Kitchen United, which operates a growing network of shared kitchen
spaces for restaurants around the U.S., announced today it has closed a
Series B round for $40 million. The round was co-led by RXR Realty and
GV (formerly Google Ventures), with participation by funds managed by
Fidelity Investments Canada ULC, DivcoWest and G Squared. Existing
investors and founders John Miller, Harry Tsao, and others participated,
too. This brings KU’s total funding raised to $50 million.
The popularity of ghost kitchens
— also known as “virtual kitchens,” “kitchen as a service,” and a slew
of other monikers — has skyrocketed in recent months as restaurants
large and small try to meet the demands of this delivery-crazed era we
live in.
Kitchen United, which launched in 2017
in Pasadena, CA, has been at the forefront of this movement with its
growing network of facilities that can house between 10 and 20 ghost
kitchens per location and are home to brands like The Halal Guys, Wetzel’s Pretzels, Canter’s Deli, and others.
In October 2028, Kitchen United got a $10 million investment from Google’s parent company and CaliBurger CEO John Miller.
With the new investment, KU will be moving into more locations — the
NYC market in particular. According to a press release sent to The
Spoon, part of the deal with RXR Realty involves opening ghost kitchen
facilities on RXR properties in the city as well as the tristate area.
Such a partnership is wise on KU’s part as the company looks to expand
into cities known for astronomical rents when it comes to large spaces.
KU will expand to several RXR properties, starting with Brooklyn,
Manhattan, and Stamford, CT.
The company currently operates a facility in Chicago as well as its
original one in Pasadena. As the press release noted, locations for
Scottsdale, AZ and Austin, TX will open soon. And the company is also
looking to expand to other major metropolises like San Francisco,
Boston, and Los Angeles — also cities where a deal with a real estate
company might not be a bad idea.
In New York, at least, Kitchen United will compete with the newly opened Zuul Kitchens, who just opened their first location in Manhattan’s SoHo neighborhood and is focusing on that market for further expansion.
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