Wada FoodTech 2024: A Hot-Chain Total Solution
Jason Chen, Co-Founder and CEO of Wada FoodTech, is a distinguished leader with a master’s degree in Electronics Engineering from the University of Tokyo, an MBA from City University of Hong Kong, and advanced entrepreneurship training from UC Berkeley. A lifetime member of Beta Gamma Sigma and a Project Management Professional with Six Sigma Lean Black Belt certification, Jason is at the forefront of revolutionizing food delivery. Under his leadership, Wada FoodTech’s hot-chain solution integrates advanced AIoT technology to maintain food temperatures above 60 degrees throughout the logistics chain. This innovation ensures that customers receive hot, fresh bentos, enhancing their dining experience and providing restaurant partners with efficient, data-driven tools for optimizing operations and expanding sales channels. DeliveryRank finds out more.
Jason, how does your hot-chain technology keep food at 65°C throughout logistics and vending? What challenges did you encounter in developing this system?
This concept represents a new approach in the food industry, though it draws inspiration from traditional Hong Kong Dim Sum practices. While the hot chain concept might be gaining popularity in some Western countries, in Hong Kong, Dim Sum is typically heated using a steamer. This method ensures that the food quality and freshness are preserved at a high temperature.
At WadaFood Tech, we have modernized and commercialized this concept. We use our AIoT hot-chain total solution to ensure that food remains consistently above 60°C or 65°C throughout the entire logistics chain, including within our machines as the food waits for customers to pick it up. This ensures that from the chefs’ hands to the customers' hands, the temperature is maintained at the optimal level—60°C for Hong Kong standards and 65°C for Japanese standards.
However, the real challenge lies in the electronics, electricity, and mechanical design. Basic electronic and mechanical components tend to degrade in performance when the temperature exceeds 60°C. These components perform better at lower operating temperatures, which is why supercomputers and servers are kept in air-conditioned rooms. In our case, however, the system operates in what is essentially a sauna, consistently running under high temperatures. Therefore, we must design a system that is robust enough to withstand such conditions. This involves selecting electronic and mechanical components that can endure high temperatures and developing backup plans to enhance the overall resilience of the entire system.
Could you explain the fully automated, contactless 17-second grab-and-go feature? How do you ensure both speed and food safety in this process?
The 17 seconds is measured from the moment the customer completes the electronic payment to the delivery of the bentos. After the customer selects their bento and pays using a credit card or QR code, our machine dispenses a hot, ready-to-eat bento through the dispensing window. Customers can easily pick up their bento from the automated machine. Remarkably, there's no need to reheat or prepare the bento further—all meals are ready to eat immediately. This efficiency is particularly beneficial for busy individuals, whether in Hong Kong or Japan, who need a quick and convenient lunchtime solution.
How has reducing rent and labor costs affected the overall cost performance of your foodservice model? What additional benefits have you noticed from these savings?
When discussing labor costs or cost performance in the food industry, several key components must be considered:
Rent: This includes the cost of renting restaurant space or takeaway kiosks.
Labor Costs: Beyond just salaries, this encompasses management costs for overseeing staff and operations, including cashiers. In places like Hong Kong and Japan, it is particularly challenging to find and manage workers in the food industry, which adds to hidden costs.
Utilities and Depreciation: Electricity and the depreciation of restaurant equipment also contribute to overall costs. In Hong Kong and Japan, these costs for dine-in restaurants can amount to 40% to 50% of revenue.
On the other hand, although food delivery platforms provide an alternative distribution channel, their service fees, which can start at 35% of revenue in Hong Kong and exceed 40% in Japan, further strain financials.
These costs collectively impact the competitiveness of the food industry and the final price for consumers.
Our solution offers a more efficient distribution model for ready-to-eat meals through automation. We charge food and beverage companies around 20% to 25% for our service, significantly less than the typical industry costs. This allows businesses to manage distribution costs more effectively while keeping their prices competitive.
With over 700,000 bentos sold in Hong Kong and exports to Japan and Australia, what strategies have you used to successfully expand into these international markets? What are your plans for future expansion?
Let me explain our journey and insights. We began our operations in Hong Kong, and over the past four years, we have experienced significant fluctuations in Hong Kong's economy and dramatic changes in the food and beverage industry. From both successes and failures, we have learned valuable lessons.
Through our four years of operation in Hong Kong, we identified three important niche markets: hospitals, schools (including universities), and construction sites. Our focus has been on these markets because they provide a steady demand for quick and simple, yet quality meals. Unlike Michelin-starred restaurants, which cater to social dining experiences, our positioning is to offer an alternative for busy city dwellers who need convenient meal options.
In Japan and Australia, we have recognized critical pain points: labor shortages in Japan and high labor costs in developed countries like Australia and the US. Our solution addresses these challenges by providing a fully automated distribution process for the restaurant industry. We offer a platform that enables restaurants to distribute their meals more efficiently, mitigating labor-related issues and reducing costs.
Your system includes features like GPS tracking, humidity and temperature monitoring, and sales data analytics. How do these AIoT integrations improve the operational efficiency and customer experience for your vending machine service?
That's a great question. As a B2B platform, our revenue comes from restaurants, not end users. The features we offer—including GPS tracking, humidity and temperature monitoring, and sales data analytics—are designed specifically for our B2B clients, the restaurant owners.
These features provide significant value to restaurant owners. They can easily monitor the entire logistics chain, including the location of their lunch boxes, the number sold, and the temperature and humidity throughout the distribution process. This transparency helps them ensure the quality of their products and maintain confidence in using our solution.
Our sales data analytics offer additional insights, such as which types of bentos are popular and preferred by specific customer groups. For instance, we can identify that construction workers may prefer meat-based bentos over those with fish or vegetables. In office areas, our data can reveal demographics, like the percentage of male versus female customers, and preferences for certain types of bentos among different groups.
By providing these analytics, we help restaurant owners gain a deeper understanding of their products and customers. This enables them to better target their offerings and optimize their operations, ultimately giving them a competitive edge and improving their cost efficiency.
How do you envision Calidus contributing to regional revitalization, and what specific strategies do you employ to collaborate with local restaurants and communities?
Calidus is a name that combines elements from Latin and Japanese. "Cali" comes from Latin, meaning "hot," while "dus" is derived from Japanese, meaning "dispense" or "deliver." Thus, Calidus represents the concept of dispensing hot and warm bentos. The name is designed to be easy for Japanese people to pronounce, making it a fitting choice for our branding in Japan.
In the Japanese food and beverage industry, we are addressing the significant challenge of labor shortages. Small restaurants, in particular, struggle to survive due to the high demand for continuous operation—often requiring owners to work every day of the year to keep things running smoothly. Our automated solution offers these restaurants a practical way to expand their reach and operate more efficiently without the constant need for manual intervention.
For the end users, Japan is renowned for its culture of bentos and vending machines. The familiarity with both means we don’t need to educate customers about the concept. They are already accustomed to using vending machines and understand the value of quality bentos. Our automated machines seamlessly integrate into this culture, allowing users to easily operate the machine and pick up their bento efficiently.
We envision that our automated machines will help address the labor shortage issue, enhance safety standards, and provide a more efficient dining experience that aligns with Japan’s rich history of bentos and vending machines.
If you would like to find out more about Wada Bento, please visit https://wadafoodtech.com/ and https://calidus.jp/