Elevate Capital

Jul 31, 2023

Startups that are creating innovations in the hospitality industry, particularly those founded by minorities, will play a pivotal role in shaping the industry's future success. Nitin Rai Founder and Managing Partner, Elevate Capital Image Innovation has become a key driver in the hospitality industry's success, as businesses strive to stay competitive and ahead of the curve. As technology continues to reshape how we travel, stay and dine, businesses must embrace resourceful solutions to address their challenges. While the hospitality industry has made strides since its slump during the pandemic with leisure travel reaching high rates, operators face several obstacles. High labor costs and reliance on employees to provide guest experiences, heavy competition and staying up to date with the emerging technology advancements available are roadblocks to evolving and remaining competitive. Investing in Diverse Founders Startups that are creating innovations in the hospitality industry, particularly those founded by minorities, will play a pivotal role in shaping the industry's future success. These startups bring fresh perspectives, unique experiences, and innovative solutions to address customers' and operators' evolving needs and expectations. By investing in and embracing diversity and empowering underrepresented entrepreneurs, the hospitality industry can gain access to untapped talent and insights to drive meaningful change. An additional benefit:Startups by minority founders are oftentimes more attuned to the needs of diverse customer segments, allowing them to develop inclusive and tailored solutions to industry challenges. Supporting such startups not only fosters a more equitable industry but provides businesses with the tools to remain competitive in today’s market. Rethinking Food Delivery The rise of food delivery services has presented the hospitality industry with a last-mile challenge. Many people aren’t willing to travel far or wait in long lines to pick up lunch in the middle of a busy workday. Startups are working to revolutionize the food delivery system to address this. One example is Minnow Technologies , founded by Steven Sperry, which concentrates delivery near the consumer through centralized pickup locations rather than focusing on delivering to people’s doors. Using the Minnow Pickup Pod , this innovative approach minimizes the footprint necessary for storing and distributing food while ensuring timely and efficient deliveries. Investing in underrepresented innovators like Minnow allows the hospitality industry to reimagine traditional food delivery models. By leveraging technology and optimizing delivery routes, businesses can enhance operational efficiency, reduce costs, and minimize their environmental impact, particularly when facing intense competition and high labor costs. Adapting to New Contactless Payment Technologies As technology continues to reshape consumer behaviors and expectations, staying ahead of the curve is paramount for companies to remain competitive. Among the various emerging technologies, contactless payments have emerged as a transformative force, revolutionizing how transactions are conducted. Embracing these new payment solutions enhances the customer experience and unlocks a range of benefits for businesses, including improved speed, security, and operational efficiency. PaerPay , founded by Derek Canton, is streamlining contactless payments for fast casual and fast food restaurants. In an era where speed and convenience are paramount, contactless payments have become standard for major brands. Yet smaller chains and small businesses often lack the budget or expertise to implement such systems. PaerPay provides a solution by offering an easy-to-use platform that seamlessly integrates with existing payment infrastructure. Not only do contactless payment systems enable fast and convenient service for customers, but they enable businesses to save on costs for both staff and training. Enhancing Operational Efficiency In the fiercely competitive hotel industry, operational efficiency is critical in optimizing guest satisfaction, cost management, and overall competitiveness. Streamlining operations, optimizing processes, and minimizing wastage improves the bottom line and enhance the overall customer experience. This allows for better resource allocation, reducing unnecessary expenses, and maximizing profitability. And as operators know, this extends to all facets of running the business, from the check-in process to keeping public spaces clean. TrayAway , an innovative solution founded by Josh Johnston, enables contactless hotel tray retrieval with customizable branding options. By implementing TrayAway's system, hotels can effectively track and retrieve trays, reducing clutter and enhancing the overall customer experience. Investing in innovators like TrayAway allows the hospitality industry to enhance operational efficiency and streamline processes. By reducing costs, minimizing waste, and improving the guest experience, hotels can maintain a competitive edge and deliver superior service. Driving Innovation, Inclusivity, and Long-Term Success By investing in underrepresented groups and their innovative solutions, the hospitality industry can embrace diversity and inclusion, gain a competitive advantage, and achieve sustainable growth. By promoting a range of perspectives and experiences, businesses can tap into a broader pool of ideas, drive innovation, and meet customers' demands and expectations.