Revolutionizing Food Supply Chains: How Burnt is Utilizing AI to Transform an Industry
Food supply chains have long been recognized as notoriously complex. With orders arriving through multiple channels and countless hours spent manually entering data into outdated software, operational inefficiencies are rampant. For decades, software vendors have attempted to streamline these workflows involved in the global movement of perishable goods, but with mixed results.
Enter Burnt, a Y Combinator startup aiming to tackle these challenges head-on. Their innovative solution leverages AI agents, designed to automate tasks typically handled by humans, to address the chronic inefficiencies that plague the trillion-dollar U.S. food market.
A Legacy Rooted in Food
Burnt’s co-founder and CEO, Joseph Jacob, brings a unique background to the table. Growing up in a family deeply entrenched in the seafood supply chain, Jacob learned about the industry from the ground up. His great-grandfather was the first to export shrimp from India to the U.S. in the 1930s, and each generation that followed has been involved in various facets of the seafood business, including farming, processing, exporting, and importing.
After spending formative years in India and working directly on the floor of a shrimp processing factory, Jacob returned to the U.S. and managed large volumes of seafood imports. It was here that he began to understand the profound inefficiencies that come with traditional supply chain management systems.
The Challenges of Outdated Systems
In his experience, Jacob found that tracking hundreds of millions of pounds of seafood was hindered by outdated Excel sheets and legacy ERP systems. “In a business with razor-thin margins, it’s nearly impossible to succeed without good supply chain management,” Jacob stated. His journey through multiple, often unsuccessful software implementations only fueled his desire to create a more effective solution for the industry.
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The problems Jacob faced aren’t isolated. Many companies in the food supply chain struggle with cumbersome software that requires extensive training, lengthy rollouts, and significant investment—often without delivering the promised results.
Burnt’s Innovative Approach
Jacob sees hope in integrating AI agents into existing systems rather than replacing them entirely—a significant shift that could allow companies to improve their workflows without the pain associated with traditional software updates. “Everyone we talk to calls their ERP a necessary evil,” Jacob explains. With AI, organizations can automate processes while retaining their established workflows.
Today, food distributors often juggle multiple order channels, including emails, phone calls, WhatsApp messages, and even faxes, necessitating manual data entry that consumes valuable hours. This is where Burnt’s first AI agent, Ozai, comes into play. Designed to automate order entry, Ozai is capable of managing 80% of workflows currently bogged down by legacy systems.
Early Success and Future Prospects
Since launching in January, Burnt has already processed over $10 million in monthly orders across various segments, including seafood and specialty food distributors. Notably, one of the largest food conglomerates in the U.K. is in the process of implementing Burnt’s systems. The startup is projecting steady month-on-month growth, currently generating six-figure revenue.
Despite the industry being traditionally resistant to new technology, Jacob underscores the importance of building trust. With a background rooted in the food industry, he and his co-founders have established credibility with potential customers, who may previously have been skeptical of external “tech tourists.”
Building Trust through Experience
Jacob’s firsthand experience at Rekki, a benchmark-backed B2B marketplace for restaurants and suppliers, helped him understand the brittle nature of supply chain technology and the potential role of AI in enhancing it. Together with Chief Product Officer Rhea Karimpanal and CTO Chandru Shanmugasundaram, who both have extensive backgrounds in the restaurant and software industries, Burnt aims to bridge the gap between tech innovation and food supply chain operations.
However, attracting investors wasn’t straightforward. While the AI sector is booming, Jacob had to make a compelling case to venture capitalists who were uncertain about the food distribution market’s size and potential.
Strategic Investment and Vision
It was Penny Jar Capital, spearheaded by NBA star Steph Curry, that recognized the opportunity within this overlooked industry. The firm focuses on backing founders who are pioneering technology in sectors still lagging in adoption. As Jacob notes, “Two decades of missed software adoption is a massive opportunity. Investors who understand this know it can be huge if executed right.”
With Burnt’s innovative approach, the landscape of food supply chains may soon see transformative changes—offering a glimpse into what a more connected and efficient future could look like for an industry ripe for disruption.
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