Picnic Raises $5 Million for Pizza Automation

CEO Michael Bridges discusses fundraising strategy, growth plans

Pizza automation startup Picnic just announced it’s raised $5 million in new funding, led by Cercano Management, with participation from new investor Unlock Venture Partners, as well as existing investors Thursday Ventures, Flying Fish Ventures, and Creative Ventures. While that’s a bit of a smaller raise than some of its previous rounds, CEO Michael Bridges is optimistic this new funding will set the “stage for the next phase” of the company’s growth. He also shared advice for other companies currently fundraising, gave some insights into his refreshed product lineup and offered thoughts on the automation industry as a whole.

The “Michelangelo” sports a smaller footprint | Picnic

Ottomate: It's pretty hard out there for CapEx intensive hardware startups to raise venture funding these days. What was your pitch that convinced investors to keep backing your vision?

Michael Bridges: Our pitch highlighted Picnic’s proven impact on productivity and efficiency in the food service industry, emphasizing our customer-centric approach and tangible ROI. With over 3 billion pizzas sold annually in North America, we showcased the immense market opportunity for food automation, particularly within high-volume environments like stadiums, universities, big box retailers, and military bases. Further, our existing customer base and pilots offer a compelling path forward. Our technology addresses challenging labor problems and productivity challenges while reducing food waste, a strong story for investors looking to back innovations in robotics, food technology, and automation. Our recent $5 million round, led by Cercano Management with new and existing investors, is a testament to the confidence in our mission to redefine food production.

You raised $13.8 million back in late 2022; what milestones has the company hit since then?

Since our previous funding, we’ve fine-tuned our target market, adopted a new operating model and expanded our customer base to include high-profile venues such as the Indian Wells Tennis Garden and T-Mobile Park, and we've also started a pilot program with one of the world’s largest retailers. Additionally, our machines have been deployed at the U.S. Navy Kitsap base. We've made strides in product innovation, including the introduction of the PPS Michelangelo™, a more compact and cost-effective version of our flagship PPS Leonardo™. Kitchen space is often finite so having multiple sized products to choose from was critical to get in market.  These advancements allow us to meet the growing demand for scalable, efficient food production solutions across North America.

What are your plans for the new funding, how will you put the capital to work and how long do you expect it to last you?

The recent $5 million funding will be dedicated to scaling operations, ramping up production, and accelerating delivery capabilities to meet increased demand across North America. We’re also investing in expanding our support infrastructure to ensure high service levels for customers in diverse environments. We anticipate this capital will support our growth and production targets for the next 18-24 months and beyond, setting the stage for the next phase of Picnic's expansion.

How are Picnic's customers using your machines? Are you finding there are different applications for mom and pop restaurateurs, versus chains, versus foodservice?

Picnic's machines are versatile, serving a wide range of customers. We have customers using the machines for full prep/production in the morning, commissary style take and bake, real-time production, and the like. Artisanal pizzerias like MOTO Pizza appreciate our technology for maintaining consistency and quality while scaling production. High-volume customers, such as stadiums and commissaries, leverage our machines to increase productivity, optimize labor allocation and reduce food waste. Each customer segment benefits uniquely from our automation, whether it's streamlining operations, enhancing product consistency, or managing labor challenges.

Can you share anything about the product road map? Are there any interesting updates in the works?