A recent article at foodtechconnect.com questions if Food is Unwinnable for Startups.
I believe we are on the verge of a global food revolution. Although some of the most well funded food tech startups are shutting down or reducing operations.
I think some of them just didn't realize how hard, working with food was going to be, and how much time it would take turning a profit.
In my opinion they're failing for 5 main reasons:
- They are in a hurry,
- They don't know the market well enough,
- They threw the towel too soon,
- And they tend to don't listen to the ones that were allready there : farmers, restaurants, retailers.
In this rush for disruption they forget that before them, the traditional food system players have made a lot of mistakes that, some times, could prevent them from failing.
In this article, Jennifer Goggin points out 3 main challenges that food tech Startups will face:
- Food distribution Logistics,
- Customer acquisition,
- The slow speed needed to change the food system.
As Jennifer Goggin states:
The “move fast and break things” mantra doesn’t work in food."