US-based kitchen hub operator Kitchen United has closed a $40m series B round co-led by real estate developer RXR Realty and GV, a subsidiary of internet and technology conglomerate Alphabet.
The round included another property developer, DivcoWest Real Estate Investments, venture capital firm G Squared and unnamed funds run by Fidelity Investments Canada, a branch of investment and financial services group Fidelity, as well as Kitchen United co-founders Harry Tsao and John Miller and unnamed existing investors.
Founded in 2017, Kitchen United operates converted warehouses containing roughly 10 to 20 ‘virtual kitchens’ which are flexibly leased to restaurants or brands to help supply customers with food for delivery separately to their main premises. Each centre is situated in densely populated areas to maximise customer reach for its clients.
The company uses analytics to ascertain demand for specific cuisines in key locations, helping to predict the best sites for new kitchen centres and which restaurant partners would fit best with the tastes of local consumers.
RXR will help Kitchen United enter New York City – one of its key target markets – with kitchen centres to be installed in RXR-owned properties as well as others in both the city and its surrounding areas.
Kitchen United aims to open 400 centres in the next four years beginning with sites in the cities of Scottsdale, Arizona and Austin, Texas, augmenting existing hubs in Los Angeles County and Chicago.
GV led Kitchen United’s $10m series A round in October 2018, participating together with its co-founders and multiple undisclosed investors.
Scott Rechler, RXR Realty’s chairman and chief executive, said: “We share Kitchen United’s vision for the future of the restaurant industry and believe the consumer shift toward off-premise dining is already having a huge impact on both residential and commercial real estate.”