New service Karma makes reduced food waste profitable

By on November 13, 2016

Through the new digital service Karma restaurants and cafes reduce their food waste to almost zero every day. In the Karma app they can upload the excess food that might otherwise be thrown away and Swedish consumers can buy the food as takeaway directly in the app and at a cheaper price. Karma, which was launched this week, has already signed a co-operation with heavy industry players such as coffee shop chain Waynes Coffee and Sweden’s leading wholesaler Martin & Servera.

A trial period with selected restaurants in Stockholm in early summer clearly demonstrated that users appreciated the app and restaurants reduced their food waste by over 50%, gained new customers and better insight into the purchasing behavior of their existing customers.

In Sweden discarded annually 500,000 tons* perfectly edible food, which corresponds to a carbon dioxide emission of 2 million tonnes. With Karma app, we want an easy way to reduce the environmental impact and allow more take advantage of the high quality food produced, says Hjalmar Stahlberg Nordgren, CEO and co-founder of Karma.

Today sells around 40 restaurants and cafes in central Stockholm its excess food through Karma, among other reputed Vassa Eggen, Nybrogatan 38 and Colony. The company connects about 5-10 new restaurants and coffee shops every week, and it currently has over 100 pieces that are ready to sell their excess food through the app. Among those who have joined in the past week can be mentioned the café chain, Wayne’s Coffee.

– Minimal environmental impact and sustainability is one of the cornerstones of Wayne’s Coffee’s business. When Karma came to us and explained how we can be the first coffee shop chain that helps to actively reduce food waste in a way that benefits everyone, it was an easy decision to join the service, says Daniel Nordström, product manager at Wayne’s Coffee with 130 cafés in the Nordic countries and operations in six countries.

To further reduce food waste in Sweden has Karma recently signed an agreement with the largest restaurant wholesaler, Martin & Servera. With Martin & Serveras nationwide organization will more restaurants and cafes across the country to easily enroll in Karma and offer their customers the new service.

As the leading restaurant wholesaler we look continuously at how we can reduce our own and our customers’ environmental impact throughout the value chain from supplier through us to the restaurant. With Karma tool, our customers, restaurants, an easy way to reduce food waste in the last part of the value chain – the final consumer. It helps restaurants and cafes to reduce their food waste, contribute to their profitability and exposing them simultaneously to more end consumers, says Robin Exman, business development director at Martin & Servera.

Karma is available today for iPhone, coming soon to Android and a user interface specifically for restaurants has been developed.

The results we have received show that the service works for users, restaurants and the environment. We now have all the conditions to take the Karma to the next level where, through an innovative solution contributes to maximum public benefit. We have an exciting time ahead of us, says Elsa Bernadotte, CFO and co-founder.

Behind the new Swedish service is founder team Hjalmar Ståhlberg Nordgren, Elsa Bernadotte, Ludvig Berling and Mattis Larsson. They have the background and experience of the companies Responster and Pop Fruits and trained at the School, KTH, LTU and the Karolinska Institute.

Co-owner of Karma is Foxhelm Ventures, DHS Ventures, DP Laurén Invest, Magnus Bergman, Lars Lindgren, Daniel Frodin, Mattias Miksche, Propel Capital II and STING. As well as some of Di Digital appointees to Sweden most powerful tech investors.

* Source: Environmental Protection Agency, estimates 2014

Food & Beverage