Ali Group Updates the Welbilt Leadership Team

Multiline foodservice equipment manufacturer Welbilt made a series of changes to its leadership team both at the corporate level and across several of its lines.

At the corporate level, company veteran Jim Courtright will now serve as vice president of sales, Americas for Welbilt. He will be responsible for sales in both North America and South America, as well as overseeing Welbilt’s network of independent manufacturers’ reps in the U.S. and managing the company’s relationship with dealer-based foodservice equipment buying groups. In 1994 Courtright joined Scotsman Ice Systems, where he held various roles, including management of sales for the Enodis brands from 2001 to 2009. In his new position, he returns to the Welbilt family of companies. Courtright most recently served as vice president of global accounts at Scotsman.

Brandon Slotman now serves as president of Delfield. He joined Delfield in 2020 as vice president and managing director. Slotman’s career dates back to 2008 when he began work as an engineer for Denso Corp. His background also includes working for Tenneco. Brian Holdrich will now serve as president of Welbilt’s Frymaster line. He replaces Todd Phillips, who is retiring, per a company release. Holdrich joined Welbilt in 2009 as vice president of sales and marketing for Kolpak. From 2014 to 2022 he held various roles in sales, marketing, operations, and customer service for Welbilt. Most recently, Holdrich served as vice president of sales and marketing for Welbilt.

Mark Smith now serves as president of Multiplex. He most recently served as vice president and managing director for Multiplex. Smith has more than 28 years of experience in the beverage industry.

Clint Reed has been named President of Kolpak. In 2018, Reed was promoted to vice president and managing director of Kolpak. Reed joined Welbilt in 2009 working in various finance, production, and plant management positions. Prior to joining Welbilt, he served as controller for Cascades Inc. from 2001 to 2009.

Stan Ioffe now served as president of Welbilt’s Cleveland line of cooking equipment. He replaces Graham Sams who will now serve as president of Welbilt equipment lines Garland and Lincoln.

Ioffe spent nine years in the consumer package goods industry, holding various roles at General Mills and Canada Bread. He joined Welbilt in 2020 as head of finance for the Canadian division, supporting the Garland, Lincoln, and Cleveland manufacturing facilities as well as the American ovens and Canadian distribution businesses.

Sams joined Welbilt in 2011 as production manager of the Garland manufacturing facility. After assuming increasing roles of responsibility in manufacturing, Sams was promoted to managing director of Lincoln in 2017, and in 2020 he was named managing director of Cleveland.

Joining Sams working on Welbilt’s Lincoln line of equipment in a general manager’s role is Tom Kurgan. In this role, Kurgan assumes responsibility for all U.S. sales, service, and support for Lincoln equipment. He most recently served as an area vice president for Welbilt, covering the Midwest and Northeast regions. Kurgan began his foodservice industry career in 1988 with Lincoln Foodservice Products. He has held various sales and marketing positions for Enodis, Manitowoc Foodservice and Welbilt.

Nick Patterson has been named president of Merco and KitchenConnect. Patterson most recently served as vice president and managing director of Merco. He joined Welbilt in 2010 in a research and development role. – Source: Welbilt.

What Is The Best-Selling Item On The McDonald’s Menu?

When it comes to fast food, McDonald’s remains the king. There are a number of fast-food chains that have tried, but none have been able to completely knock McDonald’s from its lofty perch. To keep its hold on number one, McDonald’s has had to continue to be inventive while also continuing to give customers what they expect – Big Macs, cheeseburgers, french fries, and chicken McNuggets. All of them have been McDonald’s staples for a long time and all of these have been big-time sellers. They continue to lead the way in keeping McDonald’s as the number one fast-food restaurant in the world, but which of these staples (or perhaps another) is the item that truly moves the needle? Which is the best-selling item on the McDonald’s menu? The answer may not even come close to surprise you.

Little did anyone realize just where the McDonald’s franchise would end up. It came into existence in 1940 when the McDonald’s brothers, Richard and Maurice, opened their first McDonald’s restaurant. It was a simple hamburger joint located in San Bernardino, California, and did decent business early on. But the brother’s desire was to get food out faster to their customers, so in 1948, they introduced the “Speedee Service System” that had been put into use decades earlier by another popular hamburger chain, White Castle.

The Speedee Service System used principles of a manufacturing line and applied them to the restaurant. It helped the McDonald brothers move their products along at a much faster rate, satisfying customers. Obviously, the best-selling item on the McDonald’s menu at that time was the hamburger. The best-selling item on the McDonald’s menu went from simple to fast As Ray Kroc put it when he first rolled into McDonald’s, “I was amazed. They were serving hamburgers for 15 cents, french fries for 10 cents, and milkshakes for 20 cents. And basically, that was the menu, and I said, ‘that’s for me.'” And he wasn’t lying. Ray Kroc first visited the McDonald’s location in 1954 as a salesman for Prince Castle. He sold eight Multi-Mixers for the McDonald’s San Bernardino restaurant and was thoroughly impressed by their business model.

Kroc became McDonald’s franchise agent in 1955 with a vision, one that didn’t necessarily include the McDonald brothers. As Kroc was convincing the brothers to expand the menu, he was also building more and more restaurants. For the first seven or so years of McDonald’s, they were not known as the “Golden Arches.” Instead, their early mascot was a chef’s hat that sat on top of a hamburger. The Golden Arches wasn’t introduced until 1961 and while the design has changed a time or two over the years, the Golden Arches remain the same.

While hamburgers, cheeseburgers, and french fries remained the best-selling items on the McDonald’s menu, Kroc and the McDonald brothers were locked in a struggle for control of the business. Kroc, the ever-aggressive one, eventually bought out the McDonald brother in 1961 for $2.7 million, a number unheard of at the time. From that point on, Ray Kroc began to chart his path to world fast-food dominance. Of course, it all started with the best-selling items on the McDonald’s menu.

The McDonald’s menu over the years

What is the best-selling items on the McDonald’s menu© Provided by Tell Me Best Innovation has always been the key to the best-selling items on the McDonald’s menu. From the simple start of burgers, fries, and soft drinks, Kroc and the company knew the only way they were going to build and retain customers was to continue producing the items that made them popular and also introduce new items to bring in new customers. Some of their ideas failed miserably, but some of their ideas stuck.

We are going to take a look at the top 10 best-selling items on the McDonald’s menu. We will count them down from 10 to 1, so see if there are any items on this list that may be surprising to you. Guaranteed, the number one best-selling item on the McDonald’s menu will not come as a shock to anyone. Here we go.

Best selling items on the McDonald’s menu – from 10 to 1

10. McGriddles Breakfast Sandwich – How can you not love the combination of pancakes, bacon, and eggs? Separately they are delicious but putting them together in one small breakfast sandwich is sheer brilliance. The “folded egg” design of the breakfast sandwich has been a hit since its inception and continues to be so today.
11. Double Cheeseburger – What is better than a single cheeseburger? Well a double, of course. The McDonald’s double cheeseburger ranks as the number nine best-selling item on the McDonald’s menu and has a special place in saving the franchise. The double cheeseburger came aboard in 2002 and in 2003 it was placed on the McDonald’s Dollar menu. It popularity and high sales volume almost singlehandedly saved the franchise from its first quarterly loss since way back in 1965.
12. Premium Salads – Say what? A salad is the eighth best-selling item on the McDonald’s menu. Say it isn’t so! Well, we can’t because they are. Salads have been part of the McDonald’s menu for some time, but it was back in 2003 that they decided to up their lettuce game from regular iceberg lettuce to a new lettuce blend mixture. Eventually, McDonald’s got rid of the iceberg lettuce altogether and began adding ingredients such as the Southwest Buttermilk Crispy Chicken and Bacon Ranch, turning a ho-hum menu item into a big seller.
13. Chicken McNuggets – What’s surprising about this item being the number seven best-selling item on the McDonald’s menu is just that. It is number seven and not higher on the list. Kids generally request Chicken McNuggets more than any item on the menu, which makes this entry at seven confusing. But there they are, still in the top ten, and rightfully so.
14. Baked Apple Pie/Apple Slices – There is some history to both of these items. When the apple pie was first introduced, McDonald’s offered it in its “fried” form. Over the years, McDonald’s moved from fried to baked as a way to help combat the health issues fast-food presented. Although it hasn’t hurt apple pie sales that much, there still are many customers out there longing for McDonald’s to return the apple pie to its original fried state.

When the apple slices were first set on the McDonald’s menu, they were called Apple Dippers. They came with a small container of caramel dipping sauce. Again, when McDonald’s began to introduce a more healthy menu, they removed the dipping sauce. Apple slices continue to sell in big numbers.

5. Egg McMuffin – This one is another item that is not shocking to see as one of the best selling items on the McDonald’s menu. There are many of you who need your breakfast fix and don’t get it at home. Jumping in the car to work, a quick stop at the McDonald’s drive-thru and you get what you need. The first iteration of the Egg McMuffin had creator Herb Peterson introduce it with a poached egg. Now, the messiness of a poached egg is no longer, but the end results are just as tasty.
6. Happy Meal – Yes, a true best-selling item on the McDonald’s menu since the first time it hit the menu. What makes it best-selling is not only can kids get their choice between a hamburger, a cheeseburger, or Chicken McNuggets, but they also get a popular toy. It is a win-win for kids around the world.
7. Snack Wraps – We know, you’re probably saying to yourself, Snack Wraps aren’t on the McDonald’s menu at the moment. True, they aren’t, but when they were they were extremely popular, making them the third best-selling item on the McDonald’s menu. The problem McDonald’s was having with them was that they were a complicated make. In terms of “fast food,” they were less than fast and because of how many people wanted them, it slowed down progress greatly. For that reason, McDonald’s discontinued them. Will they come back? Should they come back? Maybe McDonald’s is working on a speedier process to make that happen.
8. Big Mac – The biggest-selling burger worldwide. Who doesn’t love the two all-beef patties, special sauce, lettuce, pickles, and cheese on a sesame seed bun? It is music to any McDonald’s lover’s ears. For very good reason, the Big Mac sits as the number two best-selling item on the McDonald’s menu.
9. McDonald’s French Fries – Come on. We all knew this was number one and it isn’t even close. McDonald’s french fries rock and the world has proven it. A simple, but classic food, McDonald’s french fries are the absolute best-selling item on the McDonald’s menu. They account for nearly 75 percent of sales around the world. Impressive.

FINALLY

This one was an easy call. McDonald’s french fries are the best-selling item on the McDonald’s menu and if you combine them with a McDonald’s vanilla milkshake, you have a winning combination like none other. Trust us, give it a try.  – Source: MSN.

The company brings on former Welbilt executive Keri Llewellyn to lead the newly created group as president . . . .

Marcone Appliance Parts Expands to Commercial Segment

St. Louis-based Marcone, a distributor of home appliance, HVAC and plumbing repair parts, announced it’s expanding into commercial kitchen repair component distribution.

To lead the newly created Marcone Commercial Kitchen Group, the company tapped former Welbilt executive Keri Llewellyn as president and industry veteran EJ Morrow as chief commercial officer.

Llewellyn most recently served as group vice president and chief commercial officer at Welbilt, where she was responsible for the strategy and execution of sales and marketing for the North American business. Before her role with the manufacturer, she worked at TriMark USA, holding several senior leadership roles, including her latest role as vice president of operations for Orange County.

“I am thrilled to join the impressive company and team that Marcone is,” says Llewellyn in a press release. “Marcone’s extensive footprint with 14 regional distribution centers and over 125 locations combined with its proprietary e-commerce and warehouse management software makes it a great fit for us to provide parts for the vast array of commercial kitchen service agencies.”

Morrow joins the company with experience in senior leadership roles for commercial foodservice equipment manufacturers across several product categories, including hot, cold, fabrication, seating and decor. He also brings “extensive knowledge of the industry’s value chain, including the needs of manufacturers, dealers, service agents, and, most importantly, the end-users,” says Llewellyn. Source: FER Reports.

True Food Kitchen Reels in $100 Million Investment True Food Kitchen has three key objectives in the coming years, according to CEO Christine Barone—expand the footprint, launch smaller formats, and spread its better-for-you offerings to a greater customer base. All of those goals, and more, are expected to come true thanks to a recent $100 million-plus funding round, the largest investment in the chain’s 14-year history.

“This investment enables us to truly broaden our mission to help well-being through more accessible, real food,” Barone said in a statement.

The concept, which has 42 locations in 17 states from California to New Jersey, was founded in 2008 by Dr. Andrew Weil, who created the anti-inflammatory pyramid. Signature dishes include the Ancient Grains Bowl, Grass-fed Burger, and Edamame Dumplings. True Food Kitchen is one of the best examples of what FSR calls NextGen Casual, a category of full-service chains that put more emphasis on chef-inspired menus, convenience, culture, and décor. Since Barone came onboard in 2016, the brand has opened 30 restaurants. The most recent one came in Miami, the brand’s sixth location in Florida. The 11,291-square-foot dining room holds 385 seats.

“Food is absolutely functional,” Barone told FSR last year. “But it’s so much more than that. And I think what True Food Kitchen and this next generation capture is when you come in, food is also part of who you are. I dine at True Food and I’m part of True Food and I love True Food.”

The fundraising was spearheaded by existing partner Centerbridge Partners, a private-equity firm managing approximately $34 billion in capital and one that previously owned P.F. Chang’s for six-and-a-half years, and newcomers HumanCo and Manna Tree.

HumanCo—linked to celebrity investors like Nick Jonas and Priyanka Chopra—looks to build brands focused on healthier living and sustainability.

“True Food Kitchen is in a category of its own, with a mission perfectly aligned with HumanCo to help people live a healthier life through epic food experiences,” HumanCo founder and CEO Jason H. Karp said in a statement. “It’s an amazing, uniquely mission-driven brand that’s authentic, accessible, and unwavering at a time when a lot of health and wellness is not. While many companies are engineering man-made and synthetic products, True Food Kitchen looks to nature and farms for all of its food—and we believe this is how we can all build a better, more sustainable food system. Most of all, we love that it’s not just healthy food, but also delicious, craveable food with fresh and intriguing options using only the best real food ingredients.”

Similar to HumanCo, Manna Tree is an investment firm dedicated to improving health. It’s actively involved with growth-stage companies.

“Manna Tree is committed to improving human health through nutrition and found True Food Kitchen as a partner dedicated to that same mission,” Manna Tree cofounder and president Brent Drever said in a statement. “We’re looking forward to working closely with their management team and leveraging our expertise to help True Food Kitchen bring its revolutionary ‘better food for better living’ concept to a much wider audience.”

Other key investors of True Food Kitchen include Weil, Oprah Winfrey, Starbucks founder Howard Schultz, and Lion Capital. Bank of America Securities advised True Food Kitchen on the fundraising round. – Source: FSR.

HumanCo and Manna Tree join Centerbridge Partners, bringing in key investors that include Nick Jonas and wife Priyanka Chopra . . . .

True Food Kitchen plans to launch a new not-yet-named fast-casual brand next year in Phoenix.

The Phoenix-based chain announced a more than $100 million investment round on Thursday, capital that will enable the healthful brand to grow both the primary full-service concept and the smaller-format brand, which will have a different menu but the same focus on health and wellness.

It’s something True Food guests were asking for, said CEO Christine Barone, in an interview.

“If you look at our mission of helping people eat better and feel better, a lot of that needs to be done every day,” she said. “So if you look at our opportunity and what our guests are asking us for, it’s how we can be more a part of their everyday lives.

“So what we’re thinking through is a concept that has all the same beautiful pieces of our mission and how we source our food, but is also more convenient, a bit more for every day, something easy to take on the run or take home to your family, and really feel good about the choices that you’re making,” she added.

Details on the new brand are yet to be determined, but Barone said the smaller format will likely be between 1,800- and 2,500 square feet, more than half the size of True Food units, which range between 5,000- and 7,000 square feet.

The smaller brand will likely have counter service with some dine-in. The menu will also have a lower price point, and the first location will be designed for easy-to-go pickup. The company may also look at possible drive-thru formats down the road, she said.

Barone sees an opportunity to build off-premise sales, which account for about 30% of revenue currently, much of that through the company’s own channels.

She also sees demand for healthful to-go food at dinner.

True Food’s sales are split pretty evenly between lunch and dinner, but the new fast-casual brand’s menu will include healthful dishes that are warm and more hearty than salads for families looking for healthful later-daypart meals.

The company will also continue to grow the larger True Food units. Over the next two years, more than 10 are planned, and Barone hopes to move into some new markets as well as add to existing territories. Currently, the brand operates in 17 states.

Barone said the new funding brings in growth investors who want to help make the world a better place through food.

The funding round was led by two investment firms new to True Food: HumanCo and Manna Tree. The round is also supported by existing investor Centerbridge Partners, which previously owned P.F. Chang’s, a company that helped develop the brand from its early days.

Key investors in this latest round through HumanCo include Nick Jonas and his wife actress/producer/model/singer Priyanka Chopra. They are among a number of celebrity backers already behind the brand, including Oprah Winfrey and frequent Starbucks CEO Howard Schultz, as well as investment firm Lion Capital.

It’s the largest investment for the 42-unit chain, which was founded in 2008 by Dr. Andrew Weil, a pioneer of integrative medicine who has built the menu around an anti-inflammatory diet, along with prolific restaurant-concept-creator Sam Fox of Fox Restaurant Concepts.

P.F. Chang’s took a role in the early growth and then acquired a majority stake in True Food Kitchen in 2012. True Food stayed with Centerbridge after P.F. Chang’s was sold.

HumanCo has a history of investing in businesses that support wellness and sustainability, including the plant-based ice cream Cosmic Bliss, the grain-free pizza bite brand Snow Days and the gluten-free product line Against the Grain Gourmet.

HumanCo’s advisory board includes tennis star Venus Williams and former PepsiCo CEO Indra Nooyi.

Jason Karp, founder, and CEO of HumanCo, in a statement, described True Food as “an amazing, uniquely mission-driven brand that’s authentic, accessible and unwavering at a time when a lot of health and wellness is not.

“While many companies are engineering man-made and synthetic products, True Food Kitchen looks to nature and farms for all of its food — and we believe this is now we can all build a better, more sustainable food system,” he said in a statement.

Manna Tree also indicates a health theme across its portfolio, which includes 11 investments, including the greenhouse produce grower Gotham Greens, pasture-raised egg supplier Vital Farms, and organic, grass-fed beef producer Verde Farms, as well as the restaurant tech platform Cheetah. — Source: Restaurant Business.

The fast-casual Asian chain will use a Beyond Meat chicken alternative and give the dish a premium price.

As a premium dish, the plant-based version costs $1.25 more than real chicken. / Photograph courtesy of Panda Express.

Panda Express has taken the plant-based version of its famed Orange Chicken national this week, at least for a limited time.

Beyond The Original Orange Chicken has rolled out to the chain’s 2,300 units across the U.S. The dish uses a Beyond Meat alternative to chicken, and Panda Express officials say it is the first Asian chain to serve the product.

The dish was first introduced last year in Southern California and New York, and sold out in two weeks in some units, the company said. The chain’s chefs wok-fired more than 1,300 pounds of Beyond orange chicken in the first day alone.

Later, the dish was added to 70 units in ten markets. Starting Tuesday, it was available nationwide.

“Our team has been overjoyed by the undeniable excitement and incredible demand generated when we first introduced Beyond The Original Orange Chicken last summer as an innovative twist on our most iconic dish,” said Andrea Cherng, Panda Express’ chief brand officer, in a statement.

To celebrate, starting Sept. 26, guests who order the plant-based Orange Chicken online using the code “BEYOND” can receive another free bowl featuring an entrée of choice.

Since the meat-imitating Beyond and Impossible Foods products began appearing in grocery stores, and later foodservice,  prior to the pandemic, plant-based options have grown considerably among meat-serving restaurant chains, appearing in various forms on the menu at Burger King, Chipotle, KFC, El Pollo Loco, White Castle, Carl’s Jr., Dunkin’ and more.

McDonald’s, however, ended its test of the McPlant this year, which did not appear to generate much excitement.

One challenge is the cost of plant-based proteins, which typically command higher menu pricing.

At a Panda Express in Los Angeles, for example, the Beyond The Original version of Orange Chicken with white rice was priced at $9.25, while the real-chicken version was $8.  — Source: Restaurant Business.

Dine Brands Global, Inc. is planning to open four new IHOP restaurants in Qatar, launching the first location at the Gulf Mall in Doha in a few months . . . .

IHOP Set to Open New Locations in Qatar

The new restaurants were established through a franchising agreement with Mohamed Makawi, president of Eagles Landing Restaurants LLC. Mr. Makawi also launched IHOP’s first location in the United Arab Emirates.

“This partnership follows the tremendous success of our IHOP opening in Cairo, one of 10 new international IHOP locations opened this year, and our recently announced partnership in the western Kingdom of Saudi Arabia,” said Tony Moralejo, president of international and global. – Source: IHOP.

Qatar is IHOP’s fourth Middle Eastern market and signifies the company’s continued international expansion. – Source: Food Bsiness News.

The family bundle package, called “Fundle,” comes in a game-covered carrying container and saves parents up to $10 . . . .

MOD Pizza Hopes to Capture Busy Parents During Back-to-School Season with its Latest Offer for most families, back-to-school means pizza Really, all seasons mean pizza for families with young children, but the fast-casual MOD Pizza is positioning to win busy parents who need help getting dinner on the table this time of year.

Seattle-based MOD Pizza, for example, on Wednesday rolled out a limited-time family bundle dubbed the “Fundle,” which includes four custom pizzas, a “mega” salad, and four No Name Cakes, the chocolate/vanilla-cream cakes that resemble a familiar snack-cake brand. Officials say guests can save up to $10 for the meal, depending on location.

Available through Nov. 13, MOD’s Fundle comes in a convenient carrier that features fun activities that include the characters Al, Moxie, Flip, and Janis, such as a word salad search, Tic-Tac Fun, an ArtZone, a downloadable coloring book and music.

“With more customers than ever ordering ahead online or through the MOD app, we developed the Fundle to directly meet the needs of on-the-go families,” said Mark Shambura, MOD’s chief marketing officer. “And during the back-to-school season, when busy schedules are the norm, the MOD Fundle makes mealtime easier and a lot more fun.”

MOD also launched a campaign to search for the “Most Fun Family,” which could be selected to win a vacation, pizza party or box of swag. To enter, fans can submit a photo, story or video on Instagram or TikTok using the hashtag #MODSuperFunFamilyContest. The contest runs through Nov. 14. – Source: Restaurant Business.

Sahil Rahman, RASA cofounder, on how to thrive as an emerging restaurant in an emerging category . . .

The Leader is Embracing the Role of Introducing Indian Cuisine to Americans

When Sahil Rahman and Rahul Vinod, co-owners of Indian fast-casual concept RASA, were growing up, their fathers owned restaurants to create better opportunities for their children. It was not expected that one day, their children would go into the very same business to bring fast-casual Indian cuisine into the American public consciousness.

“Owning a restaurant was not a sexy job,” Rahman said. “The restaurants [that our parents owned] were insular in that they were focused on immigrant communities. As a result, you have the next generation not necessarily going into the restaurant industry. … We got good corporate jobs, but we boomeranged back into the restaurant industry.”

RASA is a four-unit, Washington, D.C.-based build-your-own-bowl Indian concept that’s focused on familiarizing white Americans with Indian cuisine. This task can be challenging while navigating questions of authenticity, cultural responsibility, and language. For example, Rahman said that he prefers the term “emerging cuisine” rather than ethnic, because of the racial implications of the latter word.

“Language is tricky,” he said. “Ethnic food as a category really bothered us because it basically just meant ‘non-white.’ So [I prefer emerging cuisine] even though Indian culture has been around far longer than American culture because it hasn’t entered the American mainstream quite yet.”

Rahman said that RASA has been dubbed the “Chipotle of Indian cuisine” and he has learned to embrace that role of finally introducing Indian cuisine to the Western world in a format that’s tuned into consumer needs and more modern than their fathers’ traditional Indian restaurants. But as the concept scales, Rahman is striking a balance between acting as a translator for his cuisine and still maintaining that sense of true connection to his culture.

“We don’t want to be some large organization that’s totally disconnected from a culture that might just see us as the hot new cuisine or as a dataset,” Rahman said. “We’re never going to just like Google ‘India’ and throw some décor on a wall or hire a bunch of consultants.” – Source: NRN.

Growing up: The Catalysts, Benefits, and Challenges of Indoor Farming

Earlier this year, Bowery Farming — the largest indoor farming company in the US — opened a vertical farm in Bethlehem, Pa., that is fully powered by renewable energy, includes an ultramodern water recapture and filtration system and uses proprietary data, artificial intelligence, and robotics that allow the company to grow more food, smarter. Using only a fraction of the land and water needed for traditional farms, the facility is able to supply fresh produce year-round to major retailers and independent grocers within a 200-mile radius.

Urban expansion, the coronavirus pandemic, and, most recently, the war in Ukraine have been catalysts for indoor farms. The industry has exploded in growth within the last decade, and now accounts for more than 56.5 million square feet of space and in 2020 held a value of $5.5 billion in the United States alone, according to research by Statista and Grand View Research. That number is projected to increase to $20 billion in the next six years, with the global indoor farming market expected to hit $88.2 billion in the same time.

“If we’ve learned anything from the past two years, it is that we are in a period of unprecedented disruption and uncertainty across our climate and geopolitical circumstances, which unfortunately is going to persist,” said Irving Fain, Bowery’s founder and CEO. “We are also seeing firsthand that our global food system is inextricably tied to these dynamics. … We are addressing the challenges in our system by growing food smarter for more people in more places.”

Why grow up?

Indoor vertical farms can create a near-perfect environment to grow plants without the use of pesticides and without the traditional weather-related issues traditional farmers face. Produce grown in indoor farms is becoming so prolific that 35% of tomatoes sold in the US last year were grown on indoor farms, according to data from Blue Book Services. In general, indoor farms are designed to increase crop yields by as much as 350 times the yield of traditional farming.

“It’s the ability to put production anywhere without considering climate,” San Francisco-based agricultural startup Plenty Unlimited’s CEO Arama Kukutai told The New York Times.

Plenty is among many startup indoor farming companies that are getting the attention of venture capitalists — the field has already drawn in more than $800 million in VC funding this year and investments in 2021 topped $1.2 billion, according to PitchBook.

Hamilton, Ohio-based 80 Acres Farms announced this summer that it would increase its production output of leafy greens, tomatoes, microgreens, and herbs by 700% over the next 18 months, thanks to the construction of two, 200,000-square-foot facilities in Kentucky and Georgia that will use 95% less water per pound than traditionally grown produce and will simultaneously minimize food waste.

“We’ve been developing next-generation technology that can grow all these crops in the same system,” said 80 Acres co-founder Mike Zelkind. “We’re ready, we have the design and at the same time, we have to fill the customer demand that we have been fortunate to generate to date. Our Ohio farms have been operating at capacity for more than a year. The only way to reach more people is to keep building.”

For the last five years, the company has also been testing growing strawberries and plans to add strawberry production to its facilities soon.

“Our strawberries today, I believe, are the best strawberries you will taste anywhere: they are pesticide-free, they are clean, but obviously we need to grow them at a level of profitability, and that’s what this farm will enable us to do,” Zelkind said. “Next is a lot more farms, but we will do it in a measured and thoughtful way.”

What are the challenges to overcome?

Though the benefits are many, indoor farming does carry a unique set of food safety risks, warn industry experts. In fact, according to a report released last summer by the FDA, ”the moist, warm environments in greenhouses and similar CEA operations can help support the growth of bacteria, including pathogens often implicated in foodborne illness outbreaks.”

Believing that produce grown indoors is automatically safer than that grown on outdoor farms is a common misconception, according to Ashley Eisenbeiser, senior director of food and product safety programs for FMI, The Food Industry Association.

“While indoor farming may reduce or eliminate some potential sources of contamination (e.g., wildlife, domestic animals, and birds flying overhead), food-safety risk factors associated with CEA operations remain,” Eisenbeiser wrote earlier this year. “In some cases, the food safety risks with indoor operations are similar to traditional operations, and in other ways, they differ and are similar to the risks in a manufacturing environment.”

For that reason — and because 85% of Americans trust that the products they purchase from their local grocer is safe — Eisenbeiser asserts that food safety risk factors must be assessed and controlled when sourcing indoor produce. That starts with measures such as implementing a supplier approval program, monitoring the safety performance of those suppliers, and acquiring produce from vendors who meet food safety regulation requirements set forth by organizations such as the Produce Safety and Foreign Supplier Verification rules created by the FDA and making sure they are certified and compliant with a Global Food Safety Initiative program such as the Safe Quality Food Institute.

Indoor farming also presents its own set of climate challenges — chiefly a carbon footprint that is significantly larger than traditional farms. According to a ScienceDirect study, growing one pound of tomatoes in greenhouse results in approximately six times the carbon footprint of tomatoes grown outdoors.

“The carbon footprint is the main hurdle we have to clear,”  Neil Mattson, who leads Cornell University’s controlled environment agriculture research group, told the New York Times. “Then greenhouses are a no-brainer.”

Join SmartBrief and a panel of industry experts on Sept. 8 at 2 p.m. ET to explore how vertical farming tools can help the industry build efficient and sustainable food systems. — Source: Join SmartBrief.