Starbucks is doubling down on tech through a deal with a startup that previously ran waiter-free restaurants
- Starbucks announced a new deal with tech startup Brightloom on Monday.
- The coffee giant granted Brightloom a license for elements of the coffee giant's software in exchange for an equity stake in the startup and a seat on its board of directors.
- Brightloom - called Eatsa prior to its rebranding on Monday - is a restaurant tech company that previously operated a chain of restaurants where customers ordered via kiosk and did not need to interact with any employees.
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Starbucks has a new deal with a tech startup that previously operated restaurants with zero human interaction.
On Monday, Starbucks announced it is taking an equity stake in restaurant tech company Brightloom. Starbucks has granted Brightloom a license for elements of the coffee giant's software in exchange for an equity stake in the startup - which was called Eatsa until it announced its rebranding on Monday - and a seat on its board of directors.
"It really is about the opportunity to change an entire industry. ... Any restaurant brand now realizes that for them to be in the game, it's no longer a 'nice to have it' - they have to have a robust digital platform," Brightloom CEO Adam Brotman told Business Insider.
Brightloom's initial work with Starbucks will focus on providing software for the company's license partners around the world.
Digital has been a major sales driver and focus at Starbucks over the last decade. However, international locations still lack the capabilities of company-owned stores in the US. Currently, fewer than half of the more than 80 countries that Starbucks operates in have access to the chain's mobile app. Only eight countries allow customers to order and pay via app.
Two international franchisees, Alsea and Alshaya, are part of Brightloom's most recent $30 million Series B funding round. The round, also announced on Monday, was led by Tao Capital Partners and Valor Equity Partners.
In March, Starbucks announced a $100 million investment in Valor Siren Ventures (VSV), a new fund managed by Valor Equity Partners and focused on food and retail startups. At the time, Starbucks said that it would also explore "direct commercial arrangements" with startups that VSV invests in.
Brightloom, then Eatsa, was founded in 2015. At the time, the company operated a chain of restaurants where customers did not have to interact with any employees. Eatsa functioned essentially like a vending machine or a high-tech automat, with customers ordering via kiosk and meals appearing in cubbies without the need for employee interaction.
At its peak, there were Eatsa locations in San Francisco, New York City, and Washington, DC. In 2018, the company closed the final two Eatsa locations to focus on restaurant technology and software.
Read more: We visited a restaurant that's powered by machines instead of people - here's what it's like
Brotman, who previously served as a Starbucks executive from 2009 to 2018, joined the company in April after being approached by Jon Shulkin, the executive chairman of Brightloom, and Starbucks CEO Kevin Johnson.
"They confided to me that they were exploring a relationship to do something really interesting and historic around taking the Starbucks digital flywheel technology and combining it with what Brightloom has, creating the world's first end-to-end digital flywheel platform. ... It was an opportunity I couldn't pass up," Brotman said.
While Brightloom's immediate focus will be on Starbucks franchise partners, the company plans to offer services to all types of restaurants.