LUBS5209M - Entrepreneurship & Enterprise Creation: Spyce Kitchen

This report provides a detailed analysis of Spyce Kitchen, a robotic-powered restaurant founded by four MIT mechanical engineering graduates: Luke Schlueter, Michael Farid, Kale Rogers, and Brady Knight. The report explores the background of the entrepreneurs, their business model, and the sociological framework behind their venture. It highlights their innovative approach to providing healthy and affordable meals to college students through the use of robotic technology. The analysis concludes that Spyce Kitchen represents a significant contribution to the world's economy by offering a new direction towards growth and development in the quick-service restaurant industry, despite the challenges of converting a theoretical idea into a real-world business.

Running head: ENTREPRENEURSHIP
Entrepreneurship and Enterprise Creation
12/25/2018

ENTREPRENEURSHIP 1
Table of Contents
Introduction................................................................................................................................2
Entrepreneur...........................................................................................................................2
About Spyce Kitchen.............................................................................................................5
Background of the Entrepreneurs...........................................................................................5
Processing in the restaurant................................................................................................6
The Sociological Framework/model......................................................................................6
Business Model......................................................................................................................7
Opportunity Business Model for Spyce Kitchen...............................................................7
Conclusion..................................................................................................................................8
References................................................................................................................................10

ENTREPRENEURSHIP 2
Introduction
Entrepreneurship is the introduction of new venture mainly small ventures to emerge the
groundbreaking ideas of the entrepreneurs. Therefore, the development or formation of small
enterprise is the precise influence of entrepreneurship in the world’s economy.
Entrepreneurship firms funded a huge share of jobs in the economy (Westhead and Wright,
2013). It offers entry-level jobs therefore, they are important for training and getting
experience for the untrained workers. Besides this, entrepreneurship is generally called as the
incubator of the innovation. Innovation generates disequilibria in the current state of order.
Living standard is the notion created on growing consumption of a range of services and
goods over a specific period by a family. Therefore, it is based on the accessibility of varied
products present in the market. Entrepreneurship offers different types of product of
numerous natures by their innovation (Thérin, 2014). The intent of this report is to increase
the understanding of the entrepreneurial process by researching a successful entrepreneur and
their enterprise. It provides an opportunity to critically evaluate their enterprise. The report
will talk four mechanical engineering graduates that are Luke Schlueter, Michael Farid, Kale
Rogers, and Brady Knight who became entrepreneurs by introducing robotic-powered
restaurant in Boston. The name of the restaurant is Spyce Kitchen.
Entrepreneur
An individual in place of working in an organization founds and run his own small business,
assuming all the rewards and risks of the venture. The entrepreneur is normally considered as
an innovator, a basis of innovative ideas, services, goods, and procedures of the business.
Entrepreneurs perform an essential role in the country’s economy (Feld and Wise, 2017).
They are the individuals with initiative and skills that are required to forestall current as well
as future needs and carry good ideas in the market. Entrepreneurs who get successful in

ENTREPRENEURSHIP 3
dealing with the risk of the new venture are rewarded with fame, growth, profits and
development opportunities. Those entrepreneurs who fail in establishing successful venture
they bear losses (Williams, 2017). Entrepreneurship is also known as the key resource
essential in the production. They generally deal with numerous hurdles while creating their
businesses. The most common challenges present in the environment are employing talented
staff, obtaining financing, and overcoming bureaucracy.
An entrepreneur is the one who creates a business model, obtains the required human and
physical capital in order to initiate a new venture, and operationalizes it and is accountable
for its achievement or failure (Tvede and Faurholt, 2018). In order to be a successful
entrepreneur, it is very important to have leadership quality. Quality of a leader help
entrepreneur to encourage its teammates to work will full enthusiasm and zeal to attain the
goals and objectives of the business. There are different types of entrepreneurs, some of them
are explained below
Trading Entrepreneur
As the name reflects, the trading entrepreneur carries out the trading activities. They buy the
finished goods from the producers and vend these to the patrons’ straight or through a
mediator, that is a retailer. The trading entrepreneur works as an intermediary, such as
dealers, retailers, and wholesalers between the manufacturer and end user (Johnson, 2015).
Manufacturing entrepreneur
The manufacturing entrepreneurs are those entrepreneurs who produce goods. They
recognize the requirement of the consumer and then discover the technology and resources
that will be utilized to produce the good to content the needs of the customer. In similar
words, these kinds of entrepreneurs transform raw materials into finished goods.
Agricultural Entrepreneurs

ENTREPRENEURSHIP 4
The agricultural entrepreneurs are those who start an agricultural business. They perform a
variety of agricultural activities such as advertisement of the agricultural product,
mechanization, cultivation, technology, and irrigation.
Technical Entrepreneur
Technical entrepreneur is those who introduce and operate technology and science based
industries. These entrepreneurs make use of technology and science in their business
operations. They also utilize innovative and new production methods in their business
(Dermer, 2016).
Non-Technical Entrepreneur
Depending on the utilization of technology, entrepreneurs do not have technical knowledge
as known as non-technical entrepreneurs. Science and technology are not the specialties of
their business. They are involved in the utilization of imitative and alternative approaches of
distribution and advertisement strategies such that their business can thrive and survive in the
competitive market.
Private Entrepreneur
An individual who set up the business enterprise is known as a private entrepreneur. She/ he
is the only proprietor of the business and tolerate the complete involved risk (Ringer, 2012).
State Entrepreneur
State or the Government starts the industrial or trading venture, is called as state entrepreneur.
Joint Entrepreneur
When a business is established with the joint efforts of government and private entrepreneur
is called as joint entrepreneurs.
Small Size Entrepreneur

ENTREPRENEURSHIP 5
An individual who has invested in the machinery and plant of the business of up to Rs 1.00
crore is known as a small-scale entrepreneur.
Medium Size Entrepreneur
An individual who has invested in the machinery and plant of the business more than Rs and
less than Rs 5.00 crore is known as a medium-scale entrepreneur.
Large Scale Entrepreneur
An individual with the investment in the machinery and plant of the business of more than Rs
5.00 crore is known as a large-scale entrepreneur (Cannon, 2015).
About Spyce Kitchen
Farid and three of the co-founders that are Luke Schulueter, Brady Knight, and Kale Rogers
of Spyce Kitchen started the business three years ago while studying at MIT. The founders
did not have detailed knowledge regarding preparing food not even they had funds to invest
in the restaurant; therefore, they hired Daniel Boulud as a chef who also invested in the
business and aids as its food director. Boulud linked Spyce with the known chef that is Sam
Benson, who was employed at one of the restaurant of Boulud and today he served at Spyce
as an executive chef (Engel, 2018).
Background of the Entrepreneurs
The four founders of Spyce Kitchen i.e. Kale Rogers, Luke Schlueter, and Brady Knight and
Farid the MIT mechanical engineering graduate students, introduced the kitchen with the help
of seven autonomous work stations in order to prepare bowl-based menus by utilizing healthy
elements like gains, beans, and kale. As hungry students and teammates in water polo, they
had a feeling that there are no options for healthy food in the budget of students (Kim, 2018).
They decided to resolve the issue and introduced a "robotic kitchen" with the support of grant
money and around $3.8 million as the venture capital. The ownership structure of the

ENTREPRENEURSHIP 6
business is comprised of Michael Farid the CEO, Kale Rogers the COO, Luke Schlueter the
lead mechanical engineer, and Braden Knight the founder (Engel, 2018).
Processing in the restaurant
Guest walk up into the restaurant to the counter with a touch screen and select their favorite
meal to place their order. If there are any technical issues in the system the staff member
brings the menu to the customer table and take the order. Customers can select any of the
presented variety on the menu of vegetable-heavy dishes encouraged by food from different
places such as Morocco, Latin America, India, and Thailand. Salmon, eggs, and chicken are
the available choices for people who prefer protein. The restaurant does not offer beef in their
menu because of the concerns related to the sustainability of its production (Engel, 2018).
The Sociological Framework/model
Frank W. Young introduces the sociological framework of entrepreneurship. It is a theory of
change depending on the societies in the corporation of responsive sub-groups. To Young, a
group becomes responsive at the time when two circumstances coincide, the group is
suffering from low status gratitude and renunciation of access to significant social networks,
and it owns a superior variety of institutional resources as compared to groups in society at
the similar level of the system. The founder considered entrepreneurship as an organizational
portent and witnessed whatever else it may be; economic development includes an
organization of production resources (Shodhganga, 2010).
The Spyce Kitchen is also introduced to support college students in having a healthy meal at
a very affordable price. Besides this, the business has provided a different definition of a
quick serving restaurant. It has installed seven robotic work systems in order to prepare food
for the customers.

ENTREPRENEURSHIP 7
Business Model
A business model is the plan of the business, which elaborates about the strategies that will
be used by the business to earn revenue and generate profit. It provides the detail report of the
manufacturing and promotion of services and products. Besides this, it explains different
strategies that will be used by the company to promote its services in the market. In other
words, a business model represents a systematic action plan for successfully running the
business in a precise marketplace (Osterwalder and Pigneur, 2013).
Opportunity Business Model for Spyce Kitchen
Higher Purpose
Opportunity Space
The advanced robots preparing
food for the customers are the
opportunity space. They can
prepare any type of food depending
on their programming.
Capabilities
The business requires more
technologies that are
advanced in order to expand
the business in different
markets.
Skilled and Experienced staff
for the restaurant
Value Proposition
The Spyce Kitchen will offer
healthy and tasty food at very
affordable prices that will enforce
customers to visit again.
Who are the
most important
customers?
Who are the
users at the
heart of the
model?
What are
the most
important
costs?
What are
the sources
of revenue?
How will you
reach the
customer?
How will you
engage with the
user?
Introducing

ENTREPRENEURSHIP 8
Spyce Kitchen
will majorly
target college
students, as the
motive of the
restaurant is to
offer healthy
options at
affordable
prices.
The users are
college students
and the one who
want to taste
food prepared
by robots.
Prices of the
food start at
$7.50 for an
entire meal in
a bowl.
All the four
founders are
a graduate
student, so
they only
have a single
source of
income that
is Spyce
Kitchen.
Public relations
Mass media
advertisement
Direct marketing
Sales Promotion
different contest
for students
Offering a
friendly
environment
Conclusion
The above report has conducted a detailed analysis of the four entrepreneurs that are Luke
Schlueter, Michael Farid, Kale Rogers, and Brady Knight the students of MIT mechanical
engineering. All four students are part of a water polo team and together they had a thought
that the college students are not able to get enough health meal in their limited budget.
Therefore, they decided to introduce Spyce Kitchen with robotic technology to prepare quick
and healthy food. The business majorly gives priority to the college students with the motive
to provide enough meal at affordable prices. From the analysis, it has been understood that
entrepreneurs are one of the important and significant resources of the World's economy that
provides a new direction towards growth and development. Considering the example of
Spyce Kitchen, it is not a different or a unique concept, but the emotion behind introducing
the restaurant is good. Moreover, there is a huge difference between presenting the idea in
theoretical concept and practicing the same concept in real life. However, the four founders

ENTREPRENEURSHIP 9
of the restaurant go success in converting their theoretical idea intro real one. Spyce Kitchen
will bring new restaurants in the market with unique concepts in the future.

ENTREPRENEURSHIP 10
References
Cannon, L.C. (2015) The Conscious Entrepreneur: A Guide to Maximizing Your Potential for
Success, Freedom, and Happiness 1st ed. U.S: One Tribe Press.
Dermer, M. (2016) The Lonely Entrepreneur: The Difference Between Success and Failure Is
Your Perspective 1st ed. U.S: BookBaby.
Engel, J. (2018) Spyce, MIT-Born Robotic Kitchen Startup, Launches Restaurant: Video
[online]. Available from https://xconomy.com/boston/2018/05/03/spyce-mit-born-robotic-
kitchen-startup-launches-restaurant-video/ [accessed 25 December 2018]
Feld, B., and Wise, S. (2017) Startup Opportunities: Know When to Quit Your Day Job 2nd
ed. U.S: John Wiley & Sons.
Johnson, K.D. (2015) The Entrepreneur Mind 2nd ed. India: Jaico Publishing House.
Kim, I. (2018) Four MIT graduates created a restaurant with a robotic kitchen that cooks
your food in three minutes or less [online]. Available from
https://www.businessinsider.in/Four-MIT-graduates-created-a-restaurant-with-a-robotic-
kitchen-that-cooks-your-food-in-three-minutes-or-less/articleshow/64356848.cms [accessed
25 December 2018]
Osterwalder, A., and Pigneur, Y. (2013) Business Model Generation: A Handbook for
Visionaries, Game Changers, and Challengers 3rd ed. U.S: John Wiley & Sons.
Ringer, R. (2012) The Entrepreneur: The Way Back for the U.S. Economy 2nd ed. U.K: Simon
and Schuster.

ENTREPRENEURSHIP 11
Shodhganga (2010) Entrepreneurship: A theoretical Framework [online]. Available from
http://shodhganga.inflibnet.ac.in/bitstream/10603/64899/8/08_chapter%201.pdf [accessed 25
December 2018]
Thérin, E. (2014) Handbook of Research on Techno-Entrepreneurship, Second Edition: How
Technology and Entrepreneurship are Shaping the Development of Industries and Companies
3rd ed. U.K: Edward Elgar Publishing.
Tvede, L., and Faurholt, M. (2018) Entrepreneur: Building Your Business From Start to
Success 1st ed. U.S: John Wiley & Sons.
Williams, N. (2017) The Kinfolk Entrepreneur: Ideas for Meaningful Work 1st ed. U.S:
Artisan Books.
Westhead, P., and Wright, M. (2013) Entrepreneurship: A Very Short Introduction 1st ed.
U.K: OUP Oxford.