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All Day Kitchens wants to expand every independent restaurant’s delivery network – FiratNews

All Day Kitchens wants to expand every independent restaurant’s delivery network – TechCrunch

The pandemic ushered within the reputation of shared workspaces, often called cloud kitchens or ghost kitchens, for eating places to prepare dinner meals solely for supply.

However for small, unbiased eating places that couldn’t afford the upfront prices for enlargement, Uber Eats alums Ken Chong and Matt Sawchuk got here up with one other method. They based All Day Kitchens in 2018 to companion with eating places to share their meals throughout a metropolis by means of use of a community of satellite tv for pc kitchens, with out having to place up any upfront prices.

With their mannequin, distributed kitchens are located in residential and enterprise areas, nearer to prospects. When a brand new restaurant is onboarded to the platform, their meals goes to all areas, which streamlines how eating places develop in giant geographies and supply zones, CEO Chong instructed FiratNews. The mannequin additionally allows the flexibility for patrons to order from a number of eating places in a single order and it’ll all be delivered collectively.

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All Day Kitchens founders Ken Chong and Matt Sawchuk

“Shopper desire was spoken for pre-COVID and the complete restaurant world was not going to be the suitable mannequin for the way digital demand was to be crammed,” he added. “We got down to construct a flip key resolution for eating places for which warehouse ghost kitchens weren’t working for them. As an alternative, we constructed a platform for micro-fulfillment so they may develop their attain.”

On Friday, the meals tech and logistics firm introduced a $65 million Collection C spherical of financing led by Lightspeed Enterprise Companions with participation from GIC to fund enlargement into new markets, R&D and hiring. Present traders Andreessen Horowitz, Founders Fund, Khosla Ventures and Base10 additionally participated within the spherical together with new traders, together with Tishman Speyer, Lime CEO Wayne Ting and Ahead co-founders Adrian Aoun and Ilya Abyzov.

The brand new funding brings All Day Kitchens’ complete funding so far to $102.5 million. It’s the newest firm within the ghost kitchen area to obtain funding in a sizzling trade that features Muy, JustKitchen and even robotic kitchens like YPC.

The corporate doubled the variety of satellite tv for pc kitchens in its community this 12 months and now operates greater than 15 areas all through the Bay Space and Chicago, with new markets anticipated to enter Texas and Southern California subsequent 12 months, Chong mentioned. It’s also hiring at its headquarters in San Francisco and because it opens the brand new markets.

Although the worldwide pandemic was a tricky setting for its restaurant companions, All Day Kitchens noticed the variety of companions becoming a member of the platform develop by 4 occasions over the previous 12 months. It’s working with manufacturers like Honey Butter Fried Rooster, Mott St and HaiSous. It’s income has additionally elevated 18 occasions over the previous 18 months.

“The half that we actually discovered shocking and putting is the misperception that eating places are late adopters,” Chong mentioned. “Just like Uber, it’s actually that nobody was constructing one thing like this for them. A number of the apps on the market are for shoppers, and that’s the reason eating places are our focus. The restaurant companions we work with are all the time seeking to enhance.”

As a part of the funding, Alex Taussig, companion at Lightspeed, is becoming a member of the corporate’s board as a director and GIC’s Jeremy Kranz is becoming a member of as a board observer.

Taussig met Chong over a 12 months in the past and mentioned Lightspeed has made plenty of investments within the meals and commerce area over the previous decade. One of many areas Taussig was wanting into was methods to unravel the demand for supply. He remembers completely different startups and fashions and was “underwhelmed” by the warehouse fashions.

In speaking to Chong about All Day Kitchens, Taussig noticed one thing completely different: a mannequin the place the main focus was getting the meals nearer to the shopper. It not solely correlated with the standard of meals, but in addition supply occasions in order that gadgets weren’t sitting in somebody’s automobile for an hour. Because of this, there could be larger utilization of the platform, he mentioned.

“I used to be blown away by that perception and spent a 12 months watching Ken construct the corporate,” Taussig added. “The Chicago launch was additionally a giant deal as a result of most corporations begin within the Bay Space. This market measurement is measured in billions and is sort of limitless and quicker rising on the unbiased aspect. It’ll be exhausting for an additional firm to come back in and do what All Day Kitchens is already doing.”

 

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