are made. There’s a kind of transparency now — interconnectedness, if you will — that wasn’t there before. Social platforms like Instagram and Snapchat have made it easy for consumers to become “food producers,” create user-generated content that brands can share. These days, it seems like people are more and more interested in taking a deep dive into the food they’re eating, and where it’s coming from — than actually eating it.

Technology has not only changed the way we view food — the consumers themselves have shifted. They demand high quality and are now interested in customizing their food experiences in real life (and especially in restaurants). Union Square Cafe’s Danny Meyer stated,

“It’s almost like, ‘yeah I see your menu, but here’s how I’m going to eat.’”

He goes on to mention the dramatic uptick in allergies and how things like celiac disease, peanut allergies, and the words “gluten-free” seemed foreign to him at the start of his business 29 years ago. There are now apps available that track food intake, allergies, and dietary restrictions that didn’t exist before.

Allergies and restrictions aside, the food industry is one of the largest and most vital industries in the world. Think about it — everyone needs food for survival, and most of us like to enjoy a good meal. The food industry encompasses everything from producers and shipping companies, to truckers, grocers, and restaurants. Therefore, it makes sense that the industry would take advantage of in-depth research and big data services to better understand their consumers, increase efficiency, and generate new creative recipes in mass quantities. These kinds of technologies are not only enabling researchers to make new discoveries (yes, bacon is awesome on donuts, sugar is terrible for you, and there is now a “meat” made out of plants), but also allowing big data to help them find the next hot ticket food item(s). While vegan pioneer Karyn Calabrese has been crafting “meat” dishes from plants for decades, now it’s become mainstream.

Individual restaurant chains have also started exploring how big data can help improve their business and customer service. McDonalds, for example, has actively pursued a data-driven culture by turning to analytics to identify best practices and better understand what is happening at specific locations.

The bottom line? Companies are up close and personal to consumers and have a better sense of what they’re looking for — and consumers are more informed than ever before. Misleading messaging and false ingredient information don’t fly. And, as Danny Meyer stated so poignantly, “A table for four is now a table for eight; it’s the four people and their four cell phones.”

Ready or not, technology is here to stay.

A 20+ year entrepreneur with a no-B.S.-in-business attitude, Shaun Black has powered over $30 million in annual revenue with his trading and importing company, Diamond Produce, founded numerous successful local businesses, and remained on the cutting edge of national start-up industries for over a decade.

His experience as a grocer taught him the importance of exceeding expectations, one relationship at a time. Through systems, automation, and personal touch, his businesses deliver consistent retail-minded service. His “add value” approach to vendor and teams alike has paid dividends and been the driving force behind growth and profit.

When in Doubt, Add Value.