1 00:00:02,520 --> 00:00:06,840 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:07,440 --> 00:00:11,280 Speaker 2: This is Bloomberg Business Week with Carol Messer and Tim 3 00:00:11,320 --> 00:00:13,640 Speaker 2: Stenebek on Bloomberg Radio. 4 00:00:14,000 --> 00:00:17,279 Speaker 3: I was out in California last week. I know you 5 00:00:17,320 --> 00:00:20,040 Speaker 3: know that because you were filling in for Yeah, Carol 6 00:00:20,079 --> 00:00:21,000 Speaker 3: and me here at the studio. 7 00:00:21,079 --> 00:00:23,120 Speaker 4: It was super fun, actually good. 8 00:00:23,320 --> 00:00:26,360 Speaker 3: It's always fun. It's a fun show. We have a 9 00:00:26,400 --> 00:00:28,440 Speaker 3: lot of fun. We got a great team also. That 10 00:00:28,480 --> 00:00:31,640 Speaker 3: makes it really fun in the control room right now. 11 00:00:32,720 --> 00:00:37,080 Speaker 3: But we left the event Bloomberg screen time, and I 12 00:00:37,159 --> 00:00:40,040 Speaker 3: was walking in Hollywood, on the sidewalks of Hollywood, California, 13 00:00:40,120 --> 00:00:42,640 Speaker 3: with my brother, walking to his car, because that's what 14 00:00:42,720 --> 00:00:46,239 Speaker 3: you do in La. My brother, Michael, he's funny. He's 15 00:00:46,360 --> 00:00:49,840 Speaker 3: very funny. I'm glad you know him. He is very funny. 16 00:00:49,840 --> 00:00:52,720 Speaker 3: And we ran into this little robot on the sidewalk 17 00:00:53,720 --> 00:00:56,480 Speaker 3: and it was not something you see in New York City. 18 00:00:56,560 --> 00:00:59,920 Speaker 4: So for me, did you take a bat? 19 00:01:00,560 --> 00:01:03,880 Speaker 3: No, it's very rude, I know, but it's because there's 20 00:01:03,880 --> 00:01:06,000 Speaker 3: no person inside of it doesn't mean you should take 21 00:01:06,040 --> 00:01:06,520 Speaker 3: it back to you. 22 00:01:06,600 --> 00:01:09,000 Speaker 4: Didn't put anything past an American anyway. 23 00:01:09,160 --> 00:01:11,240 Speaker 3: He was I've seen him on those on the streets 24 00:01:11,240 --> 00:01:14,440 Speaker 3: of Santa Monica before, but never Hollywood. So this is 25 00:01:14,440 --> 00:01:16,319 Speaker 3: the first time seeing it on the sidewalks of Hollywood 26 00:01:17,040 --> 00:01:20,120 Speaker 3: and it was delivering something to somebody. Yeah, and I 27 00:01:20,160 --> 00:01:23,639 Speaker 3: don't know if it was a robot from our next guest, 28 00:01:24,319 --> 00:01:27,800 Speaker 3: co founder and CEO of Serve Robotics, Ali Kashani, who 29 00:01:27,880 --> 00:01:30,759 Speaker 3: joins us from Redwood City, California, which is the headquarters 30 00:01:30,760 --> 00:01:33,480 Speaker 3: of Serve Robotics. Ali, was this one of your robots 31 00:01:33,480 --> 00:01:35,959 Speaker 3: that looked exactly like the ones that I see on 32 00:01:36,000 --> 00:01:37,280 Speaker 3: your website? Was this one of yours? 33 00:01:38,120 --> 00:01:40,600 Speaker 1: I'm pretty sure they're very unique. I'm Katie, Come on, 34 00:01:40,640 --> 00:01:43,000 Speaker 1: that's your first reaction hearing about robots. 35 00:01:43,120 --> 00:01:46,160 Speaker 4: I'm sorry. So for a little bit of context, I 36 00:01:46,200 --> 00:01:49,360 Speaker 4: had Ali Kashani on the TV show a couple of 37 00:01:49,360 --> 00:01:51,480 Speaker 4: weeks ago, probably a month or two ago at this point, 38 00:01:51,520 --> 00:01:54,720 Speaker 4: and Ali, I did ask you that how often people 39 00:01:55,480 --> 00:01:58,880 Speaker 4: attack these robots and you said not too often. 40 00:01:59,760 --> 00:02:02,800 Speaker 1: Yeah, yes, that's right. It's they're actually kind of like 41 00:02:02,840 --> 00:02:04,880 Speaker 1: a mailbox at this point. They're just doing their thing 42 00:02:04,920 --> 00:02:08,880 Speaker 1: and people just pass by. Sometimes people can be curious, 43 00:02:08,960 --> 00:02:12,520 Speaker 1: especially the children, but overall they're very well received and 44 00:02:12,639 --> 00:02:14,240 Speaker 1: accepted in the community. 45 00:02:14,480 --> 00:02:16,480 Speaker 3: Well, that had a camera on it, and my brother said, 46 00:02:16,480 --> 00:02:18,280 Speaker 3: you know, I think it's actually opera. I'm just looking 47 00:02:18,320 --> 00:02:19,600 Speaker 3: for foot I think I took a picture of it. 48 00:02:20,400 --> 00:02:22,800 Speaker 3: I'm looking at My brother said, you know, actually I 49 00:02:22,840 --> 00:02:27,920 Speaker 3: think they're operated by somebody remotely. Are versions of these 50 00:02:28,440 --> 00:02:30,800 Speaker 3: operated remotely? I know the current the newest thing that 51 00:02:30,800 --> 00:02:35,000 Speaker 3: you announced today is not operated remotely. Are older versions 52 00:02:35,040 --> 00:02:36,120 Speaker 3: of these operated remotely? 53 00:02:37,240 --> 00:02:41,400 Speaker 1: So they're all what the call level for autonomous, which 54 00:02:41,440 --> 00:02:44,160 Speaker 1: means that they can do a lot of things by themselves. 55 00:02:44,160 --> 00:02:45,840 Speaker 1: So there's a good chance when you saw it it 56 00:02:45,919 --> 00:02:50,079 Speaker 1: was actually navigating by itself. But if it actually needs help, 57 00:02:50,200 --> 00:02:52,639 Speaker 1: it can ask for help and someone can help remotely. 58 00:02:53,160 --> 00:02:55,320 Speaker 3: Oh interesting, So it's a mix. It's kind of just 59 00:02:55,400 --> 00:02:58,200 Speaker 3: like you know, you'd have the way they thought about 60 00:02:58,280 --> 00:03:01,200 Speaker 3: driverless cars back in the day. They haven't implemented it 61 00:03:01,280 --> 00:03:02,760 Speaker 3: yet this way, but it's like you kind of ring 62 00:03:02,800 --> 00:03:06,560 Speaker 3: a bell if you're in a sticky situation. Oh yeah, okay, 63 00:03:06,720 --> 00:03:08,800 Speaker 3: So talk to us about level four automation here, because 64 00:03:08,800 --> 00:03:11,280 Speaker 3: I don't think general can you know Ed Ludlow, who 65 00:03:11,320 --> 00:03:13,600 Speaker 3: covers this stuff all the time, understands levels one. 66 00:03:13,720 --> 00:03:16,400 Speaker 4: That's like his bat signal basically, But. 67 00:03:16,480 --> 00:03:19,800 Speaker 3: For the normal person. What are the different levels of autonomy? 68 00:03:20,840 --> 00:03:22,880 Speaker 1: Yeah, I guess the best pace to explain it is 69 00:03:22,919 --> 00:03:25,560 Speaker 1: if you have a tesla, it's level two, which means 70 00:03:25,639 --> 00:03:27,760 Speaker 1: you have to have your hands on the steering and 71 00:03:27,840 --> 00:03:30,880 Speaker 1: eyes on the road. And then the highest level is 72 00:03:31,000 --> 00:03:33,840 Speaker 1: level five, which is when the robot or the vehicle 73 00:03:34,040 --> 00:03:36,320 Speaker 1: never needs any help at all. It can do everything 74 00:03:36,440 --> 00:03:39,320 Speaker 1: one hundred percent by itself, which if you ask folks 75 00:03:39,320 --> 00:03:41,240 Speaker 1: in this space will tell you is mostly sci fi. 76 00:03:41,760 --> 00:03:45,200 Speaker 1: Level four is the holy grail where robots can actually 77 00:03:45,280 --> 00:03:48,200 Speaker 1: move indepenality by themselves quite a lot of the times, 78 00:03:48,280 --> 00:03:51,480 Speaker 1: but whenever they are outside of the comfort zone, someone 79 00:03:51,560 --> 00:03:54,480 Speaker 1: can help them. And when you think about it, financially, 80 00:03:54,560 --> 00:03:57,520 Speaker 1: there's a point at which automation doesn't make any more 81 00:03:57,520 --> 00:04:02,120 Speaker 1: financial sense because let's say flight controllers sitting somewhere looking 82 00:04:02,120 --> 00:04:06,040 Speaker 1: at hundreds of you know, planes, that's perfectly fine use 83 00:04:06,080 --> 00:04:09,200 Speaker 1: of human intelligence, and it makes a lot of sense 84 00:04:09,240 --> 00:04:11,280 Speaker 1: to actually keep humans in the loop at that level. 85 00:04:12,120 --> 00:04:14,720 Speaker 1: But the important things that the robots can do a 86 00:04:14,720 --> 00:04:17,560 Speaker 1: lot of things by themselves, and that's where a lot 87 00:04:17,560 --> 00:04:19,640 Speaker 1: of the leverage and automation comes in. 88 00:04:20,000 --> 00:04:21,880 Speaker 4: I find this so delightful I know I made a 89 00:04:21,960 --> 00:04:25,000 Speaker 4: joke at the very Star about beating them taking to 90 00:04:25,360 --> 00:04:26,160 Speaker 4: these robots. 91 00:04:26,200 --> 00:04:28,400 Speaker 3: But that's an interesting turn that you've had in such 92 00:04:28,400 --> 00:04:29,000 Speaker 3: a short time. 93 00:04:29,160 --> 00:04:31,240 Speaker 4: I mean, I just, you know, I find it endearing 94 00:04:31,279 --> 00:04:32,280 Speaker 4: these little robots. 95 00:04:32,320 --> 00:04:33,360 Speaker 3: There's cute eyes on them. 96 00:04:33,440 --> 00:04:36,400 Speaker 4: Yeah, they're buzzing around, they're giving you food. I'm in 97 00:04:36,440 --> 00:04:38,920 Speaker 4: New York though, you know, I've never seen one. Of course, 98 00:04:38,960 --> 00:04:41,080 Speaker 4: I don't spend a lot of time in California. What 99 00:04:41,160 --> 00:04:44,120 Speaker 4: are your expansion plans, I mean, what other cities are 100 00:04:44,120 --> 00:04:45,920 Speaker 4: you potentially thinking about here? 101 00:04:47,640 --> 00:04:50,680 Speaker 1: Yeah, we have plans to come to new cities next 102 00:04:50,760 --> 00:04:53,400 Speaker 1: year as soon as in a Q two, we are 103 00:04:53,400 --> 00:04:58,480 Speaker 1: going to have our next major market beyond La. First, 104 00:04:58,480 --> 00:05:01,720 Speaker 1: they are going to expand in more LA neighborhoods. In 105 00:05:01,800 --> 00:05:03,920 Speaker 1: Q one, we have two hundred and fifty more robots 106 00:05:04,040 --> 00:05:06,479 Speaker 1: in Q one being deployed, and then by the end 107 00:05:06,480 --> 00:05:08,640 Speaker 1: of the year, we're going to have two thousand robots 108 00:05:09,000 --> 00:05:11,920 Speaker 1: and we're going to launch a few more cities, which 109 00:05:12,040 --> 00:05:14,719 Speaker 1: we'll have more to share about that soon. We have 110 00:05:14,839 --> 00:05:17,880 Speaker 1: recently discussed the fact that we'll be doing a pilot 111 00:05:18,080 --> 00:05:22,360 Speaker 1: in Dallas with Wing, which is a subsidiary of alphabet. 112 00:05:22,440 --> 00:05:26,560 Speaker 1: They make drones where are robots pick up items from 113 00:05:26,680 --> 00:05:30,280 Speaker 1: restaurants and then hand them over automatically to a drone 114 00:05:30,440 --> 00:05:32,520 Speaker 1: that would then bring them a few miles away, a 115 00:05:32,600 --> 00:05:35,280 Speaker 1: distance that the robot can't do. So it's a really 116 00:05:35,320 --> 00:05:38,280 Speaker 1: cool collaboration where robots do half of the deliveries that 117 00:05:38,279 --> 00:05:40,440 Speaker 1: are short distance drones to the other half that are 118 00:05:40,520 --> 00:05:43,040 Speaker 1: long distance. That's will be one of the next places 119 00:05:43,080 --> 00:05:43,680 Speaker 1: you will see them. 120 00:05:43,800 --> 00:05:46,119 Speaker 4: I dream of a future where I can just open 121 00:05:46,160 --> 00:05:49,000 Speaker 4: my window and get my fries. 122 00:05:48,760 --> 00:05:50,039 Speaker 3: Delivery in New York City. 123 00:05:50,040 --> 00:05:52,120 Speaker 4: I don't want to go downstairs. Well, you know, I 124 00:05:52,160 --> 00:05:54,560 Speaker 4: was going to ask about New York City because Okay, 125 00:05:54,839 --> 00:05:56,200 Speaker 4: in New York City, I feel like one of these 126 00:05:56,279 --> 00:05:59,360 Speaker 4: robots would get attacked, like immediately. And Elliott, the question 127 00:05:59,400 --> 00:06:02,719 Speaker 4: I have for you is, I mean, what's your ideal city. 128 00:06:02,760 --> 00:06:06,600 Speaker 4: Obviously these robots work in LA You're thinking about, you know, 129 00:06:06,680 --> 00:06:10,600 Speaker 4: expanding to Dallas, which is the ideal make up both 130 00:06:10,600 --> 00:06:13,119 Speaker 4: in terms of sort of the temperament of the people 131 00:06:13,160 --> 00:06:15,920 Speaker 4: but also the geography of the city that would work 132 00:06:15,920 --> 00:06:16,760 Speaker 4: for these robots. 133 00:06:18,040 --> 00:06:21,039 Speaker 1: Yeah, I mean, you know, it's really first and foremost 134 00:06:21,040 --> 00:06:25,279 Speaker 1: the question of where are our partners mostly concentrated in 135 00:06:25,360 --> 00:06:29,320 Speaker 1: so Uber is the largest player in LA, so it 136 00:06:29,400 --> 00:06:31,160 Speaker 1: makes a ton of sense for us to start there, 137 00:06:31,240 --> 00:06:33,839 Speaker 1: and LA being the second largest market in the country. 138 00:06:34,480 --> 00:06:36,760 Speaker 1: New York is the largest market, so it's just a 139 00:06:36,760 --> 00:06:40,560 Speaker 1: matter of time before you see robots there. But given 140 00:06:40,640 --> 00:06:43,680 Speaker 1: the distribution effectively the partnerships that we have in place, 141 00:06:43,920 --> 00:06:46,680 Speaker 1: we've started in Los Angeles, but most cities in the 142 00:06:46,720 --> 00:06:50,240 Speaker 1: country would have a need for robots because restaurants are 143 00:06:50,320 --> 00:06:54,880 Speaker 1: usually in very congested areas where you have, you know, 144 00:06:54,960 --> 00:06:58,960 Speaker 1: more car traffic, more parking issues, and within that business 145 00:06:59,120 --> 00:07:01,600 Speaker 1: couple miles at that business district, you have a lot 146 00:07:01,600 --> 00:07:03,719 Speaker 1: of population, so they can benefit from robots. 147 00:07:03,760 --> 00:07:05,599 Speaker 3: New York's a unique market, though we have the e 148 00:07:05,720 --> 00:07:08,440 Speaker 3: bikes and the delivery people, so I don't know. I 149 00:07:08,440 --> 00:07:10,200 Speaker 3: would like to see how it would would work here. 150 00:07:10,200 --> 00:07:12,280 Speaker 4: If you get hit by one of those e bikes, that. 151 00:07:12,280 --> 00:07:14,800 Speaker 3: Would hurt, hurt a lot more than getting hit by 152 00:07:14,840 --> 00:07:18,080 Speaker 3: one of these robots. So then go seven miles an hour. Hey, Ali, 153 00:07:18,120 --> 00:07:19,960 Speaker 3: before we let you go, very briefly, how much do 154 00:07:20,040 --> 00:07:22,400 Speaker 3: these cost? We only have twenty seconds left, but give 155 00:07:22,480 --> 00:07:23,480 Speaker 3: us the cost equation here. 156 00:07:24,760 --> 00:07:27,760 Speaker 1: We don't share the bomb costs, but they cost half 157 00:07:27,800 --> 00:07:29,840 Speaker 1: as much as the last robots be a building, So 158 00:07:29,960 --> 00:07:32,360 Speaker 1: we bring that cost down and they cost less than 159 00:07:32,400 --> 00:07:35,080 Speaker 1: a brand new car, the cheapest band new car you 160 00:07:35,120 --> 00:07:36,160 Speaker 1: can buy in the US. 161 00:07:36,400 --> 00:07:36,640 Speaker 4: Wow. 162 00:07:36,880 --> 00:07:38,000 Speaker 3: So they're pretty expensive. 163 00:07:39,520 --> 00:07:41,840 Speaker 1: I would say that pretty cheap with all that smart 164 00:07:41,920 --> 00:07:45,680 Speaker 1: the sensors, the computer computers on board, they're they're pretty 165 00:07:46,160 --> 00:07:47,000 Speaker 1: reasonably priced. 166 00:07:47,040 --> 00:07:48,840 Speaker 3: But I imagine they're going to be getting cheaper and 167 00:07:48,880 --> 00:07:52,200 Speaker 3: cheaper with the technology, really cool stuff. It's a publicly 168 00:07:52,320 --> 00:07:57,640 Speaker 3: held company ticker seer v uh. The company stock up 169 00:07:57,720 --> 00:08:01,480 Speaker 3: four point five percent today. Ali Kashani, co founder and 170 00:08:01,520 --> 00:08:05,840 Speaker 3: CEO of Server Robotics. This is Bloomberg. The hospitality market 171 00:08:05,960 --> 00:08:09,320 Speaker 3: expected to grow to nearly five trillion dollars this year. 172 00:08:09,600 --> 00:08:12,240 Speaker 4: I'd believe it, you do, Yeah, I mean Americans they 173 00:08:12,240 --> 00:08:15,960 Speaker 4: love experiences, they love going places, and they love eating well. 174 00:08:16,000 --> 00:08:21,600 Speaker 3: Several factors wellness, tourism, flexible booking options, sustainability initiatives, collaboration, 175 00:08:22,080 --> 00:08:23,360 Speaker 3: and health and safety standards. 176 00:08:23,480 --> 00:08:25,880 Speaker 4: That all sounds right, and they love going places absolutely. 177 00:08:26,440 --> 00:08:29,160 Speaker 3: Longevity and senior living facilities also a factor. And that's 178 00:08:29,160 --> 00:08:31,800 Speaker 3: where our next guest comes in. Let's get to Richard Shankle, 179 00:08:31,880 --> 00:08:35,680 Speaker 3: founder and executive chairman of Restura Hospitality Group. It is 180 00:08:35,679 --> 00:08:38,080 Speaker 3: looking to bring tech and innovation to senior living. He 181 00:08:38,160 --> 00:08:40,960 Speaker 3: joins us from Walthnam, Massachusett. It's Richard, the founder and 182 00:08:40,960 --> 00:08:44,560 Speaker 3: former CEO at Unidine, which provides food and dining management 183 00:08:44,640 --> 00:08:48,079 Speaker 3: services across the country for senior living facilities, community hospitals, 184 00:08:48,320 --> 00:08:51,400 Speaker 3: behavior health clients, corporate environments and more. Good to have 185 00:08:51,480 --> 00:08:54,960 Speaker 3: you with us this afternoon. Richard, give us an idea 186 00:08:55,040 --> 00:08:58,160 Speaker 3: of the white space that you see here because you've 187 00:08:58,160 --> 00:09:02,200 Speaker 3: spent some three decades in the larger hospitality business, what's 188 00:09:02,240 --> 00:09:07,480 Speaker 3: missing when it comes to senior living facilities at the marketplace? 189 00:09:07,480 --> 00:09:09,760 Speaker 5: And thank you Tim, and thank you everybody for having 190 00:09:09,840 --> 00:09:14,800 Speaker 5: us on right today. All the hospitality industry focused on 191 00:09:14,920 --> 00:09:19,199 Speaker 5: senior living is about twenty years behind the times in innovation. 192 00:09:19,800 --> 00:09:22,280 Speaker 5: And as we looked at the launch of Resstoer, we 193 00:09:22,360 --> 00:09:25,440 Speaker 5: spent the last eighteen months with market research and really 194 00:09:25,480 --> 00:09:30,080 Speaker 5: trying to understand what that act of adult lifestyle, community 195 00:09:30,120 --> 00:09:31,720 Speaker 5: and senior living really wants. 196 00:09:32,200 --> 00:09:35,320 Speaker 2: And what really came out is they want choice. 197 00:09:36,080 --> 00:09:38,200 Speaker 5: As we go back in life, as most of us 198 00:09:38,240 --> 00:09:43,679 Speaker 5: will remember airports, airports were probably the most stoic type 199 00:09:43,720 --> 00:09:46,360 Speaker 5: of business where there was no freedom of choice. And 200 00:09:46,400 --> 00:09:50,120 Speaker 5: now we look today, whether it's local brands, national brands, 201 00:09:50,679 --> 00:09:53,120 Speaker 5: or things to do when you're in an airport, it's 202 00:09:53,240 --> 00:09:56,840 Speaker 5: humbly very different. In our opinion. The same thing went 203 00:09:56,880 --> 00:10:00,720 Speaker 5: on in the college and university market place back many, 204 00:10:00,720 --> 00:10:02,840 Speaker 5: many years ago. It was just a board plan a 205 00:10:03,000 --> 00:10:06,200 Speaker 5: you got, you've received three meals a day, two meals 206 00:10:06,880 --> 00:10:08,000 Speaker 5: certain days. 207 00:10:07,880 --> 00:10:10,520 Speaker 2: And that was it in one dining room and senior 208 00:10:10,600 --> 00:10:11,319 Speaker 2: living has Yeah. 209 00:10:11,320 --> 00:10:13,000 Speaker 3: I remember when my parents dropped me off at college. 210 00:10:13,000 --> 00:10:15,360 Speaker 3: They were like, oh, this is why tuition is so expensive. 211 00:10:15,880 --> 00:10:17,480 Speaker 3: Why are they spending all the money on the dining 212 00:10:17,520 --> 00:10:19,840 Speaker 3: hall and on the lawns and on the dorms. 213 00:10:19,679 --> 00:10:23,760 Speaker 5: Right right, And if you look at colleges and university, 214 00:10:23,920 --> 00:10:26,920 Speaker 5: some of the CNU business has some of the best 215 00:10:26,960 --> 00:10:29,320 Speaker 5: reputations from a culinary perspective. 216 00:10:29,840 --> 00:10:31,400 Speaker 2: Then you go over to senior. 217 00:10:31,120 --> 00:10:33,200 Speaker 5: Living and I spent the large part of my career 218 00:10:33,280 --> 00:10:37,880 Speaker 5: in it, and it hasn't evolved. There are three major 219 00:10:37,920 --> 00:10:43,760 Speaker 5: competitors in it, and it's a very stoic, poorly innovative marketplace. 220 00:10:44,760 --> 00:10:48,560 Speaker 3: Your point, I know from experience visiting my grandma. 221 00:10:48,800 --> 00:10:52,000 Speaker 4: Yeah, yeah, well, Richard, I'm curious. I mean, we'll get 222 00:10:52,000 --> 00:10:55,560 Speaker 4: into what you're trying to do and how you're trying 223 00:10:55,559 --> 00:10:58,400 Speaker 4: to change that. But why do you think that's the case. 224 00:10:58,440 --> 00:11:00,760 Speaker 4: I mean, you bring up some great points when it 225 00:11:00,760 --> 00:11:03,400 Speaker 4: comes to college, even when it comes to airports, for example, 226 00:11:03,400 --> 00:11:05,720 Speaker 4: the dining options getting better. Why do you think we 227 00:11:05,920 --> 00:11:09,959 Speaker 4: haven't seen that same energy being brought to senior living 228 00:11:10,000 --> 00:11:11,760 Speaker 4: even though the population is aging. 229 00:11:12,920 --> 00:11:13,199 Speaker 2: Well. 230 00:11:13,559 --> 00:11:17,840 Speaker 5: I think it was a couple of different things. Number One, 231 00:11:18,280 --> 00:11:22,600 Speaker 5: the type of active adult that was prior in senior 232 00:11:22,679 --> 00:11:27,679 Speaker 5: living was very comfortable with just one choice or two. 233 00:11:27,760 --> 00:11:30,280 Speaker 5: I think as the market has changed and you look 234 00:11:30,320 --> 00:11:34,280 Speaker 5: at the boomers coming in and just even active adults 235 00:11:34,320 --> 00:11:37,240 Speaker 5: sixty five and seventy and seventy five, they're. 236 00:11:37,120 --> 00:11:39,200 Speaker 2: A lot more sophisticated today. 237 00:11:39,920 --> 00:11:42,760 Speaker 5: If you kind of look at the restaurant industry thirty 238 00:11:42,840 --> 00:11:47,560 Speaker 5: years ago, it's very much evolved, and I believe right now, 239 00:11:47,640 --> 00:11:51,960 Speaker 5: as these active adult and senior living continuing care or 240 00:11:52,720 --> 00:11:55,840 Speaker 5: types of communities go up, it is a much more 241 00:11:55,880 --> 00:12:01,080 Speaker 5: sophisticated consumer today that has an expectation. Research that we 242 00:12:01,120 --> 00:12:06,920 Speaker 5: did prior to launch, only seven percent of the individuals 243 00:12:07,000 --> 00:12:11,040 Speaker 5: looking at senior living active adult communities felt it would 244 00:12:11,040 --> 00:12:15,160 Speaker 5: meet their food and dining needs. Ninety three percent felt 245 00:12:15,640 --> 00:12:19,000 Speaker 5: it would never meet the mark of really great dining. 246 00:12:19,440 --> 00:12:21,280 Speaker 5: That's a major disconnect. 247 00:12:22,520 --> 00:12:25,000 Speaker 3: I'm wondering about the cost equation here and how that 248 00:12:25,800 --> 00:12:32,200 Speaker 3: looks for senior dining, for senior living facilities. These places, Richard, 249 00:12:32,240 --> 00:12:35,359 Speaker 3: as you know, can be incredibly expensive. 250 00:12:38,280 --> 00:12:42,720 Speaker 5: That's correct, And I think given that, you know, we're 251 00:12:42,760 --> 00:12:45,960 Speaker 5: looking at the marketplace and saying, why isn't there the 252 00:12:46,040 --> 00:12:50,880 Speaker 5: opportunity to upgrade the dining services or for variety choice, 253 00:12:51,040 --> 00:12:53,600 Speaker 5: you know, things like pop up restaurants, you know, with 254 00:12:53,720 --> 00:13:00,600 Speaker 5: proprietary brands launching there to offer that what we'll call consumer, 255 00:13:00,840 --> 00:13:04,679 Speaker 5: those choices and be able to keep them within the 256 00:13:05,400 --> 00:13:08,400 Speaker 5: confines of that community by offering them that high level 257 00:13:08,520 --> 00:13:11,880 Speaker 5: dining experience when they want it, but also offering them 258 00:13:11,880 --> 00:13:14,160 Speaker 5: to other things besides high level dining. 259 00:13:15,520 --> 00:13:19,040 Speaker 4: And it's interesting. I mean, I'm curious, you know, how 260 00:13:19,200 --> 00:13:21,480 Speaker 4: tech plays into it, because you point out in your 261 00:13:21,520 --> 00:13:24,480 Speaker 4: notes that when we think about, you know, this this 262 00:13:24,559 --> 00:13:28,520 Speaker 4: shift from cafeterials cafeteria style when it comes to colleges 263 00:13:28,960 --> 00:13:32,200 Speaker 4: to really tech forward experience, I mean, how do you 264 00:13:32,679 --> 00:13:34,319 Speaker 4: incorporate tech into what you're doing? 265 00:13:35,160 --> 00:13:38,560 Speaker 5: Yeah, well, we spent the last eighteen months pre launch 266 00:13:38,600 --> 00:13:42,800 Speaker 5: of October first envisioning what technology would be, and the 267 00:13:42,880 --> 00:13:47,719 Speaker 5: industry is definitely a laggered in that area. Just imagine 268 00:13:48,480 --> 00:13:52,840 Speaker 5: you walk into a dining room by a facility operated 269 00:13:52,840 --> 00:13:55,560 Speaker 5: by Restore and by the end of the meal, we 270 00:13:55,679 --> 00:14:00,320 Speaker 5: have technology that will allow that executive c suite as 271 00:14:00,320 --> 00:14:05,160 Speaker 5: well as us, to know how we did, what they liked, 272 00:14:05,480 --> 00:14:07,960 Speaker 5: why they liked it, and what they didn't like, and 273 00:14:08,080 --> 00:14:11,000 Speaker 5: be able to immediately change anything. 274 00:14:10,720 --> 00:14:12,600 Speaker 2: From a menu offering the next day. 275 00:14:13,400 --> 00:14:16,280 Speaker 5: All but getting the results immediately of what we'll call 276 00:14:16,400 --> 00:14:24,800 Speaker 5: consumer satisfaction and analytics on a dashboard for both us 277 00:14:24,880 --> 00:14:29,680 Speaker 5: internally as well as our consumer there as well as 278 00:14:29,760 --> 00:14:33,840 Speaker 5: the executive suite can be a complete game changer for 279 00:14:33,880 --> 00:14:38,120 Speaker 5: those facilities. It's never been done. Today, we go in 280 00:14:38,160 --> 00:14:41,520 Speaker 5: and get our car fixed, and I use the analogy. 281 00:14:42,000 --> 00:14:46,040 Speaker 5: We get constant updates of how that car is getting fixed, 282 00:14:46,040 --> 00:14:48,920 Speaker 5: what they're doing, and at the end, are you satisfied? 283 00:14:49,680 --> 00:14:52,200 Speaker 5: In senior living. I can tell you nine times out 284 00:14:52,200 --> 00:14:55,440 Speaker 5: of ten, a once a year survey of how the 285 00:14:55,480 --> 00:14:59,160 Speaker 5: food and dining is is completed, and that's unacceptable in 286 00:14:59,160 --> 00:15:02,360 Speaker 5: today's day and a from a consumer perspective. 287 00:15:01,920 --> 00:15:09,360 Speaker 3: What's the technology that the end user has to interact with. 288 00:15:09,440 --> 00:15:11,840 Speaker 3: I'm not talking about the executives at the place. I'm 289 00:15:11,840 --> 00:15:14,640 Speaker 3: not talking about the staff who works there. What about 290 00:15:14,640 --> 00:15:17,640 Speaker 3: the tech that somebody like my grandmother would have to 291 00:15:17,640 --> 00:15:18,240 Speaker 3: interact with? 292 00:15:18,440 --> 00:15:21,360 Speaker 5: Right, Yeah, it's very interesting. We spent a lot of 293 00:15:21,440 --> 00:15:24,800 Speaker 5: time and what we came to find out is, you know, 294 00:15:25,440 --> 00:15:29,640 Speaker 5: the phone, whether we call on an iPhone or Samsung, 295 00:15:30,720 --> 00:15:34,320 Speaker 5: a smartphone is what almost every one of them have 296 00:15:34,440 --> 00:15:38,240 Speaker 5: in a facility. And we are very much involved in, 297 00:15:38,440 --> 00:15:41,440 Speaker 5: you know, building out and we have built out the 298 00:15:41,840 --> 00:15:46,160 Speaker 5: applications that will allow that person internally to be able 299 00:15:46,280 --> 00:15:50,000 Speaker 5: to get us information as well as for us to 300 00:15:50,040 --> 00:15:53,200 Speaker 5: push information to them. And it hasn't been done. We've 301 00:15:53,240 --> 00:15:57,160 Speaker 5: done things like paper surveys. They are so outdated in 302 00:15:57,200 --> 00:15:58,880 Speaker 5: today's day and age. 303 00:15:59,120 --> 00:16:01,160 Speaker 4: Yeah, I have to say, I mean, I don't know. 304 00:16:01,240 --> 00:16:03,760 Speaker 4: I think of my own grandmom, who's in her nineties. 305 00:16:04,000 --> 00:16:06,280 Speaker 4: She was using an Uber up until a few years ago. 306 00:16:06,320 --> 00:16:08,920 Speaker 3: Oh really, yeah, my grandma doesn't even have a smartphone. 307 00:16:08,960 --> 00:16:10,920 Speaker 4: That's we have very different grandmother. 308 00:16:10,600 --> 00:16:14,040 Speaker 3: But she's one hundred and two. Actually tomorrow's her birthday. 309 00:16:14,040 --> 00:16:18,240 Speaker 4: Oh my goshdred and second birthday wew, no kidding. Well, anyway, 310 00:16:19,200 --> 00:16:21,400 Speaker 4: we have different grandmoms. Mine's ninety five. 311 00:16:21,200 --> 00:16:25,240 Speaker 3: So it's like almost yeah, yeah, that's so she uses 312 00:16:25,240 --> 00:16:26,680 Speaker 3: a smartphone obviously. 313 00:16:26,280 --> 00:16:29,000 Speaker 4: Because yeah, yeah, she loves emojis and stuff. A text 314 00:16:29,000 --> 00:16:31,200 Speaker 4: her all the time. Anyway, that's awesome, Richard, I am 315 00:16:31,200 --> 00:16:34,680 Speaker 4: curious talk to us about how how you make money 316 00:16:34,680 --> 00:16:37,240 Speaker 4: because you think about your last venture in this space. 317 00:16:37,280 --> 00:16:40,000 Speaker 4: For example, you point out in your notes that you 318 00:16:40,080 --> 00:16:43,360 Speaker 4: delivered a nine hundred percent return to shareholders. Talk us 319 00:16:43,400 --> 00:16:46,120 Speaker 4: through again. Obviously, we know the opportunity set here that 320 00:16:46,200 --> 00:16:47,920 Speaker 4: you see and what you're doing about it. How do 321 00:16:47,960 --> 00:16:49,840 Speaker 4: you make money? 322 00:16:49,920 --> 00:16:54,120 Speaker 5: Yeah, so it's fundamentally on on site food service type 323 00:16:54,120 --> 00:16:55,360 Speaker 5: of operations. 324 00:16:55,400 --> 00:16:57,880 Speaker 2: We have two ways that we get involved. 325 00:16:58,240 --> 00:17:01,080 Speaker 5: We operate on a cost plus base basis where we 326 00:17:01,200 --> 00:17:04,879 Speaker 5: have different overheads and fees built in. And then we 327 00:17:04,920 --> 00:17:07,200 Speaker 5: also operate a lot of the times on what we'll 328 00:17:07,240 --> 00:17:11,120 Speaker 5: call profits loss arrangement, where we'll guarantee our operating costs. 329 00:17:11,520 --> 00:17:14,800 Speaker 5: And obviously, if we operate the way we envision, there's 330 00:17:14,880 --> 00:17:17,760 Speaker 5: profit and if we don't, we take risk on that end, 331 00:17:18,080 --> 00:17:21,600 Speaker 5: and we make guarantees throughout our agreements. So it's pretty 332 00:17:21,600 --> 00:17:26,840 Speaker 5: fundamentally a business that provides margin back to us. 333 00:17:27,200 --> 00:17:30,080 Speaker 3: How hard is it to get into these facilities that 334 00:17:30,160 --> 00:17:33,199 Speaker 3: have been working with incumbents for years and might have 335 00:17:33,240 --> 00:17:34,280 Speaker 3: long term contracts. 336 00:17:35,119 --> 00:17:37,800 Speaker 5: Well, you know, you know what I would say is, 337 00:17:37,840 --> 00:17:41,439 Speaker 5: I'll give you some statistics about eighty five percent of 338 00:17:41,840 --> 00:17:46,080 Speaker 5: the senior living marketplace, which is you know, thirty to 339 00:17:46,080 --> 00:17:50,919 Speaker 5: forty billion, is not outsourced. They presently are self operated. 340 00:17:51,240 --> 00:17:55,680 Speaker 5: The other fifteen percent is outsourced to competitors. So there's 341 00:17:55,720 --> 00:17:58,200 Speaker 5: a huge amount of white space to be focused on. 342 00:17:58,840 --> 00:18:01,920 Speaker 5: And you know how we look at that other fifteen percent, 343 00:18:03,200 --> 00:18:06,600 Speaker 5: We don't believe we are building or have built restore 344 00:18:06,680 --> 00:18:09,280 Speaker 5: to compete with the other companies. We think we have 345 00:18:09,400 --> 00:18:14,119 Speaker 5: such a creative, innovative approach. We also know, as part 346 00:18:14,160 --> 00:18:19,560 Speaker 5: of our whole value proposition, I've provided back to all 347 00:18:19,600 --> 00:18:23,200 Speaker 5: of our employees over thirty percent of the company in 348 00:18:23,200 --> 00:18:27,640 Speaker 5: equity to our employees. All of our employees are owners 349 00:18:27,720 --> 00:18:31,720 Speaker 5: of the company. We subscribe and are a participant with 350 00:18:31,880 --> 00:18:34,960 Speaker 5: ownership Works in New York City a not for profit, 351 00:18:35,280 --> 00:18:37,560 Speaker 5: and I think we're one of the first startups that 352 00:18:37,600 --> 00:18:41,840 Speaker 5: they've ever involved themselves in where a percent of the 353 00:18:41,920 --> 00:18:45,959 Speaker 5: company was provided prior to the company being profitable. 354 00:18:46,359 --> 00:18:52,040 Speaker 3: Wow, Okay, what's your outlook in terms of how you 355 00:18:52,160 --> 00:18:55,639 Speaker 3: roll this out? When you roll it out? Just we 356 00:18:55,680 --> 00:18:59,520 Speaker 3: have thirty seconds left. Give us an update on timing here, right? 357 00:18:59,760 --> 00:19:03,680 Speaker 5: We started October first, after eighteen months in stealth mode. 358 00:19:04,080 --> 00:19:08,880 Speaker 5: We are in constant communication with prospective clients. Now we're 359 00:19:09,000 --> 00:19:12,480 Speaker 5: coast to coast from the east to the west provider, 360 00:19:13,080 --> 00:19:18,040 Speaker 5: and we envision that over a very short period of time, 361 00:19:18,720 --> 00:19:22,080 Speaker 5: we already have many prospective clients that we are moving 362 00:19:22,119 --> 00:19:25,639 Speaker 5: forward with. And as I said, we have just spent 363 00:19:25,720 --> 00:19:29,600 Speaker 5: the last eighteen months making sure our systems, technology and 364 00:19:29,680 --> 00:19:33,439 Speaker 5: culinary resources are in place. Executive team has been hired, 365 00:19:33,840 --> 00:19:37,720 Speaker 5: and we're right now already involved with some clients. 366 00:19:37,880 --> 00:19:41,760 Speaker 3: All right, Richard, come back visit us again. Richard Schenkel, 367 00:19:42,040 --> 00:19:45,600 Speaker 3: founder and executive chairman of Restoa Hospitality Group, looking to 368 00:19:45,600 --> 00:19:48,720 Speaker 3: bring tech an innovation to senior living, joining us this 369 00:19:48,800 --> 00:19:51,360 Speaker 3: afternoon from Waltham, Massachusetts.