Why Tech-Focused Fast Casuals are Attractive to Investment Firms

Healthy-halo fast casual brands are not only on the rise because they fit the lifestyle of so many consumers looking to maintain a healthier diet, but most of these concepts have also seamlessly incorporated technology.

One of these brands sweetgreen, a make your own salad chain, is using technology to enhance the customer experience.

"Nearly half of Sweetgreen’s customer orders are placed through its app; that data is used to tweak menu offerings and make personalized recommendations," writes "Wired."

As customers gravitate more to online ordering, the restaurants with these systems in place in-house are at an advantage. Sweetgreen also uses this data to determine how much each store should order of each ingredient. So, this helps to keep food waste at a minimum.

Another up and coming healthy-focused restaurant start-up Joe & Juice is expected to IPO later this year after receiving millions in investment.

The restaurants ahead of the curve when it comes to artificial intelligence and data collection have become the most attractive to investors.

“The next five years will be more disruptive to food service operators than the last 50,” says restaurant consultant Aaron Allen, pointing to the boom in online ordering, which is expected to grow nearly four times faster than the rest of the restaurant industry, and in delivery-only “ghost kitchens.” VCs are betting that diners are willing to trade physical restaurants—and personal data—for AI-extracted “content," writes "Wired."

Read more about the venture firms investing in tech-focused fast casual brands at "Wired."

We have been following sweetgreen since it was founded in 2007. In 2016, the brand moved its headquarters to LA, a strategic move to be closer to the tech industry.

In a recent episode of The Barron Report, Host Paul Barron outlines why he thinks sweetgreen has become the next fast casual unicorn. Watch the video below to learn more.