Slice Podcast S2E5: Labor, Logistics, and the Next Food Frontier – How Cam Crowder Is Rethinking the Stack
In a world where many venture capitalists shy away from the complexities of the food industry, Cam Crowder and Shane Larisey are charting a different course with Redstick Ventures. This early-stage fund is laser-focused on transforming the food ecosystem, addressing challenges from labor shortages to supply chain inefficiencies.
Cam Crowder's journey into venture capital is rooted in hands-on experience. As a former operator of six Tim Hortons franchises, he managed over 200 employees and faced firsthand the operational hurdles of the food industry. These challenges sparked his interest in solutions that could alleviate such pain points, leading him to angel investing and eventually co-founding Redstick Ventures. His deep understanding of the industry's intricacies informs the fund's investment strategy, focusing on areas like food waste reduction, packaging innovation, and food technology.
Shane Larisey brings a complementary perspective to Redstick Ventures. With a background in hardware entrepreneurship and engineering, he understands the technical demands of building scalable solutions. His experience in manufacturing and supply chain management allows the fund to assess and support startups that operate at the intersection of software and hardware within the food industry.
The food industry continues to grapple with significant labor challenges. As of Q1 2024, staffing levels in food service remain 2.1% below pre-pandemic levels, representing approximately 270,000 unfilled positions nationwide. According to the National Restaurant Association's 2024 State of the Industry Report, 62% of food operators cite staffing as their top challenge, up from 57% in 2023.
The labor shortage has driven average hourly wages in food service up by 23% since 2019, far outpacing the industry's traditional growth rate. This wage inflation has compressed already thin margins, with the average full-service restaurant seeing profit margins decrease from 6.2% in 2019 to 4.7% in early 2024.
Redstick Ventures sees these challenges as opportunities to invest in automation and technologies that can streamline operations, reduce human error, and lower costs. The food automation technology market is projected to reach $35.7 billion by 2027, growing at a CAGR of 9.5% from 2024.
Key growth areas include:
* Kitchen Automation: Robotics for food preparation has seen investment increase by 78% in 2023-2024 compared to the previous year
* AI-Driven Inventory Management: Reducing food waste by 30-50% in early adopters
* Smart POS Systems: Integrating ordering, payment, and loyalty programs while providing actionable data insights
While corporate venture funds like Tyson Foods and Chipotle have entered the food tech space, Redstick Ventures differentiates itself by investing at earlier stages and taking calculated risks on emerging technologies. In 2023-2024, corporate food industry venture investment totaled $3.2 billion, but focused primarily on later-stage companies with proven revenue models.
Redstick's operator-led approach provides unique insights and support founders at the earliest stages, making them a valuable partner in the food tech ecosystem.
Beyond labor, Redstick is focused on supply chain resilience. COVID-19 exposed critical vulnerabilities, and recent geopolitical tensions have further strained global food logistics. In response, 76% of food companies are now pursuing some form of supply chain localization, creating opportunities for startups that enable:
* Regional processing and distribution hubs
* Farm-to-table logistics optimization
* Shelf-life extension technologies
* Alternative protein production closer to consumption points
Cam and Shane are not just investors; they're catalysts for change in the food industry. By leveraging their combined expertise, they're identifying and supporting startups that have the potential to revolutionize how we produce, distribute, and consume food.
With food service technology adoption accelerating, 93% of food operators plan to implement or upgrade their technology stack in 2024-2025 according to Square's Future of Restaurants report. Redstick Ventures is positioned at the intersection of critical industry needs and emerging technology solutions.
Their work is a testament to the impact that focused, knowledgeable, and passionate investors can have on an industry ripe for innovation.
Special thanks to Nakul for introducing us to Cam!!
To hear more, visit slicefund.substack.com