– USA, CA – Kitchen United, a virtual restaurant concept, today announced the closing of a $10 million Series A funding round led by GV. Co-founders Harry Tsao and John Miller also participated, along with several other investors. Launched in 2017, Kitchen United offers national, regional, and local restaurant chains a value-driven, low-risk opportunity to expand into new markets, grow revenue through off-premise dining, and expand their addressable delivery market. Kitchen United’s state-of-the-art commercial kitchens also provide food entrepreneurs the flexibility and business intelligence needed to enter this rapidly growing market.
As part of the investment, GV General Partner Adam Ghobarah will be joining Kitchen United’s board of directors.
Kitchen United will use the funding to power its national growth strategy – the company has plans to open new facilities in Los Angeles, Atlanta, Columbus, Phoenix, Seattle, Denver and New York City by the end of 2019. These funds will also build the company’s real estate, marketing, engineering and operations functions in connection with the existing leadership team, which hails from industry giants like Taco Bell, McDonald’s, SBE Entertainment, Wolfgang Puck and more.
Kitchen United leverages aggregate data to identify the best locations for its “Kitchen Centers,” which are facilities that can house 10-20 restaurants in converted warehouses, as well as big box and light industrial locations. Data on local demographics are overlaid with cuisine-specific demand mapping to determine the best locations for these centers, as well as the best partner fit from its growing list of participating restaurants. Once in the facility, Kitchen United provides its restaurants access to opt-in consumer and operational data to tailor their businesses, meet consumer demand, and realize operational efficiency. Examples of these functions include flagging unpopular menu choices, allowing restaurants to reduce menu size, and tailoring labor size based on demand.
“Kitchen United’s data-driven approach to flexible kitchen spaces unlocks critical value for national, regional, and local restaurant chains looking to expand into new markets,” said Adam Ghobarah, general partner at GV. “The founding team’s experience in scaling – in addition to diverse exposure to national chains, regional brands, regional franchises, and small upstart eateries – puts Kitchen United in a strong position to accelerate food innovation. Delivery networks have created new possibilities for food entrepreneurs, and we see significant investment opportunities in this ecosystem.”
According to UBS, the food delivery market is expected to grow from $35 billion today to $365 billion worldwide by 2030, an annual average of more than 20 percent. Capitalizing on the rapidly changing restaurant landscape, Kitchen United’s Kitchen Centers create operational efficiencies and reduce delivery costs for restaurants while providing more food options and decreasing wait time for customers. Rather than the traditional approach of spending millions of dollars and taking months to establish new locations, restaurant partners utilizing Kitchen United spaces can enter new markets at a fraction of the cost and time, simply by staffing the kitchen and advertising the local address through the delivery services and their web channels.
“Consumers are demanding new dining choices at ever increasing levels,” said Jim Collins, CEO of Kitchen United. “Our Kitchen Centers are designed to bring production closer to homes and businesses across the country, empowering local and national businesses alike to reach new markets. We’re thrilled to work with GV as we bring many more of these kitchen spaces to life in the years ahead.”
About Kitchen United
Kitchen United offers food entrepreneurs the flexibility and business intelligence to take the next step in starting or growing their business — regardless of size or experience. Kitchen United provides restaurant operators with a value-driven, low-risk way to easily expand into new markets, grow revenue through off-premise dining and expand existing delivery areas by removing common barriers, such as capital or technology expertise.
For more information : https://www.kitchenunited.com
- Disclaimer - News, data, and statements included in this release are intended exclusively for general information purposes. Talent4Boards does not guarantee that news is accurate or about the correct person and accepts neither liability for the consequences of the reader’s reliance, nor responsibility for the accuracy of the information. Nothing in this release should be considered for decisions about referred securities. Products and brand names may be trademarks or registered trademarks of their respective owners.