Embargo, a UK food tech SME, is building an AI-powered customer relationship management tool that helps small restaurants and food businesses boost sales and cut waste by suggesting personalised menu items to customers. Most small food and drink businesses cannot afford the advanced data analytics that large chains use to understand their customers. This leaves them at a serious disadvantage, especially when profit margins are already thin and many are struggling to survive. The problem is widespread: the vast majority of the sector consists of SMEs, and thousands have closed recently. If the software works as intended, it could give small businesses a practical, affordable way to compete. By analysing point-of-sale data, the system would help owners promote high-margin dishes and seasonal specials while reducing the amount of food that goes unsold. For the customer, this might mean seeing a well-timed suggestion for a dessert or a lunch special. For the business, it could mean the difference between staying open and closing down. The project also supports broader government efforts to digitise small businesses, helping keep independent restaurants and cafes on high streets rather than ceding the ground entirely to large chains.
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Embargo is a UK-based food tech SME led by Tsewang Wangkang (project lead, CEO) and Reza Samiei (technical lead, developer). While larger food and beverage (F&B) enterprises utilise advanced technologies for crucial customer insights and analytics, these capabilities are unaffordable for SMEs, especially those in underserved areas, which represent approximately 75% of the sector. F&B SMEs employ more than 800K people in the UK, yet over 6K F&B Businesses went out of business in 2023, with a loss of c. 127K jobs in Accommodation and Food Services were lost since Dec 22, even as larger chains scaled up. Low restaurant profit margins of 3-5% and 60% of consumer spending less eating and drinking out are threatening the financial stability of SMEs. Furthermore, on delivery platforms, restaurant margins are almost zero. If left unresolved, this problem will damage the F&B industry's long-term sustainability, with only larger chains surviving on the UK's high streets. Embargo is developing affordable, AI-powered CRM software for SMEs in the F&B sector. Embargo's innovative solution boosts seasonal specials and high-margin items while lowering food waste by up to 25% through personalised upselling and cross-selling. It provides a 160-fold cost advantage enhancing the sector's competitiveness and sustainability. Embargo's product will help the UK become a leader in the fast-growing global CRM market. Utilising Embargo's sizeable database powered by point-of-sale information, this innovation offers unparalleled personalisation and repeat revenue opportunities. By enhancing customer engagement, Embargo's software can triple delivery and pick-up margins and boost sales by up to 15% for SMEs. This groundbreaking project aligns with government digitisation initiatives.
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