Research has found that 86 percent of consumers are now using off premise services at least monthly. Houston restaurants need to factor in that trend and adapt to the shift in the market. Getty Images

The past year revealed a continued increase in the number of people ordering out at home or in the office, rather than dining in a restaurant.

Independent Market Alliance, a network of independent market share leaders in broadline foodservice distribution with 16 brands, found staggering statistics in their research demonstrating that 86 percent of consumers are now using off premise services at least monthly and a third are using it more than they did a year ago. This trend has driven a dramatic increase in third-party delivery service options, further facilitating growth.

Furthermore, consumers now want to better understand the full lifecycle of single-use packaging from how it was made and impact on the environment. With 24 percent of consumers always or usually considering sustainability when purchasing, sustainability has truly become a competitive focus that cannot be ignored, but not willing to compromise on functionality.

Adapting to consumer habits

Restaurants that have traditionally relied on a delivering an exceptional dine-in experience are now being faced with the challenge of creating that same customer experience through their packaging consumed offsite.

Diners expect to receive the same quality of food when they order delivery or take out as they would receive sitting down at a restaurant – from temperature, crispiness to the utensils needed to consume. Quality and the menu item's ability to travel well is important to consumers in the consumers decision-making process as 90 percent at least sometimes think about how well that particular food will travel, according to a recent study by the Cleveland Research Company Foodservice Council.

To combat this, restaurants operators are looking to new delivery solutions such as switching to temperature-control packaging with proper ventilation and carrying packages that separates different foods to prevent sogginess and loss of texture. This is key to succeeding the age of third-party delivery services, as nearly 60 percent of consumers would see the restaurant at least partially at fault if the delivered food is of reduced quality or took too long to arrive, per the study.

There is still a gap, in many instances, between the customer demand and traditional restaurant operators adapting to advanced packaging either due to cost of packaging or lack of product knowledge. National chains have begun to bring in third-party organizations with the core competencies in off-premise product knowledge for guidance and solutions as to what the offsite dining experience could look like. IMA has become a resource to help provide more understanding between cuisine type and the right packaging.

Third-party delivery and packaging innovation

While traditional sit-down restaurants and even their fast-casual counterparts haven't always had the at-home or offsite experience in mind, the rise of third-party delivery systems has led to additional considerations across all operators. In fact, the Cleveland Research Council's Online Food Consumer Survey (Gojak, et al., 2019) shows that 50% of U.S. consumers surveyed have used a restaurant delivery service at least once.

Customers who see that their food provider understands that safety is a priority have increased loyalty to establishment. As a result, the rise of tamper-free packaging has become a staple in food service within the past 18 months albeit providing the security through a label, a stapled bag or even more advanced with plastic seals

Tamper-free food packaging is taking on a higher profile as consumers fret about the possibility of delivery passing through hands of "touchy" third-party workers. Through simple innovations such as seals and button-top lids, tamper-free packaging goes a long way to give consumers peace of mind and demonstrate that operators are concerned about their well-being.

Bottom line, delivery demand is growing given structural tailwinds from shifting consumer demand for convenience and off-site consumption, and operators for both fast casual and traditionally dine-in restaurants must adapt.

Factoring in sustainability 

Sustainability is a frequently used buzzword in the foodservice industry that many do not fully understand. While sustainable and biodegradable are often used interchangeably in the foodservice industry, the word "biodegradable" has been greenwashed and actually means the package will degrade sometime in the next 500 years not what most consumers assume as compostable meaning it will biodegrade between 90 and 120 days

IMA and other industry leaders typically define sustainability of products by items that can be broken down within 90 and 120 days and are made of substrates that can be easily recycled by the average consumer. Many are now looking for ways now to develop these products to be truly sustainable in a way that is cost efficient enough to appeal to operators and help stop this greenwashing

Because operators don't always see the added value of innovative packaging, the additional price tag that comes with also ensuring that packaging is sustainable prevents wider use of sustainable materials in today's take out landscape. For that reason, most operators are just beginning to truly explore the cross over between sustainability and customer experience.

In 2020, operators will still find the greatest success from targeting the customer experience, but as researchers invest in affordable solutions, sustainability in single-use packaging will continue to gain importance.

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Stephanie Nicholson is the senior director of business development and national accounts for Independent Marketing Alliance, a network of independent market share leaders in foodservice distribution with 16 brands.

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Texas-based 'DoorDash for laundry' startup tumbles into Houston market

No Scrubs

Laundry may seem like an endless task that piles up, but a new service offers a solution to overwhelmed Houston families.

NoScrubs, an Austin-based home laundry pickup service has just expanded to Houston. Described by the company as "DoorDash — but for laundry," they wash customer's clothes at local laundromats and return them the same day, folded and ready to be put away.

The service took off like gangbusters in Austin, making an expansion to the state's largest city an obvious choice. It's not universal coverage just yet.

For now, only the following ZIP codes have NoScrubs service available: 77002, 77004, 77005, 77006, 77007, 77008, 77009, 77010, 77018, 77019, 77024, 77025, 77027, 77046, 77056, 77057, 77081, 77098, 77401, 77030, 77003.

A single pickup starts at $40 for 20 pounds of laundry, while the basic monthly subscription is $60 for two pickups. All services use hypoallergenic detergents.

The average American family spends about 240 hours a year on laundry, making it a very time-consuming chore. For people with disabilities, difficult work schedules, and other circumstances, it can be a real help, says co-founder Matt O'Connor.

"Some of our favorite customer stories simply revolve around saving people time when they have something challenging going on," he writes in an email. "For example, one customer reviewed NoScrubs saying 'So happy I could cry! (Partially because I'm pregnant and my emotions are heightened!)...1000% recommend if you have time restrictions or physical restrictions! ' So, whether it’s saving time, the affordability, or the pleasantly surprising turnaround time, NoScrubs has a variety of benefits for any customer."

NoScrubs is also a new opportunity for Houston's gig workers. Because there are no passengers, it can be a safer alternative to driving ride share for women and other people apprehensive about having strangers in their cars. As NoScrubs partners with local laundromats, drivers are also going to centralized locations rather than all over the map, leading to less wear and tear on their cars. The laundromats benefit as well, since NoScrubs loads are ones that would otherwise be done at home.

"Our model makes driving a tiny fraction of the time, so folks who don’t want to wear down their vehicles and spend a ton on gas love working at NoScrubs," added O'Connor.

Here's what's next for Houston’s Tempest Droneworx after SXSW Speed Pitch win

winner, winner

It’s not easy to be a standout at South by Southwest, especially during SXSW Interactive, which is the subsection of the festival that focuses on new media, technology and entrepreneurship.

But it’s even more difficult to win at SXSW Pitch, the competition for startups and entrepreneurs that showcases innovative new technology to a panel of industry experts, high-profile media professionals, venture capital investor, and angel investors.

Tempest Droneworx, a Houston-based company that provides real-time intelligence collected through drones, robots and sensors, did just that last month, taking home the Best Speed Pitch award. It was also named a finalist and alternate in the full SXSW Pitch competition. The company is known for it flagship product, Harbinger, a software solution that agnostically gathers data at virtually any scale and presents that data in easy-to-understand visualizations using a video game engine.

Tempest CEO and founder Ty Audronis says his company won based on its merits and the impact it’s making and will make on the world. Audronis founded the company after his hometown of Paradise, California, was destroyed by a wildfire in 2018.

“(SXSW) was a huge moment for our team,” says Audronis, whose background is in science visualization, data visualization and visual effects for the movie industry. “This is about what everyone at Tempest Droneworx has created, and our mission to make sure that issues—like the one that befell Paradise, California, my hometown, and the inspiration for our Harbinger software—don’t become the full-blown (disasters)."

Audronis shares that the company is working to release an agriculture beta this summer and is raising a Tactical Funding Increase (TACFI) round through the AFWERX, the Department of the Air Force’s innovation arm.

Tempest’s Harbinger is impressing investors and clients alike, but what is it exactly and what does it do?

The best way to explain the solution is in how it’s redefining the agriculture space. Tempest has deployed the product at Grand Farm in North Dakota, an agtech operation that seeks to promote sustainable, climate-resilient farming using applied technology.

“We decided to go down the road of agriculture,” Audronis says. “We're currently installed at the Grand Farm in North Dakota, which is a farm that is very closely tied to Microsoft. They do third-party verification of new soils and fertilizers, and we are helping them with visualizing the data that they're getting from their sensors.”

Additionally, Audronis and his co-founder and wife, Dana Abramovitz, spearhead a pilot program at Doubting Thomas Farms, an organic farm in Minnesota, where the company has installed 22 in-ground sensors that can measure volatile organic emissions.

To further optimize their solutions approach, Tempest Droneworx will also train artificial intelligence to look for overspray from neighboring non-organic farms. This will help maintain organic certification and reduce insurance claims for lost crops.

“This will save Doubting Thomas Farms and other organic farms a boatload of cash,” Audronis says.

During an exclusive tour with InnovationMap, Audronis pulled up a live feed of sensors buried around the Minnesota farm up on the conference room display. The feed did, in fact, look like a video game, with the sensors giving real-time data about the farm’s temperature, moisture level, humidity, CO2 and nitrogen.

Harbinger will collect, extract and extrapolate all of the data and later provide a digital almanac for farmers to track the history of their crops.

As the office tour continued, Audronis pointed out the company’s expanding partnership with the U.S. Military.

As a retired U.S. Navy veteran with over two decades of experience designing, building and piloting drones, Audronis understands that Harbinger has multiple military applications that will ultimately save lives—a core tenet of his company’s mission.

The company has launched a robotic dog known as UBU, developed by Tempest partner Ghost Robotics, that enables faster, more accurate ground surveys for explosive devices. This task previously required multiple airmen and hours to complete, Audronis says.

With agriculture and military initiatives in progress and making an impact, Audronis hopes to one day bring his original vision for Tempest Droneworx and Harbinger full circle by getting the call to combat California’s next catastrophic wildfire.

“We're proving our technology in military and in agriculture right now,” Audronis says. “Eventually, I would like to still save some lives with wildfire. That's really the purpose of the company … Whether it's agriculture, smart cities, the bottom line is saving lives through real-time situational awareness."

New energy innovation and coworking spaces open at the Ion

moving in

Houston-based Occidental officially opened its new Oxy Innovation Center with a ribbon cutting at the Ion last week.

The opening reflects Oxy and the Ion's "shared commitment to advancing technology and accelerating a lower-carbon future," according to an announcement from the Ion.

Oxy, which was named a corporate partner of the Ion in 2023, now has nearly 6,500 square feet on the fourth floor of the Ion. Rice University and the Rice Real Estate Company announced the lease of the additional space last year, along with agreements with Fathom Fund and Activate.

At the time, the leases brought the Ion's occupancy up to 90 percent.

Additionally, New York-based Industrious plans to launch its coworking space at the Ion on May 8. The company was tapped as the new operator of the Ion’s 86,000-square-foot coworking space in Midtown in January.

Dallas-based Common Desk previously operated the space, which was expanded by 50 percent in 2023 to 86,000 square feet.

CBRE agreed to acquire Industrious in a deal valued at $400 million earlier this year. Industrious also operates another local coworking space is at 1301 McKinney St.

Industrious will host a launch party celebrating the new location Thursday, May 8. Find more information here.


Oxy Innovation Center. Photo via LinkedIn.