A national trend of explosive growth in restaurant and grocery food tech also is being realized in Madison, according to a panel discussion at the monthly Wisconsin Innovation Network luncheon held Tuesday at the Sheraton hotel.

Those segments have seen investments increase from $50 million in 2013 to more than $1 billion this year, said Tim Philosophos, an angel investor in Fetch Rewards, which also received funding from BrightStar and the WEDC this year, and EatStreet, which closed a $10 million Series B at the end of 2014.

“There’s a lot of growth yet to come,” Philosophos said, citing examples of the market penetration in other countries.

In particular, Wisconsin Grocers Association President and CEO Brandon Scholz mentioned that food tech companies that focus on improving the customer experience (e.g. customer service) have the most potential. 

“Our industry is extraordinarily traditional,” Scholz said. “It’s these apps that bring customers to the store or keeps them shopping in the store … that will entice grocers to use them.”

GrocerKey CEO Jeremy Neren agreed, explaining the importance of creating an “omni-channel experience.”

“Consumers are shopping more stores online,” Neren said. “We need to find a way to meet the consumers’ needs at any stage (of shopping).”