Aaron Knape, CEO and Co-Founder of Rivalry Tech, joins the pod to talk about his journey to entrepreneurship and what it's like to scale a leading technology company in Houston. Rivalry Tech began with their mobile platform, sEATz, and has now expanded to revolutionize hospitality and convenience with their order fulfillment technology. Talking points include pivoting services during COVID lockdown, increasing automation in food service, and negotiating big deals with stadiums as a small startup.
Timecoded Guide:
[00:00] Podcast begins - Feeding Tomorrow: Revolutionizing the Future of Restaurant Technology with Aaron Knape
[03:21] Getting inspiration from the COVID pandemic to revolutionize food service
[08:18] Approaching large companies & stadiums as a small startup
[14:05] Leveraging connections to build trust-based business relationships
[19:53] Pivoting from stadium food service to healthcare and fast food
[24:45] Enhancing food industry technology with automation & ai
[37:48] Forging a future for better, faster food service & hospitality
What inspired the creation of Rivalry?
After co-founder Marshall missed an iconic home run at a World Series game due to long food lines, Aaron and Marshall combined forces with Craig Ceccanti to make a difference in the food ordering experience. What started as a simple order ahead idea quickly evolved into a much more powerful, fully integrated mobile technology that made a massive difference in stadium ordering. Rivalry Tech leveraged an untapped market and then had the power to do that again when they saw even more potential in the medical, restaurant, and hospitality industries.
“There was an obvious gap in the market, even though it was 2017 and the iPhone had been around for a while and we were used to having this powerful tool in our pocket, we weren't using it for that purpose.”
How did Rivalry see COVID lockdowns as an opportunity to grow and pivot?
Although COVID interrupted stadium ordering, Rivalry also saw an opportunity to leverage that time to expand their services and increase their impact on mobile food ordering. Gaps in innovation were clear to Aaron and his team; hospitals were understaffed in cafes, fast food was encountering cost issues with minimum wage increases, and hotels were struggling with outdated technology in their kitchens. Rivalry Tech filled these gaps, optimizing the food service industry across audiences and delivering better food faster.
“We realized professional sports was the only sporting event that made sense from a revenue standpoint, but even then, it's challenging, it's seasonal, cyclical and there's only about 120 teams. That's not a total addressable market that investors get excited about, or even that we get excited about.”
How will automation and artificial intelligence impact the future of the service industry?
The food service industry at all levels, from hospital cafes to stadium counters to fast food drive-thrus, is desperately understaffed and encountering massive cost problems. Costs are higher than ever before, including labor and supplies costs and restaurant owners are struggling to provide quality service. Where AI comes in, Aaron explains, is by automating order processes, delivering a personalized experience to customers even when the personnel isn't available.
“Commercial kitchens and hospitals throughout the United States have a 20 to 25% shortage of staff. That's one example. These franchisees are struggling to make money. So, wherever we can come in and help streamline that, help streamline those costs, give guests a better experience, create a better experience for the operators, that's where we fit the best.”
How is Rivalry Tech forging the future?
Aaron believes that Rivalry Tech is differentiating themselves from their competitors through integrating with artificial intelligence, robotics, and machine learning. At the heart of what they do is a desire to enhance food service for both customers and operators using kiosks, delivery robots, automated kitchens, and easy to use applications. What Rivalry is doing is all-encompassing, and Aaron is excited for this technology to change the entire landscape.
“We're modernizing that order fulfillment process. That's what differentiates us and it's pretty exciting to see how the whole landscape is shifting and just so rapidly right now. It's going to be totally different in the next 12 to 18 months.”