HORECA CHALLENGE 2.0 by Damm Mediapro Torres Pepsico

Terms of the call

  1. GENERAL FRAMEWORK

HORECA Challenge is a joint initiative promoted by the companies SA Damm (hereinafter Damm; more information available at here), Mediaproduccion, SLU (more information available here), Familia Torres (Miguel Torres, SA); more information available here and Compañía De Bebidas Pepsico, SL (PepsiCo).

After a first Horeca Challenge where the objective was the recovery of the sector due to the effects of the pandemic, we approached this new edition with an eye on innovation as a transformation lever for bars and restaurants in our country. Through open innovation, the cooperation of both the Spanish and European startup ecosystems with the four organizing companies is sought to solve the main challenges facing HORECA businesses in Spain.

  1. APPROACH

The initiative does not seek direct development for the four organizing companies’ businesses, but the strengthening and recovery of the bars and restaurants businesses. Damm, Mediapro, Familia Torres and PepsiCo are aware that only by improving the economic health of the sector will it be possible to develop their own business activity under optimal conditions.

The analysis of requirements from which it starts and the challenges that arise from it, therefore, do not focus on Damm, Mediapro, Familia Torres or PepsiCo, but rather focus on the requirements and problems of the HORECA businesses. They are formulated from various research groups, inputs from commercial networks and information sharing between the organizing companies.

  1. CHALLENGES

The three challenges for this call are complementary to each other and only under an integrating approach of all of them will it be possible to generate the desired positive effects for bars and restaurants. They are as follows:

1) To enrich the delivery and take away channel services with digital content

How to get the delivery and take-away channel services to increase their value proposition to end users, so HORECA stores can perceive an increase in billing and a greater demand for their menu products through this channel.
Delivery and take away services are an important part of the business of HORECA stores, but the associated income and margin are lower than those received when customers physically go to their stores. We look for solutions that improve them. Some examples would be:

  • Use metaverses, video games and other digital experiences as a lever to increase the average ticket hence completing the value proposition that the end user receives with their order.
  • Reinforce the digital proposal along the ordering process that encourages the purchase of drinks, snacks and similar.
  • Encourage the consumption of products (beverages, snacks and similar) in delivery and take away orders through gamification.
  • Help baristas and restaurateurs to include new delivery and take-away models without involving additional difficulties in their management and use.

2) To boost the use of HORECA venues by incorporating new uses

Just as we want to reinforce the value proposition for the delivery services, we cannot forget about physical venues. Bars and Restaurants saw their income reduced considerably due to the consolidation of teleworking models, less influx to offices, a life more oriented to "leisure at home" and changes in daily habits. The reduction of the effects caused by the health crisis represents an opportunity to recover the use of the HORECA venues and incorporate new uses for them, providing restaurateurs and baristas with a greater flow of customers. As an example, we look for solutions such as:

  • New proposals that help to reinforce the HORECA venues as a meeting and socializing points.
  • Use of the HORECA premises as "new offices" where to find a venue that allows you to leave your home and "oxygenate yourself", without being pushed to go to the office.
  • Social platforms that distort the relationships between their users by using the HORECA premises as a place for a new socialization that recovers physical contact between people after a pandemic that kept us isolated from each other

3) To enhance the supply chain value for the HORECA channel

How through logistics, improving the sustainability (environmental but also economic) of processes and obtaining data throughout the channel, it is possible to improve efficiency in HORECA businesses and transfer it to a higher value perceived by end users. The third challenge not only involves restaurants or bars, but also physical / virtual events such as fairs and concerts, the traceability of which by the user can allow efficiency improvements when offering the services and products of the HORECA channel. At this point, the value perceived by the end user is key, and we look for solutions that help, among other, to:

  • Have a better follow-up on consumer habits and actions.
  • Offering to users more relevant services, proposals, products, content, etc ... tailored to their needs and past behaviors.
  • The digitization of logistics processes to make them more sustainable and more cost-efficient.
  • Protecting the environment by making the entire value chain reuse the waste generated to the maximum, reduce it and/or propose new business models based on its application.

** The organizers are looking for Spanish or foreign startups that are validly constituted as a legal entity and are operational and active developing their activity. These companies must justify in their application why their solution may be the ideal one to respond to one of the challenges. Likewise, the organizers admit the participation of Universities or Technological Development Centers through their students, doctoral candidates or researchers, as long as this University or Technological Development Center directs the application through a legal entity of its ownership and commits the human means and resources that guarantee the success of both the pilot and the subsequent escalation of the solution that would occur if they receive funds from investors.

Only one challenge per candidate will be admitted. In the event that they are able to attend two or more, they should opt for only one and make it know when applying.

Although the call is open to companies from all over the world, the pilots will be limited to the Spanish national scope and the candidates must justify their ability to deploy them in this territory. Likewise, if after the presentation of the results of said pilots, the startups get funds from investors to scale their solutions, the startups undertake to apply them as a priority to the Spanish market, without the expansion to others resulting an impediment.

  1. ASSESSMENT OF CANDIDATURES AND CRITERIA TO BE USED

These will be the criteria that will be considered to select both the finalists and the startups that are winners of each of the three modalities or challenges:

  1. A) Focus on the challenge by the candidate startup.

Suitability of your value proposition to the challenge

  • Does your solution respond clearly, directly and effectively to the problem that the chosen challenge contains?
  • Do you organize your processes and operations towards the effective resolution of the challenge?
  • Do you solve the challenge efficiently using fewer resources, achieving a better result, spending less time, or achieving greater scale by doing so?
  • How relevant is the proposed solution when compared with that of the other competitors who are candidates to solve the same challenge?
  • Is the startup capable (currently or potentially) of deploying not only the pilot of the challenge but also a solution that scales to the entire market later?

Previous experiences in solving similar challenges

  • Have you solved problems like the one posed in the chosen challenge?
  • If you have not solved challenges the same as the one chosen, do you have valid tools and capacities to solve this challenge?
  • How long did it take you in the past to deploy similar solutions?
  1. B) Team of the candidate startup.
  • Complementarity of the team, capacities of its members, adequate and sufficient size to be able to successfully face the challenge.
  • Full dedication by team members to the activity.
  • Knowledge of the Spanish HORECA sector.
  • Ability to dialogue and relationship with bars and restaurants in the Spanish sector to be able to integrate their inputs and adjust their solution in view of them.
  1. C) Economic model.
  • The proposed solution, in addition to being valid in time and place, relevant, effective and efficient, is it economically sustainable? In other words, will the startup be able to develop a viable economic activity from it?
  • Is an acceptable, desirable and acceptable integration foreseen for bars and restaurants?
  • Will the startup's activity generate a win-win model with bars and restaurants?
  1. D) Technology and certifications.
  • The technology on which the proposed solution is based, is it proven?
  • Are there certifications of the same that ensure its sanitary validity, security in its provision, financial solvency, its quality, etc., according to the case and the challenge?
  1. E) Presentation.
  • Attractiveness, clarity and adjustment of the argument of the candidacy for your challenge.
  • Adjust to available time.
  • Making the presentation materials available to the promoters so that they can make a deeper and more consensual assessment later.
  • Use of technical, graphic and visual means to provide a better presentation.
  1. APPLICATION PROCESS

The startups that want to bid for one of the three challenges must do so through the registration link that will be found at the URL www.horecachallenge.com and which in turn will lead to an enviroment attached to the F6S platform. Candidate startups must create a public profile (or have one previously created) that they will link with the HORECA CHALLENGE BY DAMM, MEDIAPRO, FAMILIA TORRES AND PEPSICO initiative.

All applications must accept the legal terms, privacy policy and other clauses of the URL www.horecachallenge.com and the F6S platform to be eligible and selected as finalists or winners of this initiative.

  1. CALENDAR

The milestones of the HORECA CHALLENGE BY DAMM, MEDIAPRO FAMILIA TORRES AND PEPSICO call are as follows and will take place on the following dates:

1-Presentation of the initiative and start of applications reception: December 20, 2021.

The registration period will begin at 12:00 noon on December 20, 2021. The public presentation of the initiative will also take place on that day.

2-End of applications reception: February 6, 2022.

Applications received after the end of this period (11:59 p.m. on February 6, 2022) will not be considered or evaluated by the organizers.

3-Announcement of the semi-finalist startups in each challenge: February 10, 2022.

On that date, the 6 semifinalist startups for each challenge will be announced. The organization reserves the right to declare one or more of these finalist places void in each of the three challenges if it considers that the quality of the proposals received does not justify the nomination of the 6 candidates for each of them. The selected startups will be contacted through the means that they have indicated in their registration process. In this contact, each of them will be informed of the date, time and details related to the presentation of their bid in the corresponding semifinal. It will occur by telematic means (videoconference)

4-Private pitch for the semifinalists: February 16, 2022.

On Wednesday 16 there will be a private session between semifinalist startups and the organizing corporations. Each startup will have 10 min to pitch and 5 min to answer questions. It is an essential requirement that the startup pencil down this event on its agenda as it will be disqualified if not attending.

5- Announcement of the finalist startups: February 18, 2022

After the presentations of the 18 semifinalists to the corporations in a private environment and subsequent deliberation, the 9 winning startups will be announced by the established terms along the application process.

6-Public pitch of the finalist startups: from February 28 to March 2, 2022

The pitches will take place in a hybrid and public event that will be held at the DAMM Office in Barcelona on one of the mentioned days. The finalists may choose to attend in person or connect remotely to pitch their solutions. Throughout that day, the 9 finalist startups will make their presentations, 3 in each of the 3 challenges. The organizing corporations will assume a maximum of € 300 per startup destined to cover the expenses derived from their physical attendance at the event. In addition, they will also be provided with tickets to attend the MWC that will take place in Barcelona on those days.

7-Announcement of the 3 winning startups (one per challenge): March 10, 2022.

The deliberation of a jury will take place after attending the pitches for the 9 finalist startups (or those that are classified if there are empty places). The four corporations may invite representative institutions from the HORECA sector, the investment arena or organizations that promote innovation and entrepreneurship. The jury will have until 11:59 p.m. on March 10, 2022 to take a decision on which are the 3 winning startups and communicate it to them. This decision will be published on the website horecachallenge.com.

The organization reserves the right to leave one or more of the categories vacant in the event of finalist applications quality is not considered sufficient. Furthermore, the organization will choose a reserve startup in each category just in case the winning startup could not execute the pilot or its subsequent presentation in Demo-Day and escalation.

8-Start of the pilots of the winning startups of each challenge: April 1, 2022

From the communication of the 3 winning startups and until the start of the pilot connected to their corresponding challenges, the organizers will agree on the details and the planning of the same with each one of them, who must present their implementation plan so that it can begin. on April 1, 2021.

9-End of the pilots of the winning startups of each challenge: August 31, 2022.

After 3 months from their start, the 3 pilots will come to an end on August 31, 2021. During that period, each of the winning startups undertakes to hold biweekly monitoring meetings with the committee established for this purpose (formed by a member of each of the organizing companies). In these meetings, the startups will report the progress of their pilots and will seek all possible support to ensure the greatest success of the pilots. Once the pilot is finished, the 3 winning startups agree to prepare a report that includes the results observed in it, as well as the lines that should regulate its escalation in the event of obtaining financing after the Demo-Day.

10- Demo-Day and presentation of the pilot results to society and investors: September 20, 2022.

The organizing companies of the initiative will hold a Demo-Day to which they will invite prominent actors from the investment ecosystem. The objective of this Demo-Day will be to present the results report of each of the three pilots, as well as the lines of action and financial means that each of the 3 startups propose to scale their solution.

In view of these reports and the presentations, investors may make investment proposals to the startups. None of the organizers intends from their mediation to obtain economic return, any percentage of ownership of the startups or commission on the investment figure received by the startups. The objective for both Damm, Mediapro, Familia Torres and Pepsico is to help the HORECA sector. As long as the winning startups get funds, the chances of reaching this goal will be greater.

* Note

The dates and the different phases established in this call may be modified and / or adjusted by the organizers (Damm, Mediapro, Familia Torres and Pepsico) if necessary, force majeure or for reasons that motivate a better functioning of the program. In case of any modification, they will be published on the landing located at www.horecachallenge.com.

  1. PILOT CO-FINANCING

The organizing companies undertake to co-finance with EACH of the winning startups up to a maximum of € 6,000, which will be released as their respective pilots develop in 3 milestones:

  • € 2,000 at the start of the pilots, before the end of April 2022.
  • € 2,000 after exceeding the 6 weeks of the pilot, before the end of May 2022.
  • € 2,000 upon completion of the pilots, before the end of June 2022.

The payment of these amounts is conditioned on the effective compliance by the 3 winning startups of their commitment to dedication to the challenge that is the object of the collaboration. The non-biweekly periodic report of the progress of the pilots, their results, the data obtained in their execution or the lack of participation in the fortnightly monitoring meetings may be the reason for the termination of the relationship and, therefore, the delivery of the funds committed. Likewise, the organizing companies reserve the right to claim the return of said amounts if bad faith or fraudulent behavior on the part of the startup is demonstrated, for example by falsifying data, hiding relevant information or failing to perform their duty of each one of the pilots.

The winning startups commit themselves to sign a contract to regulate their relationship with the organizing companies in a specific contract. It will be necessary for the execution of the pilot and its subsequent presentation at the Demo-Day. This contract will regulate all the aspects (without excluding others) expressed in these rules and others that may be related with their adequate dedication to the purpose of the pilot, its subsequent escalation in case of receiving investment or being able to give the organizing companies preferential rights in the contracting of their services, the investment in them if any of them decides to do it, etc. The refusal to sign this contract will result in the assignment of the rights as a winning startup to the one that had been designated as the reserve on its category.

If the projects were delayed to what was initially established, the maximum payment period for each milestone would be delayed for the same period that the project was delayed.

In the event that any of the Startups within a period of 1 year since the solution is considered fully completed wants to sell it to a third party, the 4 companies will have a preferential purchase right, having the right to match the best offer received, with the understanding that the purchase can be made to each of the companies individually.

The 3 finalist startups must keep the strictest confidentiality of the entire project, not being able to disseminate or share the project until the 3 companies expressly authorize this until the end of the year of exclusivity referred to in section 1.

  1. PERSONAL DATA

The personal data of the participants in these bases will only be used for the management of the entire participation process and subsequent development of the different winning solutions.

The data controllers will be the 4 organizing companies of the HORECA Challenge

In compliance with the provisions of Regulation (EU) 2016/679 of the European Parliament and of the Council, of April 27, 2016, on Data Protection, the Companies expressly state that:

  1. a) The personal data of the participating natural persons, on their own behalf or as representatives of the corresponding legal persons, as well as the persons of their respective organizations designated as "contact persons", will be processed by each of the Companies with the sole purpose of managing HORECA Challenge, and to be able to direct through it as many communications as necessary.
  2. b) Except for legal obligation, the data of such persons will not be communicated to any other company, nor will they be used for any other purpose.
  3. c) Such data will be kept for all participants as long as the 3 winners have not been chosen, plus an additional period of 3 years to attend to possible claims for the use that may have been made of them and as far as the 3 winners are concerned. They will keep your data as long as there is communication between them related to the winning solution plus an additional period of 3 years to attend to possible claims for the use that may have been made of them.
  4. d) Natural persons may exercise their rights of access, rectification, cancellation, opposition, limitation of treatment and all those legally provided for in writing, understanding their request and accompanying a copy of their ID. addressed to dpd@mediapro.tv