Houston's busiest Chick-fil-A flies solo with new driverless delivery

Chick-fil-A has partnered with Faction, a California-based company that develops autonomous fleets. Photo courtesy of Faction

This article was written by CultureMap Columnist Ken Hoffman and originally appeared on CultureMap's Hoffman's Houston editorial series.

Next time you order “curbside delivery” from the Chick-fil-A on Kirby Drive and the Southwest Freeway, one of the top performing Chick-fil-A’s in the country, don’t be surprised if your Spicy Chicken Sandwich and waffle fries are delivered by a driverless three-wheeled electric vehicle that looks like a cross between a Big Wheels kiddie car and the Mars Rover.

It’s a first in Houston. Chick-fil-A has partnered with Faction, a California-based company that develops autonomous (driverless) fleets. Earlier this week I met with Ain McKendrick, the founder and CEO of Faction, who explained how Chick-fil-A’s futuristic curbside delivery system works.

The key word is curbside. Unlike popular food deliverers like DoorDash and UberEats, Faction’s robotic vehicles don’t involve a human driver who will bring the food to your door, with the expectation of receiving a tip.

When a Faction vehicle delivers your food, you will get a text that the vehicle has arrived, and you’ll walk to the curb and pick up your food from the car that’s parked in front of your house. Throw some clothes on, please. The neighbors may see you.

When you order from the Kirby/Southwest Chick-fil-A on the Chick-fil-A app, and click on delivery, you’ll be given a choice of how you want your food brought to your house. You can still request DoorDash or another service. If you choose “curbside delivery,” watch for a Faction vehicle pulling up in front of your house. You’ll pop open the storage door, open the separate boxes that keep your sandwiches and fries toasty and your soft drinks cold, and run back into your house to dig in.

Right now, the Kirby/Southwest Freeway Chick-fil-A is using two Faction vehicles to supplement the regular delivery cars during crush time. Faction promises (they couch the claim by saying “estimates”) you’ll get your food within 30 minutes. Currently human “supervisors” are doing ride-alongs while the vehicles are mapping out the restaurant’s four-mile delivery area. Faction follows its vehicles’ progress on a video board at home base making sure each delivery goes right.

The electric vehicles are licensed and insured and can do 75 miles-per-hour on highways. But because of Houston’s notorious traffic, Faction has programmed the vehicles to stay on surface streets and below the speed limit. That’s how I get around, too. I got tired of that inexplicable traffic jam on the Southwest Freeway when it bends toward downtown.

McKendrick said the driverless vehicles will have memorized Houston streets well enough by August to operate without human supervisors.

Will customers be OK with their Chick-fil-A food delivered by driverless vehicles? So far it’s not a problem. In fact, McKendrick said some customers wait outside with their phone cameras ready so they can share photos of the delivery. Sharing their waffle fries is a different story.

I’m a skeptic when it comes to electric and driverless vehicles. I asked McKendrick …

What happens if a dog runs in front of a Faction vehicle? He said it will automatically stop for the pooch.

What if there’s a children’s birthday party on my block and there’s no parking space in front of my house? He said the vehicle will pull to the side and flash warning lights until the customer picks up their food.

So what’s in it for Chick-fil-A to partner with Faction? Kirby/Southwest Freeway Chick-fil-A owner Jesse Chaluh said it’s a more efficient way of offering delivery service to his customers. He thinks that his restaurant eventually will require five or more Faction vehicles to handle the demand.

While each vehicle currently delivers one order to one customer per run, eventually the technology will improve where each vehicle will be able to make several deliveries with each foray onto the streets of Houston.

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Houston unicorn closes $421M to fuel first phase of flagship energy project

Heating Up

Houston geothermal unicorn Fervo Energy has closed $421 million in non-recourse debt financing for the first phase of its flagship Cape Station project in Beaver County, Utah.

Fervo believes Cape Station can meet the needs of surging power demand from data centers, domestic manufacturing and an energy market aiming to use clean and reliable power. According to the company, Cape Station will begin delivering its first power to the grid this year and is expected to reach approximately 100 megwatts of operating capacity by early 2027. Fervo added that it plans to scale to 500 megawatts.

The $421 million financing package includes a $309 million construction-to-term loan, a $61 million tax credit bridge loan, and a $51 million letter of credit facility. The facilities will fund the remaining construction costs for the first phase of Cape Station, and will also support the project’s counterparty credit support requirements.

Coordinating lead arrangers include Barclays, BBVA, HSBC, MUFG, RBC and Société Générale, with additional participation from Bank of America, J.P. Morgan and Sumitomo Mitsui Trust Bank, Limited, New York Branch.

“As demand for firm, clean, affordable power accelerates, EGS (Enhanced Geothermal Systems) is set to become a core energy asset class for infrastructure lenders,” Sean Pollock, managing director, project Finance at RBC Capital Markets, said in a news release. “Fervo is pioneering this step change with Cape Station, a vital contribution to American energy security that RBC is proud to support.”

The oversubscribed financing marks Cape Station’s shift from early-stage and bridge funding to a long-term, non-recourse capital structure, according to the news release.

“Non-recourse financing has historically been considered out of reach for first-of-a-kind projects,” David Ulrey, CFO of Fervo Energy, said in a news release. “Cape Station disrupts that narrative. With proven oil and gas technology paired with AI-enabled drilling and exploration, robust commercial offtake, operational consistency, and an unrelenting focus on health and safety, we have shown that EGS is a highly bankable asset class.”

Fervo continues to be one of the top-funded startups in the Houston area. The company has raised about $1.5 billion prior to the latest $421 million. It also closed a $462 million Series E in December.

According to Axios Pro, Fervo filed for an IPO that would value the company between $2 billion and $3 billion in January.

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This article first appeared on EnergyCapitalHTX.com.

Houston food giant Sysco to acquire competitor in $29 billion deal

Mergers & Acquisitions

Sysco, the nation's largest food distributor, will acquire supplier Restaurant Depot in a deal worth more than $29 billion.

The acquisition would create a closer link between Sysco and its customers that right now turn to Restaurant Depot for supplies needed quickly in an industry segment known as “cash-and-carry wholesale.”

Sysco, based in Houston, serves more than 700,000 restaurants, hospitals, schools, and hotels, supplying them with everything from butter and eggs to napkins. Those goods are typically acquired ahead of time based on how much traffic that restaurants typically see.

Restaurant Depot offers memberships to mom-and-pop restaurants and other businesses, giving them access to warehouses stocked with supplies for when they run short of what they've purchased from suppliers like Sysco.

It is a fast growing and high-margin segment that will likely mean thousands of restaurants will rely increasingly on Sysco for day-to-day needs.

Restaurant Depot shareholders will receive $21.6 billion in cash and 91.5 million Sysco shares. Based on Sysco’s closing share price of $81.80 as of March 27, 2026, the deal has an enterprise value of about $29.1 billion.

Restaurant Depot was founded in Brooklyn in 1976. The family-run business then known as Jetro Restaurant Depot, has become the nation's largest cash-and-carry wholesaler.

The boards of both companies have approved the acquisition, but it would still need regulatory approval.

Shares of Sysco Corp. tumbled 13% Monday to $71.26, an initial decline some industry analysts expected given the cost of the deal.

Houston researcher builds radar to make self-driving cars safer

eyes on the road

A Rice University researcher is giving autonomous vehicles an “extra set of eyes.”

Current autonomous vehicles (AVs) can have an incomplete view of their surroundings, and challenges like pedestrian movement, low-light conditions and adverse weather only compound these visibility limitations.

Kun Woo Cho, a postdoctoral researcher in the lab of Rice professor of electrical and computer engineering Ashutosh Sabharwal, has developed EyeDAR to help address such issues and enhance the vehicles’ sensing accuracy. Her research was supported in part by the National Science Foundation.

The EyeDAR is an orange-sized, low-power, millimeter-wave radar that could be placed at streetlights and intersections. Its design was inspired by that of the human eye. Researchers envision that the low-cost sensors could help ensure that AVs always pick up on emergent obstacles, even when the vehicles are not within proper range for their onboard sensors and when visibility is limited.

“Current automotive sensor systems like cameras and lidar struggle with poor visibility such as you would encounter due to rain or fog or in low-lighting conditions,” Cho said in a news release. “Radar, on the other hand, operates reliably in all weather and lighting conditions and can even see through obstacles.”

Signals from a typical radar system scatter when they encounter an obstacle. Some of the signal is reflected back to the source, but most of it is often lost. In the case of AVs, this means that "pedestrians emerging from behind large vehicles, cars creeping forward at intersections or cyclists approaching at odd angles can easily go unnoticed," according to Rice.

EyeDAR, however, works to capture lost radar reflections, determine their direction and report them back to the AV in a sequence of 0s and 1s.

“Like blinking Morse code,” Cho added. “EyeDAR is a talking sensor⎯it is a first instance of integrating radar sensing and communication functionality in a single design.”

After testing, EyeDAR was able to resolve target directions 200 times faster than conventional radar designs.

While EyeDAR currently targets risks associated with AVs, particularly in high-traffic urban areas, researchers also believe the technology behind it could complement artificial intelligence efforts and be integrated into robots, drones and wearable platforms.

“EyeDAR is an example of what I like to call ‘analog computing,’” Cho added in the release. “Over the past two decades, people have been focusing on the digital and software side of computation, and the analog, hardware side has been lagging behind. I want to explore this overlooked analog design space.”

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