"These guys are the future" - Senior Executive, Unilever Food Solutions
We also thought Food Supply Network was the future. Until it wasn't. At least not for now.
In 2017 FSN launched a highly innovative, independent B2B trading platform that not only solved many of the pain points in the food services supply chain but also introduced functionality and network effects not previously seen before.
Buyers (restaurants), Suppliers (wholesalers) and Manufacturers (brand owners) could trade with one another through a single platform in a highly efficient manner that benefitted all. FSN had its early adopters and monthly order counts and order values were growing at double digit percentage rates for much of 2018 and 2019. The largest FMCG brand owners were listing their products in our product library and FSN started operating in neighbouring countries.
Launching a highly innovative product and scaling quickly requires lots of capital, irrespective of how compelling the product may be (refer to Amazon, Uber, Airbnb). FSN managed to secure an investment from one of the world's leading technology investors which was a huge endorsement of our product and set us up for rapid scaling.
Then Covid-19 struck.
The restaurant industry shut down. User numbers dropped. Order values fell 90% or more. We all remember those dark days.
Thankfully the industry has since recovered remarkably quickly, and we can see from the order values of our clients that it is operating near or above pre-Covid 19 levels. Unfortunately the fund raising environment has remained challenging and in spite of our best efforts FSN could not raise the requisite capital to sustain operations and embark upon a new wave of rapid scaling.
For now we will pause operations, observe the industry and if the opportunity presents itself, start again.
We would like to thank all our customers for trusting in our product, the nearly R1.5 billion in orders placed through FSN confirms its value as a business tool.
A special thank you to all the brilliant FSN employees for embarking on an ambitious and exciting journey to reshape the food services industry, we know the product would have made a significant impact, timing just wasn't on our side.
If you are a buyer looking to place an order please go directly to your supplier's website.
If you are an investor in the food services industry and would like to discuss our software, please contact us at info@foodsupply.co.za.