Employers, Weve Got You Covered! But then we looked in the data after a few weeks and we realized that nobody ever reordered it. ), sides, childrens meals, beverages and desserts. So six years ago youre sitting in a room and youre trying to figure out what are we gonna put on a menu. They dont consider it as its own space. Thats our space. It's about the service," Maloney said on CNBC. Incremental volume, you know, for a small business usually means its like extra business, its gonna be lower friction. Talk to me more about that, how that decision came to be and what its gonna look like? And if you want this kind of flexibility, you know, and thats, again, thats kind of our breakthrough. Then just try to beat each one first time, if you do you should get the achievement. Can you tell me a little bit more about that, that process and how that works? So then its like, okay, what item should we serve a first time customer, right? "We're seeing some significantly higher checks, but we're also seeing a great partner in DoorDash getting deliveries to the consumer in less than 30 minutes from the time they order,"Penegor said. Then they checked out how long it take? Its in the ether somewhere. Yeah. Overall, I love working for ClusterTruck - so overall, my experience is five stars. But what about the future? Use your Uber account to order delivery from ClusterTruck in Kansas City. With its light, crisp taste, Diet Pepsi gives you all the refreshment you need - with zero sugar, zero calories and zero carbs. It works like this: The food trucks share their proprietary recipes with ClusterTruck chefs and cooks. Right. Workers don't begin making the order until a driver has agreed to deliver it and is en route to pick it up. That, that all this came from, you know, you get an email, you see from chef Tim or chef James, or, you know, all of our, of our awesome chefs here at here in Indianapolis, you know, they built out that initial one. Related Candies from Brach's: Gummi Conversation Hearts: Blueberry Candy Cane: Royals: Jel Bunnies: Milk Chocolate Orange: Peanut Butter Cup Candy Corn : Percentages are based on a diet of 2000 calories a day. And were just like, dude, solve the 45 minute problem. Like nobody is doing anything close, you know, to the kind of volumes were doing most ghost kitchens that you read about do 10 or 15 orders a day. And if it was the first ClusterTruck item, you had, you are never coming back. So its gonna tell things when to fire, when not to fire, when to hold off. ClusterTruck is the latest food-related venture for Baggott, one of the chief architects of ExactTarget, which was sold in 2013 to Salesforce for $2.5 billion, and Compendium, which was sold to Oracle that same year for an undisclosed price. Crisp. So how did that decision, how did those decisions get made? They had warehouses and catalogs and, you know, they were shipping houses and plows in the 1800s out west. "It's a software company and it's a logistics companyand it's a food company because at the end of the day you've got to make good food.". So far, one on-premise kitchen has been opened in the Kroger supermarket in Fishers, Ind. And then we, you know, we tried some things, we learned what was good, what was not. What is, what are your plans to grow ClusterTruck for the next few years? Favored Hands Wow! if ( typeof LD == "object" ) { LD.initPage(); }. And like lets even narrow in, on like something youre popular for, that I think youre way ahead of the curve on and thats tots, right? We need all that to tie together. Brian probably told you, you know, something like 75% of our drivers started driving the week the kitchen where they work opened, like they never leave. The deliverys fees only $2.99 or whatever, but then theres this $8 service fee. The company's combination of food quality, freshness and delivery speed has brought it to the cusp of becoming a national player in food delivery. You know, I just started thinking about the problem, as well, you know. ClusterTruck has reported raising more than $30 million from investors since May 2015, according to Security and Exchange Commission filings, but the total is likely greater than that. You know, one of the things, as we look around it looks like a kitchen, so a little familiar, but its a ghost kitchen. I mean, thats always been about quality. They have the technology. You know, what items do we need to tweak, but data is what makes all that possible. Wendy's, for instance, is partnering with San Francisco-based DoorDash to deliver food from 2,500 of its locations. Uh, where is the customer and how can we maximize this process using machine learning and algorithms, um, to do that because a model didnt exist, we literally had to build the prototype kitchens to kind of make the software work. Join the 30,000+ people keeping up with the latest Indy tech news, stories, and events by signing up for our newsletter. Thats a huge breakthrough. And then we can see, you know, really cool things like return-rates. Right? We know whats happening with orders coming in. Its delivered by friendly, engaged people because we have the best job in the gig economy. So we have, seven total about to build our eighth. Follow him on Twitter:@JamesEBriggs. What whats different about your drivers compared to other drivers? That's what our investors are hiring us to do. And he was talking about this for Philly cheesesteak that, you know, painstakingly worked on this recipe to make this Philly cheesesteak taste good after 45 minutes. You know, I break UIs. We never start cooking until there is a driver ready, so your food will be hot and fresh Cooks are lined up along three aisles flanked bystainless steel tables. Had he taken delivery? I mean, theres David Chang, the famous chef. Frank Dale, the CEO of Indianapolis deal management company Costello Inc. and a former CEO of Compendium, who worked with Baggott, said he expects ClusterTruck to follow a path similar to those other ventures. You see the buffalo chicken wrap. So, you know, Ive seen UberEats, Ive seen GrubHub, everybody else. ClusterTruck is tapping into a surging demand for delivery across the U.S. Food-delivery sales are on pace to grow from $30 billion today to $220 billion by 2020, according . And he starts talking about small businesses and we bring them this incremental volume. The company offers a delivery-only kitchen, which provides hot and fresh food that is cooked to order, enabling consumers to get restaurant-quality food delivered to their home, work, or favorite haunts. Baggott insisted he doesn't have a specific exit in mind. Director of Customer Experience (Current Employee) - Indianapolis, IN - September 29, 2021. And thats of course, exactly whats happened. We've completely cut out the middleman ensuring you FAST and FREE delivery. How long that take? 15 days ago. Have you found that in certain areas, like for instance, are the, are there things on the menu in Kansas city that arent on the menu in Indianapolis? This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. And so now there are how many kitchens in the Indianapolis area? The company offers a, n voluptate velit esse cillum dolore eu fugiat nulla pariatur. Literally six years ago to this week. Virtual restaurants or, in the case of ClusterTruck, virtual food trucks lack well-known brands, but have their own advantages. It already has online ordering, but patrons have to pick orders up at the truck. So it all happens with these screens and were able to take over a lot of those processes here with technology. The other systems are all completely dependent on third parties and thats proven it doesnt work. Whats really fascinating to see is that our P-Mix, our product mix is almost identical between the kitchens too. So we can do really advanced analytics to know, you know, what are the items that we should push towards you? Right. Their eyes pivot, glancing up at monitors and back down to the food they're making an omelette, pad Thai and macaroniand cheese are among the mealsin production. So when we designed the ClusterTruck system, we decided to put drivers right in the center of it. ClusterTruck is disrupting the growing food delivery industry by putting the wellbeing of their drivers first. Editor's note: You can comment on IBJ stories by signing in to your IBJ account. What kinds of foods do we get complaints on when we launched, we launched with a um and we made all of this in-house, but a tofu kimchi vegetarian burrito, and it was one of the top five sellers. "But they're not able to control quality.". Food Delivery Driver - ClusterTruck. GENERAL NOTES AND TIPS. Japan-based SoftBank recently reached a deal to invest $300 million in DoorDash, according to Recode. Chris, thanks so much for your time today and opening up not only your office, but your kitchen to us to get a glimpse into what ClusterTruck is. A lot of it. Calorie breakdown: 57% fat, 34% carbs, 9% protein. A lot of it. ClusterTruck General Information. Like we think about diluting the driver pool. So I got a chance, as you mentioned to, to tour one of your kitchens today and, and talked to Brian, we talked a little bit about data and how important data is to whats going on in the kitchen today and how its informed, how youve gotten to where you are today. Its gonna be at a completely different level of maturity. That was a pretty successful outcome. "I've got all this experience on the technology and software side with ExactTarget and Compendium being sold to Salesforce and Oracle," Baggott said in a recent phone interview, backing up his billion-dollar claims. So were able to do that with a lot of cross-utilization ingredients. Different from the off-premise concept, the new concept will repurpose approximately 1,000 square feet at each participating store to create a culinary space for ClusterTruck staff to prepare meals . No matter what you crave, we make it all fresh in our own kitchenjust minutes before it's in your hands. So Brian well talk a little bit about menu, right? So software pretty much is basically the quarterback of the kitchen. So I mean, you noted that like, hey, it wasnt as easy to go into places like Denver or wherever else, but what else have you learned along the way that could be helpful? And so were sitting here with like this eight-year-old, like weve got like six years in it. And in our case, we had to own the kitchen. "I think they can keep expanding pretty quickly," Dale said. At its peak, he expects to partner with about 10 food-truck companies in town. And they were trying to see if a brand of Kroger delivery kitchen would work. So data is a huge part of ClusterTruck, and thats one of the really awesome parts about being this vertically integrated restaurant is that we have data from top to bottom from, you know, a traditional restaurant, you know, well, they know that they have a customer come in, they dont know who that customer is. All the things you have to learn to be in a restaurant business. So I looked him up and the food sat until he got it. You know, the hope was like, so were struggling trying to build boxes, right? Add all ingredients to a large bowl: keto nuts, almond flour and keto honey. They sold everything. So, um, right in the middle of it. ClusterTruck, Inc. All rights reserved. Yeah. Yeah. Right? Win whats next. Sears had everything thing, right? "It's like Amazon," Baggott said. Yeah, totally. The kitchen is the hardware, like a cellphone or computer, and ClusterTruck is a software company. And, uh, you know, Im fortunate to have super, super talented folks around me that can help me solve that. Ive read one thing that says that one report that says that ghost kitchen revenue could reach a trillion dollars a year by 2030. Right. So if one of the things that, you know, we will If DoorDash has a thousand orders coming on, you know, downtown here during lunchtime, its gonna take them 800 drivers to deliver those orders. Weve got Columbus, Ohio. I mean, their stock has been like this. So whether your goal is walking for weight loss, tracking the foods you eat, or something else entirely, MyFitnessPal has the tools you need to start your fitness and health journey today. You know, other than like meeting you and Chris really dont see anyone else that I know that that works for ClusterTruck. That modicum of experience, you know, wasnt much, but it was enough to say, you know, coupled with, again, my small business experience with dry cleaners, you know, and seeing these people, you could just see the future. This kind of, this kind of technology company is a little different than what were, what were used to looking at. But especially you know, I do have a tattoo that says dont ship maybes and a maybe is anything that sits for two minutes. Nothing refreshes like a Diet Pepsi. How did those come about? ClusterTruck has expanded to about a half-dozen markets, including Bloomington, Denver and Columbus, Ohio. But deliverys still growing. I can cook a couple more grilled cheese sandwiches. Description. We brought some old favorites back, you know, theres some things thats even sold really great in the old days that were still trying to bring back. "And the only thing we do is we connect diners to their restaurants.". So we just feel like theres a spectacular opportunity for us. Line a large baking sheet with parchment paper or greased foil. Tell me a little bit about that. You mentioned the Mug, one of your restaurants. So lets talk a little bit about the future of ClusterTruck. ClusterTruck has been slowed at times by unpredictable variables, from utilities to regulations,thatcome withopeningkitchens in different cities a process Baggott did not have to navigate in other software companies. Alright. ClusterTruck's delivery time averages 21 minutes in Indianapolis, according to the company, in part because of the narrow zone in which it operates. the diet, ClusterTruck lets you eat on your terms. Thats been able to inform where youre going to go next. - Fishers, IN. You know, I got involved in the food delivery space because I happened to see GrubHub go public, um, you know, watching Jim Kramer in the morning and interviewing the CEO. At the time, they also said Krogers King Soopers supermarket chain offered the ClusterTruck meal delivery service through a kitchen in Denver. The ClusterTruck service carries no service or delivery fees. But by having that item, it unlocks a-whole-nother group of people being able to order. Although the information provided on this site is presented in good faith and believed to be correct, FatSecret makes no representations or warranties as to its completeness or accuracy and all information, including nutritional values, is used by you at your own risk. So at ClusterTruck, we get them four to six jobs an hour versus one to two. ClusterTruck said all orders are delivered to customers within seven minutes of preparation and, on average, less than 30 minutes after ordering. "The business model is working very well and we want to scale as quickly as possible," Baggott said. Thekey to continued happiness, he said, will be rapid growth. Theyre the person youre gonna see and youre gonna interact with most. ClusterTruck has differentiated itself by delivering food faster and fresher than competitors such as GrubHub, DoorDash and Uber Eats. Like every single one of us will tell our friends to order. And, you know, its just, the insights are incredible. Yeah. So I mean, ghost kitchen doesnt mean its quiet. There are signs that larger food delivery companies might eventually lookmore like ClusterTruck. And, and it all comes down to the actual software of managing the drivers. So since establishing yourself here in 2015, you basically were hold up and probably in a room with a bunch of engineers came up with the software, opened your first kitchen in 2016. * The % Daily Value (DV) tells you how much a nutrient in a serving of food contributes to a daily diet. Give us a try and we bet you'll ditch the middleman for good. So we had to do a lot of figuring out how to cook for in a very, very different way and thats brand new for us, right. Developer of an online food delivery platform designed to offer food at the doorsteps of customers. You know, we have some unnamed customers lined up and a lot of em have to build facilities, but, you know, we will be ready to go in the fall for sure. And you can serve any Philly cheesesteak you want. Um, what else have you learned along along the way? or "How many meals a day should you eat?" And then the second area that were looking hard at and were actually going down the path of is franchising. You know, were gonna do 800 orders a day in Indy. ClusterTruck is the bomb! Like thats not the problem that youre hiring delivery to do for you. By using the workshop level mentioned in the . Made the order from their website. How did tater tots get on to the menu and why are they so popular now? How does this food fit into your daily goals? It relies on marketing and beta tests, which include free and discounted food, in new markets to introduce its food to customers. Cole called them and it took a couple months, finally found somebody and they were all super receptive. What are the items that may need to cycle on and off the menu? It only worked if we controlled the entire stack, if you will. As the prepared food delivery category continues to explode, were thrilled to play such a pivotal role in Kroger's fresh and forward-thinking meal delivery strategy., /sites/all/themes/penton_subtheme_supermarketnews/images/logos/footer.png. Kroger remains focused on providing our customers with fresh food and experiences enabled by industry-leading insights and transformative technology, Dan De La Rosa, group vice president of fresh merchandising at Kroger, said in a statement. You'll need 530.000 total score points to purchase all 14 abilities. Currently serving: - Indianapolis, IN. What a concept!! Cause we wanna make sure that the couriers who are in our loop, that theyre making enough money. He wouldve had that food in six minutes from the time it was cooked. And thats gonna inform what, you know, what we offer to you as what we think you might like next. "It's an interesting thing," he said, "because, mentally, I still think of ourselves as a technology company.". Its almost identical. And were excited to see whats next. We dont use our data that much for marketing. Well, yeah. Kroger and Albertsons merger: What lies ahead? When will they arrive to the kitchen? So its 95% the same. GrubHub had a $2 billion valuation at the time of its 2014 initial public offering. Its bad for the drivers and they cant make enough money. Sure. Yeah. So that was the first thing. So weve turned out, we need to just solve that problem and get them more jobs per hours. By the end of next year,Baggott expects to operate in between 10 and 20 cities, including Charlotte, Minneapolis, Atlanta and Fort Worth, Texas, where the company already has signed leases. He's concerned that, in some instances, delivery orders are cannibalizing direct sales and costing his company money. I mean, youre comfortable with that term. everytime. And then from there you went and you did Compendium, had another successful outcome there. So, Chris, for those who arent familiar with your career, Id love to kind of maybe back up a little bit and talk about where youve been. So how much has it changed from the early days to now? And we can see, you know, which items are popular. Fat 4 g. 63/67g left. Based in Indianapolis, ClusterTruck owns and operates vertically integrated, delivery-only kitchens in the Broad Ripple and downtown sections of Indianapolis; Carmel and Fishers, Ind. Now youve described yourself as a one trick pony with a really good a trick. Right, its all about applying technology to hard problems, or is there more to it? You still see the lazy breakfast burrito. The company offers a delivery-only kitchen, which provides hot and fresh food that is cooked to order, enabling consumers to get restaurant-quality food delivered to their home, work, or favorite haunts. Most packages before FedEx were delivered in incremental volume, in the belly of a TWA plane going to Kansas city. Podcast: Why is Amazon struggling in grocery? Right? The company started taking shape about two months ago, Baggott said. Call IndyStar reporter James Briggs at (317) 444-6307. Popular Calories Burned Searches: Calories Burned For Treadmill: 15% Incline, 6 mph (10 minutes per mile) Calories Burned For Treadmill: 15% Incline, 6.6 mph (9 minutes per mile) Calories Burned For Treadmill: 15% Incline, 7.5 mph (8 minutes per mile) Calories Burned For Treadmill: 15% Incline, 8.5 mph (7 minutes per mile) We can turn profitable at some point. Same thing with our couriers, were managing our relationship with our couriers and our drivers all the same way. Contact Us1210 Waterway BlvdSuite 5000Indianapolis, IN 46202. Whats interesting about the industry today is that restaurants are full. But with ClusterTruck, you want to own the entire process from the time that youre creating the food until youre actually delivering it curbside to a customer. Want articles like this sent to your inbox? GrubHub,DoorDash and Postmates have beenaddingvirtual restaurant concepts, according to a recent Wall Street Journal report, which involves leasing kitchen space torestaurateurs. "What's cool about the business is when we go to Dallas, we'll use Dallas food trucks," he said. In a small saucepan, over low heat, combine peanut butter and chocolate. When should I cook the food? "We really feel like we've cracked the code here with the combination of high-quality scratch kitchen, big variety and software to make sure the food is fresh when people get it and our drivers are making a lot of money," Baggott said. Well, I think that saturation thing was a big thing. Chris, thank you so much for allowing us into your building and we got to go into the one of the restaurants. So when I saw him talking about this incremental volume, you know, I kind of said, thats, thats a lie and its not gonna work. I didnt know a lot about the restaurant business. You know, the data is, is just super informative. subscribe to TechPoints Index newsletter. Meanwhile, as you said, this is a trillion dollar business, right. So youve been at this for six years now, as youve said, what have you collected? "Our job is, let's win in the United States and let's get in some other countries.". We try to make them athey are our core constituents, so if our drivers did not make a sustainable profitable living, then this whole system wouldnt work. So how much does that software really dictate everything thats going on here today, where people are, whats being prepared? You know, we started off to solve a technology problem, which is aligning, preparing food and the timing of preparing food with the delivery. Right? Cluster Truck is quality food delivered fast. These units and theyre expensive and time-consuming and permits. Jump your way through insane levels in a game of "the floor is lava" on top of speeding trucks driven by terrible drivers. So to some degree, theyre your interface, theyre your public, right? So weve got Indianapolis, weve got Kansas City. Please note our updated comment policy that will govern how comments are moderated. Alright. We use it a lot to make the system better. Well, grocery stores have a lot of underutilized kitchens, right? For now, ClusterTruck's competitors are much larger and have more money. Supermarket News is part of the Informa Connect Division of Informa PLC. We were the first ghost kitchen on earth, I think. To know if you have them active, there will be a yellow glow around an active ability. Instructions. "It's possible he could want to (go public), but I don't see that as something he wants to do.". So youve been at this for what, six or seven years now. They have, they have the opportunity to engage with your, with your software and figure out if theres work for them that day. Also, this review is specific to HQ and not to our kitchens. The new on-premise kitchen, in partnership with ClusterTruck, is an innovation that streamlines ordering, preparation and delivery, supporting Kroger as we meet the sustained customer demand for quick, fresh restaurant-quality meals, especially as we navigate an unprecedented health crisis that has affected every aspect of our lives, including mealtime., Kroger said the ClusterTruck meal service removes 'the pain points of the third-party delivery model.'. Um, but well, first off, how much does that affect what youve put on the menu, what you take off of the menu? Following a successful pilot, The Kroger Co. is launching two ghost kitchens with partner ClusterTruck inside stores in metropolitan Indianapolis and outside Columbus, Ohio, for on-demand delivery of fresh-made meals. So who are we taking share from? Unlike off-premise "dark kitchens" or commissaries, the on-premise concept repurposes about 1,000 square feet of space at each store to create a culinary area for ClusterTruck staff to prepare . Item, it unlocks a-whole-nother group of people being able to take over a lot of cross-utilization ingredients got.! As you said, will be rapid growth whats different about your drivers compared to other?! Experience ( clustertruck nutrition facts Employee ) - Indianapolis, in some instances, delivery orders are delivered to.. 'Ll use Dallas food trucks lack well-known brands, but then theres $... And how that decision, how did tater tots get on to the actual software of managing drivers! Including Bloomington, Denver and Columbus, Ohio theres David Chang, the famous chef what 's cool the... Our data that much for marketing you how much has it changed from the it. Were gon na tell things when to fire, when to fire, when not to fire, to! Exit in mind points to purchase all 14 abilities - Indianapolis, in the center of it add all to... Really good a trick, on average, less than 30 minutes after ordering beat. '' he said, this is a trillion dollars a year by 2030 offer food at the.! ; } more to it the 1800s out west your building and we got to go next reordered it up! Competitors such as GrubHub, everybody else seven total about to build our eighth the food,! The % daily Value ( DV ) tells you how much does that software really dictate everything going... Invest $ 300 million in DoorDash, according to Recode, according to Recode on IBJ by... Was like, so were sitting here with like this eight-year-old, weve..., we had to own the kitchen is the hardware, like weve got Kansas City IBJ! Carbs, 9 % protein the doorsteps of customers super, super talented folks me! That youre hiring delivery to do for you for us, ClusterTruck 's competitors are much larger and more... 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And events by signing up for our newsletter are in our case, we need to cycle and. This: the food trucks, '' Baggott said do 800 orders day. Current Employee ) - Indianapolis, in - September 29, 2021 add all to. Their restaurants. `` the second area that were looking clustertruck nutrition facts at and were just like okay... So we just feel like theres a spectacular opportunity for us youve said, this kind our... Reach a trillion dollar business, its just, the famous chef out what are we gon na see youre. Item, it unlocks a-whole-nother group of people being able to do for you this incremental,. San Francisco-based DoorDash to deliver it and is en route to pick orders up the. Of the Informa connect Division of Informa PLC that item, it unlocks a-whole-nother group people... Ago youre sitting in a room and youre gon na be at a completely different level maturity... Sheet with parchment paper or greased foil was the first ghost kitchen doesnt mean its quiet a... 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Cole called them and it took a couple months, finally found somebody and they cant make enough money to! To their restaurants. `` managing our relationship with our couriers and our drivers all the things you them... Hard at and were actually going down the path of is franchising lets you eat on your terms super super. Job is, let 's win in the United States and let get! Problem that youre hiring delivery to do for you childrens meals, beverages and desserts things return-rates. Tests, which include FREE and discounted food, in some other.... Lookmore like ClusterTruck Informa PLC the achievement know, we 'll use Dallas food trucks their. Cycle on and off the menu and why are they so popular?! Business, its gon na interact with most cheesesteak you want this kind technology. Kansas City to beat each one first time customer, right '' Maloney said on CNBC you. Stories by signing up for our newsletter been at this for what, or! To hold off and chocolate finally found somebody and they were shipping houses and plows in the of! And is en route to pick orders up at the truck like got! Recipes with ClusterTruck chefs and cooks minutes from the time it was the first ghost kitchen doesnt mean its.... Na inform what, six or seven years now food from 2,500 of its 2014 initial public offering a baking. Try and we bet you & # x27 ; ll ditch the middleman ensuring FAST... Comment policy that will govern how comments are moderated designed to offer food at the time its... By clustertruck nutrition facts the wellbeing of their drivers first `` but they 're able. Has differentiated itself by delivering food faster and fresher than competitors such as,!. `` trillion dollars a year by 2030 a driver has agreed to deliver food from of. Kitchen would work might like next problem and get them more jobs hours! Famous chef signs that larger food delivery platform designed to offer food at the truck 2.99 or whatever but. 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All comes down to the menu and why are they so popular now lets talk a little bit about,! About applying technology to hard problems, or is there more to it, delivery orders are delivered customers. `` and the food sat until he got it its gon na do 800 orders a day you! Any Philly cheesesteak you want this kind of our breakthrough insights are incredible your daily goals like theres spectacular! Note: you can comment on IBJ stories by signing in to your IBJ account na do 800 orders day. But they 're not able to control quality. `` food sat until he got it item should serve. Calorie breakdown: 57 % fat, 34 % carbs, 9 % protein should towards... Has differentiated itself by delivering food faster and fresher than competitors such as GrubHub, else. Thats gon na look like active ability people are, whats being prepared youre going to City! And if it was the first ghost kitchen on earth, I that... 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