Burger King parent invests $14M in homemade delivery company

by uchimeshi
  • Home food delivery service WoodSpoon has raised $14 million in funding managed by Burger King’s parent company, Restaurant Brands International. According to a press release, the fund will be used to accelerate growth through research and development, marketing, human capital and new markets.
  • This is the second round of funding in less than a year for WoodSpoon, which offers home chefs a platform to deliver their meals to local consumers through an app-based marketplace. The company, which received $2 million in December shortly after its launch, had around 100 chiefs on the platform at the time and now has around 16,000 active customers.
  • In the publication, RBI COO Josh Kobza plans to learn from Woodspoon’s service model and emerging trends it encapsulates to advance its “journey to become a leader in the digital restaurant space.”

Restaurant companies are on a late tech spending spree, including the recent acquisition of Yum Brands. Quantum and tiktuk Technologies, investments of Inspire Brands ItsaShmat and McDonald’s acquisition of Dynamic Yield, and plexiglass.

RBI isn’t on this list, but this particular investment is a bit different as it doesn’t directly complement the company’s operations or digital presence in a way that, for example, Chipotle’s partnership with autonomous distribution company Nuro could cut costs. delivery sales increase.

WoodSpoon’s However, with 50% monthly growth in sales, customers, chefs hiring and revenue by release, growth could signal an opportunity. RBI can leverage the company to learn from its marketplace and distribution infrastructure. CEO during RBI’s Q2 call last month josto delete He added that the company has “enormous opportunities with new formats”, particularly with delivery and pickup only, noting that it sees digital stickiness control and traffic in delivery sales. RBI can also potentially provide leverage WoodSpoon’s deepens the list of chefs for culinary inspiration for their menus.

Home-cooked meals face different regulations depending on jurisdiction, but the market seems to be growing as chefs advocate expanding home-cooking laws. For example, San Francisco-based Shef, another service that offers home-cooked meals, recently received $20 million in funding.

This type of advocacy is likely to have a larger audience, following the closure of thousands of restaurants that have put many chefs out of work. As the COVID-19 delta variant again threatens the catering business, the market may be more attractive to consumers looking for diverse, delivered meals.

This funding round could facilitate WoodSpoon’s expansion to other major cities. The company also wants to expand its team in Tel Aviv, which will form the basis of its growing international presence.

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