Listen Here

| |

Actionable
Takeaways

Validate unit economics before building in hardware:

Rajat secured early contracts before engineering anything. This wasn't just customer validation—it was economic validation. He identified that robotics companies fail when "they're trying to charge a human salary, but they're not able to provide the full set of tasks that a human is able to do in an eight hour shift." By selling first, Chef confirmed customers would pay for assembly automation specifically, not a general-purpose kitchen robot. For hard tech founders: pre-selling de-risks both product-market fit AND your business model assumptions.

Target the labor concentration point, not the obvious automation opportunity:

While competitors automated cooking (low labor intensity), Chef mapped the entire food production workflow and discovered assembly consumed 60-70% of labor hours. Rajat's insight: "One person can cook for 100 people or a thousand people. So even though the cooking process can take a while, you're amortizing it over a lot of people." This workflow analysis revealed where ROI actually existed. Founders should map labor distribution across their customer's entire operation, not just automate the most visible or technically interesting task.

Build your moat through training data and field operations density:

Chef's manufacturing focus isn't just about easier sales—it's strategic infrastructure. Rajat explained: "Today, Chef has done 80 million meals...If we can be really good at food manipulation, we have the biggest data set of training data...as we build more robots, our bill of material gets lower...We have people all over the country servicing these robots, which obviously those same people can service robots in restaurants." For AI-enabled hardware, your moat compounds through deployment volume, not just product features.

Reframe risk through contract structure, not just pricing:

Chef's breakthrough wasn't discounting—it was renaming their "site acceptance test" to a "trial." Rajat described the impact: "Literally exactly the same thing. It's kind of like you go to your Google Doc and you replace all SAT into trial. That has an immense impact on the sales velocity." The cognitive reframing transformed how buyers perceived commitment risk. For founders selling novel technology: audit your contract language for terms that trigger buyer risk aversion, even when the underlying mechanics protect them.

Trade show ROI multiplies through partner booth placement:

Rather than maximizing their own booth presence, Chef places robots in partner booths across the trade show floor. Rajat noted this approach yields more deal closures because "the champions saw the thing at the trade show." This isn't about lead volume—it's about removing skepticism. Manufacturing buyers don't believe flexible automation exists until they see it operating. For hard tech companies: distribute proof points across the physical spaces where your skeptical buyers already congregate.

Customer success IS your market education strategy:

In a nascent category with a "graveyard" of failed predecessors, Chef's market education relies entirely on reference customers. Cafe Spice scaled from 4 to 16 robots and now hosts prospective customer visits. Rajat's approach: give exceptional pricing to customers willing to become advocates. The conversion rate from a skeptical prospect visiting a working deployment far exceeds any other marketing channel. For category creators: your unit economics on early lighthouse customers should account for their sales force value, not just their revenue.

Conversation
Highlights

How Chef Robotics Produced 80 Million Meals by Mapping Labor Distribution Before Writing Code

The food robotics graveyard is extensive and expensive. Zume Pizza burned through hundreds of millions. Kernel, led by Chipotle’s former CEO, couldn’t make the B2C model work. Miso Robotics automated cooking—solving a problem with minimal ROI. The pattern is clear: well-funded teams with strong technical capabilities consistently fail at commercializing food robotics.

In a recent episode of BUILDERS, Rajat Bhageria, Founder and CEO of Chef Robotics, explained how his company avoided this fate through a counterintuitive approach: spending months mapping labor distribution across commercial kitchens before building anything, then selling contracts to validate unit economics before writing code.

The 60-70% Problem Everyone Missed

Most robotics founders start with technical capabilities and search for applications. Rajat inverted this. He spent the early months of 2019 exclusively conducting operator interviews. “We spent a lot of time in the early days really try to like talk to as many different food operators as we could. Really understand their pain point.”

The insight that emerged contradicted conventional assumptions about commercial food production. While home cooking makes prep and cooking the time sinks, commercial operations invert this completely.

“What I learned is that like 60 to 70% of labor is in the assembly side,” Rajat explained. The math is straightforward but non-obvious: “One person can cook for 100 people or a thousand people. So even though the cooking process can take a while, you’re amortizing it over like a lot of people. So you actually don’t need that many humans to do that work.”

Traditional automation already handles prep efficiently—industrial lettuce cutters for Trader Joe’s salads don’t require intelligence. But assembly requires manipulating ingredients with massive physical variability. Diced chicken behaves differently than sauce, which behaves differently than mashed potatoes. This variability meant hundreds of humans standing in 34-degree facilities doing repetitive scooping motions—a labor concentration point nobody had successfully automated.

Three Failure Modes of Food Robotics

Rajat’s competitive analysis revealed systematic failure patterns that informed Chef’s strategy.

The B2C stack: Companies like Zume tried vertical integration—building robots AND operating restaurants. “Even if you build a really good robot, like the hardware software, you’re ultimately a restaurant, you’re a tech enabled restaurant,” Rajat explained. “You got to do the branding really well, you got to do the culinary really well.” The fundamental issue: “The probability of robotic companies succeeding is low. The probability of a restaurant succeeding is even lower. And you’re stacking the probabilities together now.”

The wrong B2B problem: Miso Robotics focused on cooking automation—flipping burgers, frying chicken tenders. The ROI case collapsed under scrutiny. “The pitch of saying, okay, like, I’m going to get rid of this one person for you, and now you’re going to pay me 30, 40k per robot per year. And by the way, a robot sometimes fails, so you probably can still actually fully part ways with that person. So now you’re effectively double paying a little bit, it’s not super compelling.” One-to-zero automation only works when you actually reach zero.

Right task, wrong technology: Some competitors targeted assembly but used inappropriate technical approaches. Overly dexterous systems were too slow for production environments. Gravity-fed dispensers couldn’t handle variability. “If you cut an onion versus meat, it’s gonna be different. If Bob dices tomato versus you, it’s gonna be different,” Rajat noted. “So it’s just so much variability that technology, the dispenser idea doesn’t work.”

Chef’s technical bet: six-axis robots with vision systems could handle ingredient variability through intelligence rather than mechanical precision.

Contract Validation Before Product Development

Understanding the failure modes led Rajat to an unconventional sequencing decision. “I really want to do is actually this approach of selling before building. And so we spend a lot of time trying to get some early contracts before we actually kind of built anything to kind of validate if people even wanted it.”

This wasn’t customer discovery in the traditional sense. Rajat was validating specific unit economics: would customers pay $30-40K annually for assembly automation as a discrete offering? Failed competitors had tried charging human-equivalent salaries while delivering partial task coverage. “They’re trying to charge a human salary, but they’re not able to provide the full set of tasks that a human is able to do in an eight hour shift.”

By securing contracts pre-product, Chef confirmed the assembly-specific value proposition supported viable pricing—before investing in hardware development and before scaling operations.

Manufacturing Infrastructure as Competitive Moat

With validated contracts, Chef made their second strategic choice: target manufacturing facilities before restaurants. This sequencing wasn’t obvious—restaurants offer better visibility and more compelling narratives for fundraising and press.

But manufacturing provided compounding advantages that restaurants couldn’t match.

Training data accumulation: “Today, chef has done 80 million meals, more than all the other food robotics companies combined,” Rajat shared. This dataset became their technical moat in food manipulation algorithms. Volume matters for AI-enabled robotics in ways it doesn’t for traditional automation.

Field operations density: “The more robots we deploy manufacturing, the better our field operations and servicing gets better. We have people all over the country in the world servicing these robots, which obviously those same people can service robots in restaurants.” Geographic service coverage becomes a barrier to competition as density increases.

Bill of materials reduction: “As we build more robots, our bill of material gets lower. So we have this flywheel from the manufacturing side.” Hardware unit economics improve with volume in ways that software economics don’t—you need physical deployment scale to drive supplier negotiations and manufacturing efficiency.

This manufacturing-first strategy accepts lower initial gross margins and less exciting storytelling in exchange for infrastructure advantages that compound over time.

Cognitive Reframing: “Trial” vs “Site Acceptance Test”

As Chef began closing manufacturing customers, they discovered that contract language created disproportionate friction in the sales cycle.

Their original structure included a “site acceptance test”—four production runs demonstrating the robot outperformed human benchmarks across key metrics before robotics-as-a-service fees activated. The SAT was designed to reduce customer risk by proving performance before payment.

Then they tested a simple reframe: call it a “trial” instead.

“We renamed the SAT into a trial. It’s like, hey customer, we’re gonna have a seven day trial. And then as soon as this seven day trial is done, then you’re gonna pay the recurring raspee. But literally exactly the same thing. It’s kind of like you go to your Google Doc or your Word Doc and you replace all sat into trial,” Rajat explained.

The underlying terms remained identical—same performance requirements, same timeline, same risk transfer. But the cognitive frame shifted completely. “That has an immense impact on the sales velocity. Right. Customers just feel like, aha, there’s a trial. It just reduces the risk.”

The lesson: in novel categories, buyer psychology around commitment matters as much as actual contract risk. “Trial” connotes experimentation and reversibility. “Site acceptance test” connotes technical validation and permanence. The semantic difference accelerated enterprise sales cycles without changing Chef’s risk exposure.

Reference Customers as Sales Infrastructure

Chef’s customer success strategy treats early deployments as sales assets, not just revenue. This isn’t standard account management—it’s strategic investment in proof points.

Cafe Spice in New York scaled from four robots to 16, created case studies, and now hosts prospective customer site visits. “There’s some incentive for them to, you know, keep them, you know, to. They got a great price to do that as well,” Rajat noted.

The economics make sense for category creation: “These are manufacturing guys usually, so, like, they want to see it, they want to come to our office, they want to go to a current customer. They want to ship us their ingredients, and they want us to, like, demonstrate for them.”

Manufacturing buyers operate with high risk aversion and limited exposure to flexible automation. They don’t believe six-axis robots can handle food variability until they observe it functioning in production environments. Reference sites convert skeptics more effectively than any other channel—the unit economics on early lighthouse customers should account for their sales force value, not just their direct revenue contribution.

Trade Show Distribution Strategy

Chef’s trade show approach optimizes for proof point ubiquity rather than booth impressiveness. Instead of concentrating budget on a single large booth, they distribute robots across partner booths throughout the venue floor.

“We try to have booths, robots at partner booths. So like as many robots as we can at different parts of the trade show floor is really effective,” Rajat explained. “We’ve had a bunch of deals close, mainly because the champions saw the thing at the trade show.”

The strategic logic: manufacturing buyers attend trade shows to survey the entire landscape. Encountering Chef robots at multiple locations—partner booths, demonstration areas, different sections—creates the perception of market presence and technical maturity. It normalizes the technology through repeated exposure rather than a single impressive demo.

This distribution strategy works specifically because the technology itself is the skepticism barrier. Seeing multiple working units operating across different contexts removes the “too good to be true” perception faster than concentrated booth investment.

Operating Without Precedent

Rajat’s most candid insight addressed the fundamental challenge of category creation: the absence of playbooks.

“In SaaS, there’s 50 other companies I can look to and like, learn from. Like, in robotics, there’s not,” Rajat said. He identified Locus Robotics as the primary success reference—potentially heading toward IPO with $100-200M in recurring revenue. Beyond that, “there’s a few other companies that are kind of like in the similar kind of realm of Chef, like maybe one or two steps ahead…So there’s not a lot.”

The implication: “There’s no playbook. Like, I, I don’t have a playbook. I, I can’t tell you. Here’s how we kind of, here’s how we get to 100 million in revenue or a billion revenue. Like, we have to make the playbook.”

This absence of precedent affects every function—pricing models, sales cycle expectations, service infrastructure requirements, customer success metrics. SaaS founders can benchmark against dozens of comparable companies at similar stages. Robotics-as-a-service founders experiment in relative isolation.

Expansion Through Infrastructure Leverage

Chef’s near-term roadmap leverages the manufacturing infrastructure they’ve built. They’re expanding to Germany and the UK in 2026—geographic expansion enabled by proven unit economics and established field operations.

The medium-term plan applies accumulated advantages to lower-volume environments: ghost kitchens and fast-casual restaurants. “If we can succeed in primary packaging and manufacturing, great, now we learn how to manipulate food. We learn how to manipulate all these different ingredients,” Rajat explained. The training data, reduced bill of materials, and service network all transfer to restaurant applications.

Rajat’s long-term vision extends beyond Chef’s direct business impact: “If we can actually succeed in deploying tens of thousands and hundreds of thousands of robots, which frankly nobody manipulation especially, but generally in Robotics even has then I think we can kind of become a really good success story that other founders can be excited about.”

He sees potential to catalyze the robotics ecosystem the way ChatGPT catalyzed AI: “Food is one of those things that I think everyone resonates with. And I think if we can get to a point where we’re deploying hundreds of thousands of robots, I can imagine, like, young people being like, oh, I want to do robots.”

For now, Chef continues building the category—80 million meals produced, manufacturing customers scaling from 4 to 16 units, and expansion into new geographies. The playbook gets written one deployment at a time.

Recommended Founder
Interviews

Táňa Rulková

VP of Marketing of TipHaus

50+ Case Studies in 12 Months: TipHaus’s Marketing Playbook

Meredith Sandland

Meredith Sandland, CEO of Empower Delivery: $6 Million Raised to Power the Future of Food Delivery For Restaurants

Rob Carpenter

CEO of Valyant AI

Rob Carpenter, CEO of Valyant AI: $15M Raised to Tackle the Labor Shortage at Quick Serve Restaurants with Conversational AI

Tim McLaughlin

CEO and Co-Founder of GoTab

Tim McLaughlin, CEO and Co-Founder of GoTab: $26 Million Raised to Power the Future of Restaurant Commerce

Matt Wampler

CEO and Co-Founder of ClearCOGS

How ClearCOGS used building in public on LinkedIn to land enterprise customers in 6 weeks | Matt Wampler

Leif Magnuson

Co-Founder and CEO of TipHaus

Leif Magnuson, Co-Founder and CEO of TipHaus: $8 Million Raised to Create the Future of Gratuity Management

Alex Sambvani

CEO & Co-Founder of Slang AI

Alex Sambvani, CEO & Co-Founder of Slang AI: $20 Million Raised to Power the Future of Voice AI for Restaurants

Kareem Azees

Head of Marketing of ResQ

Kareem Azees, Head of Marketing at ResQ: $40 Million Raised to Build the Future of Restaurant Operations

Clayton Wood

CEO of Picnic Works

Clayton Wood, CEO of Picnic Works: $30 Million Raised to Automate Pizza Making

Zach Rash

CEO and Co-founder of Coco

Zach Rash, CEO and Co-founder at Coco: $60 Million Raised to Bring Food Delivery Robots to Market

Zaedo Musa

CEO of Superb

Zaedo Musa, CEO of Superb: $14M Raised to Build the Guest Experience Management Category For Restaurants

Vivian Wang

CEO of Landed

Vivian Wang, CEO of Landed: $8 Million Raised to Solve the Restaurant Labor Shortage

Jon Carter

CEO and Founder of Prado

Jon Carter, CEO and Founder of Prado: $5.7 Million Raised to Improve Fresh Food Accessibility Nationwide

Andy Freivogel

CEO and Co-Founder of Science On Call

Andy Freivogel, CEO & Co-Founder of Science On Call: $4.4 Million Raised to Build the Future of Tech Support For Restaurants

Ty Wilson

CEO & Co-Founder of Tab Commerce

Ty Wilson, CEO & Co-Founder of Tab Commerce: $4 Million Raised to Build the Commerce Layer for Restaurant Supply Chains

Patricia Mejia

CMO of GoTab

The Clever Paid Ads Strategy GoTab Uses Win Against Well-Funded Incumbents

Marc-Alexander Christ

Co-Founder of SumUp

Marc-Alexander Christ, Co-Founder of SumUp: $1.5 Billion Raised to Help Small Businesses Around the World Accept Payments