With 55 appliances managed for some thirty customers, Foozo claims a 70% share of the local market for connected fridges. This is still a young market, and one that the Luxembourg scaleup (formerly GroupLunch)-- which was founded in 2016 and rebranded when pandemic-related constraints were lifted in 2021--is approaching from a clear position of strength. It’s firmly planted on its other two pillars of activity: corporate meal delivery and data. In doing so, it is ticking all the right boxes in terms of the complementary nature of its activities.

“These three components are an inseparable part of our DNA, and they are our superpowers in relation to the competition,” argues CEO , aged 36. Foozo has set itself the target of 200 fridges within three years and doubling its sales from €5m to €10m. Its fridges now account for around a quarter of this turnover.

Rolls-Royce

Pereira Da Silva compares the machines designed in the UK and the Netherlands by Husky, the manufacturer with which Foozo has worked from the outset, to Rolls-Royces. Technologically, the machines stand out from conventional vending machines because of their user-friendly approach. No time is wasted, no fraud is possible. As at the pump, in a service station, the customer identifies him or herself using a bank card or lunch voucher and helps himself inside the fridge. The transaction is completed as soon as the door closes. The desired product is identified using a microwave sensor and the purchase price is debited accordingly. “It takes three seconds.”

A fast-growing workshop

Foozo itself prepares the dishes that are made available in the intelligent fridges. A team of ten full-time equivalents (out of a total of 55 employees) works in the kitchen under the orders of a chef and a production manager. A few days ago, a new 260m2 workshop was opened in Esch-sur-Alzette. The old facilities in Hamm, where the head office is based, had become too small to keep up with the company’s growth. It is currently expanding at the rate of one new post created every month. In the very near future, the workshop is expected to operate 16 hours a day, compared with 10 at present. On average, Foozo is increasing its network of installed fridges by three additional units per month.

“A daily challenge”

The promise is twofold: ultra-freshness and responsiveness. Ultra-fresh, because the products on offer all have an extremely short use-by date. They are made up to 24 hours in advance. “The advantage is superior quality, fully preserved nutritional value, no spoilage... The downside is just-in-time management, both in terms of food and logistics. A daily challenge. For the customer, on the other hand, it’s a win-win situation, because in our model, they don’t pay for the ‘food loss’ aspect (unsold products), we take care of that part, as well as the capex of the equipment.”

In terms of responsiveness, the sensors mentioned a minute ago keep Foozo informed in real time of the state of stocks in each fridge. At the very least, stocks are replenished once a day. “In a company of 300 or 400 people, this represents a certain volume. If we have to restock three times a day, we do it. Thanks to data, we can anticipate,” explains the CEO. The economic deadweight loss linked to unsold products is a significant cost of the system, which is therefore absorbed by Foozo in its business model. “With a few exceptions, nothing is ever thrown away.” The company has joined forces with associations such as Stëmm vun der Strooss to redistribute unsold food free of charge.

Connected fridge market “still in its infancy”

In its development, Foozo is taking its inspiration from what is being done abroad by operators such as France’s Foodles and Switzerland’s Felfel, whose market penetration in their respective countries is more or less the same as here. And it is surrounding itself with local expertise, like Cocottes founder , who has taken a 10% stake in the company and has also joined the board of directors.

“In a mature market, we know what works and what doesn’t, because everything has been tried and tested. The connected fridge market, on the other hand, is still in its infancy, so there are more uncertainties than in other markets. We learn and move forward with time. But in this context, we can rely on one strong point: the excellence we pride ourselves on. Excellence in food, data and logistics,” sums up Pereira Da Silva.

This same excellence, he goes on to explain, weighs heavily in their thinking about possible expansion. “What about abroad? I recently had acquisition proposals in Belgium and Germany, which I have not followed up for the time being. The Luxembourg market lends itself perfectly to B2B customers looking for the same excellence as us. Would the same apply in other countries? And if not, would we be prepared, in those markets, to lower our standards in order to adapt? At this stage, I don't have the answer,” concludes the CEO.

This article was originally published in .