How AI Can Reduce Food Waste at Restaurants

Today, food waste in consumer-facing businesses is largely caused by operational inefficiencies within foodservice supply chains, such as difficulty forecasting and inefficient preparation techniques, in addition to plate waste. Chain restaurants often overbuy food and over-prep unordered food to avoid missing revenue opportunities. Misaligned production not only results in large volumes of food waste, but also creates major financial losses, given that food costs represent on average 30-50% of a restaurant’s total spend. By improving these operational inefficiencies within this supply chain, food retailers have an opportunity to achieve a net benefit of over $5 billion.[2]

What is needed to improve operations?

Closed Loop Ventures Group––the venture capital arm of Closed Loop Partners, a firm focused on building the circular economy––recently led the seed investment round in ClearCOGS, a leading provider of AI-powered predictive analytics for restaurants, for their platform solution that supports consumer-facing businesses in improving their operations and mitigating food waste.

ClearCOGS offers a comprehensive AI-powered demand planning and data analytics platform for restaurant operators and foodservice businesses, providing exceptional accuracy and immediate benefit to bottom lines. They analyze historical transactions and recipe data provided by the restaurant to generate precise, item-level forecasts that guide prep schedules, ordering and staffing decisions. Their integration with Toast, a leading cloud-based restaurant management software company, offers Toast customers with ClearCOGS accounts a one-click integration for their freemium offerings.

Through their solution, restaurants can make significant improvements to their operations and supply chains, streamlining production and inventory to more accurately meet demand and mitigate the inaccuracies that result in financial and environmental losses.

And the results speak for themselves.

“We were shocked that literally overnight we were able to add 2% to the bottom line with no operational changes.“ Goop Kitchen, Los Angeles, CA

“ClearCOGS reports are more accurate, saving as much as three racks of ribs daily, or more.” Red White & Que, Green Brook, NJ

“Implementing ClearCOGS was an effortless experience. The setup was straightforward, and the team at ClearCOGS provided exceptional support and resources, making it easy to customize the solution to our specific needs.” Blue Square Pizza, Hopkinton, MA

What’s their Special Sauce?

We invested in ClearCOGS knowing that the challenges in restaurants are best understood by those who have worked in them. Matt Wampler, CEO and Co-Founder of ClearCOGS, knows intimately the struggles of running a small business.

At 21, he took on the challenge of turning around a struggling sandwich shop. He put in the hours to successfully turn that around and scale other locations before deciding that helping other owners better manage their own operations was his next challenge. He is perfectly paired with Osa Osarenkhoe, CTO and Co-Founder of ClearCOGS, who studied Electrical Engineering (BA) and Computer Engineering (MA) before working in tech and launching his first start up.

We look forward to seeing what the team will unlock for the restaurant industry, tackling a major source of waste that––when addressed––can result in significant cost savings as valuable materials are diverted from landfill. Closed Loop Partners is delighted to work with ClearCOGS on scaling their solution, preventing food waste at restaurants.

If you are interested in talking more about food waste or getting in touch with ClearCOGS, please reach out.

About Closed Loop Ventures Group at Closed Loop Partners

Closed Loop Partners is at the forefront of building the circular economy. The firm is comprised of three key businesses that create a platform for systems change: an investment group managing venture capital, buyout private equity and catalytic private credit investment strategies, Closed Loop Capital Management; an innovation center, the Center for the Circular Economy; and an operating group, Closed Loop Builders.

The firm’s venture capital strategy, the Closed Loop Ventures Group, has been investing early-stage capital into companies developing breakthrough circular solutions for foundational materials that underpin and significantly influence a wide array of vital sectors of the economy. These materials include organics, minerals, polymers and water. Closed Loop Ventures Group partners with founders and companies who rethink how products are designed, manufactured, consumed and recovered, with the shared vision of reimagining supply chains and eliminating waste. Closed Loop Partners is based in New York City and is a registered B Corp.

To learn about the Closed Loop Ventures Group and apply for funding, visit https://www.closedlooppartners.com/capital-management/apply-for-funding/ventures/

About ClearCOGS

ClearCOGS is an AI-driven forecasting solution designed specifically for restaurant operations. Its predictive analytics simplify critical daily decisions around food prep, ordering, and staffing—helping restaurants reduce food waste, improve operational efficiency, and maximize profitability. To learn more, visit www.clearcogs.com.da

Disclosure

This publication is for informational purposes only, and nothing contained herein constitutes an offer to sell or a solicitation of an offer to buy any interest in any investment vehicle managed by Closed Loop Capital Management or any company in which Closed Loop Capital Management or its affiliates have invested. An offer or solicitation will be made only through a final private placement memorandum, subscription agreement and other related documents with respect to a particular investment opportunity and will be subject to the terms and conditions contained in such documents, including the qualifications necessary to become an investor. Closed Loop Capital Management does not utilize its website to provide investment or other advice, and nothing contained herein constitutes a comprehensive or complete statement of the matters discussed or the law relating thereto. Information provided reflects Closed Loop Capital Management’s views as of a particular time and are subject to change without notice. You should obtain relevant and specific professional advice before making any investment decision. Certain information on this Website may contain forward-looking statements, which are subject to risks and uncertainties and speak only as of the date on which they are made. The words “believe”, “expect”, “anticipate”, “optimistic”, “intend”, “aim”, “will” or similar expressions are intended to identify forward-looking statements. Closed Loop Capital Management undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future developments or otherwise. Past performance is not indicative of future results; no representation is being made that any investment or transaction will or is likely to achieve profits or losses similar to those achieved in the past, or that significant losses will be avoided.

[1] ReFed – https://refed.org/food-waste/the-problem

[2] ReFed – https://insights-engine.refed.org/solution-database?dataView=total&indicator=us-dollars-profit&stakeholder=foodservice