The Commerce Tech - Teardown | All Day Kitchens
Teardown | All Day KitchensFounded in 2018, All Day Kitchens partners with restaurants to expand their access to more customers via satellite ghost kitchensThese briefs are produced by leveraging publicly available data sources and information. If you notice a mistake or see an area for improvement, please let us know through this typeform. Brief by Sarah Pariwush. SnapshotFounded in 2018, All Day Kitchens is a food technology and logistics platform that aims to assist independent restaurants in expanding their business through the use of a network of satellite kitchens. Based in San Francisco, the company has raised $120.3M in funding and is backed by renowned investors such as Lightspeed Venture Partners, Khosla Ventures, and Andreessen Horowitz. About All Day Kitchens: Website, LinkedIn Business Overview and ProductsAll Day Kitchens partners with independent restaurants and offers their menus through its network of satellite kitchens. This enables partner restaurants to reach their takeout and delivery customers with ease. This lowers expansion costs for the partner restaurants and allows them to offer their menu to a wider audience with minimal upfront investment. The company also offers expert culinary consulting services by leading chefs from well-known restaurants. In a traditional ghost kitchen model, a company typically only prepares food for delivery. However, in the model incorporated by All Day Kitchens, partner restaurants can offer both delivery and pickup channels to their customers. How It WorksThe company focuses on small and independent restaurants when it is seeking partners. This is because such restaurants face the greatest need to shift to online systems, yet lack the technology and infrastructure to do so. The All Day Kitchens platform allows these partners to reach their customers via its satellite kitchens across different markets. The company also has a culinary team that helps partner restaurants customize their menus for delivery, kitchen staff that prepares the food, as well as a network of logistics. The company’s kitchens are situated in residential and business areas, ensuring their proximity to customers. When a new restaurant partners with the company, its food goes to all satellite kitchen locations, allowing these restaurants to access large geographies and delivery zones. Customers are able to place orders from multiple restaurants operating out of each satellite kitchen location, on a single ticket for delivery and pickup. Restaurants send prepared food to All Day Kitchens locations, which then prepare the food for distribution. Business Model and PricingThe company offers a variation on the traditional warehouse model. Instead of utilizing large warehouses in far-away industrial regions that may increase delivery times, All Day Kitchens uses a micro-fulfillment model to enable small local chains and restaurants to increase their market penetration, without having to invest in infrastructures themselves. The company has not revealed its pricing strategy. TractionIn 2021 alone, the company doubled the number of satellite kitchens in its network. In May it was reported to have 10 kitchens throughout the Bay Area. By October, it had 15+ satellite kitchen locations operating across the Bay Area and Chicago, and the number of partner restaurants had grown 4x in the past 12 months. Its revenue was reported to have grown 18x during the past 18 months although exact amounts were not given. Founder(s)Ken Chong: Co-founder & CEO. Previously, Ken has worked as a program manager at Microsoft, and a product manager at Uber. He was also a product manager at Upthere. Andro Radonich: Co-founder & Head of Culinary. Prior to All Day Kitchens, Andro was a former chef who founded Andro's Rostilj in 2011. He currently serves as CEO of the company, along with being the Head of Culinary at All Day Kitchens. Matt Sawchuk: Co-founder. Previously he was Head of Operations at Instawork, and a group manager at Uber. Before his 5 year career in Uber, he was an Associate at Emerald Technology Ventures. History and EvolutionPrior to this startup, founders Ken Chong and Matt Sawchuk worked at Uber Eats where they noticed that the supply side for online food ordering did not meet the demand side, which rose rapidly especially due to the pandemic. They noticed that restaurants could not keep up with the influx of demand, and identified that the source of the failure for most was at their kitchen level. In 2018, Ken and Matt came up with the idea of All Day Kitchens and left Uber to help small independent restaurants that were struggling with expanding their business. The company was originally founded as Virtual Kitchen Co, and the idea was to collaborate with these restaurants and expand access to their food across a city via satellite kitchens. The company formally launched in November 2019. It revealed its intentions to open a dozen kitchens in the Bay Area within the next 6 months. The company’s early partner restaurants included DOSA, Big Chef Tom’s Belly Burgers, and Poki Time. By February 2020, the company was operating 6 satellite kitchen locations in the Bay Area and announced it had plans to expand both nationally and in a potential scenario, internationally. In May 2021, the company rebranded itself to All Day Kitchens and after raising its latest funding round in October, it began focusing on R&D, expanding its team, and new market expansion. From its base in San Francisco, All Day Kitchens expanded to Chicago, where it quickly set up 4 kitchen locations and partnered with 6 restaurants. The company also announced its target to expand to Texas and Southern California after this funding round. Currently, the company operates across the Bay Area and Chicago. Additional LearningsThe company rebranded after receiving feedback from partner restaurants who expressed confusion at the company’s original name “Virtual Kitchen Co”. Another reason for the change was that the company wanted to adopt a name that would be more reflective of its future ambitions. In the words of founder Ken, “It’s also a reflection of kitchen lingo capturing the energy of a bustling kitchen and a colloquial term suggesting high availability.” What differentiates All Day Kitchens from other ghost kitchen companies, is that it does not follow a simple warehousing model. It aims to go for an ultra-fast delivery capability, of under an hour or 30 minutes. This is possible by the micro-fulfillment infrastructure that the company is focusing on, which enables it to be fast, fresh, and convenient for customers. According to Ken Chong, its vertical approach has helped the company create a scalable user-friendly platform. Instead of operating large centralized warehouse kitchens, it operates a large network of smaller kitchens in neighborhoods close to customers. Moreover, the company combines its team's knowledge about food markets with its data-driven model to figure out which markets to target next. The model determines what parts of a region are the most ideal for delivery and takeout volumes, and rather than simply going for warehouses in the middle of industrial areas, the company instead chooses to go for model-identified parts of town. Market Snapshot
Suggested Next Reads
If you liked this post from The Commerce Tech Newsletter, why not share it? |
Older messages
Teardown | Facily
Tuesday, May 3, 2022
Founded in 2018, Facily has scaled rapidly to become a leading social e-commerce platform committed to helping Brazil's low-income population.
Teardown | Ankorstore
Sunday, May 1, 2022
In under 3 years Ankorstore has achieved a $2B valuation building a B2B marketplace in Europe
Udaan - India's leading B2B Marketplace
Monday, April 4, 2022
Founded in 2016, Udaan grew to become one of the fastest unicorns in India.
You Might Also Like
Tomorrow is the last chance to recognize your company's rising leaders
Thursday, April 25, 2024
Tomorrow is the last opportunity to submit an entry to this year's Future Leader Awards. Don't miss the opportunity to recognize a rising leader in your company in front of our panel of
The future is retail media
Thursday, April 25, 2024
Plus: How B2B is going B2C
Take a peek into the marketers’ tech stack, make it easy for customers to find your emails, and more
Thursday, April 25, 2024
The latest email resources from the Litmus blog and a few of our favorite things from around the web last week. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏
What makes a winning influencer campaign?
Thursday, April 25, 2024
Find out in the 2024 Influencer Marketing Report
This is something I’ve never done before...
Thursday, April 25, 2024
Do you want to know the number one topic I discuss with clients during our consulting calls? Here's the thing... It's not just one. But it's clear that most marketers and business owners
5 Simple Ways to Improve Your Pricing
Thursday, April 25, 2024
Discover how to enhance your pricing strategy with consumer psychology expert Phill Agnew. Learn how subtle changes impact customer decision-making.
This A.I. demo will blow your mind ClickBanker!
Thursday, April 25, 2024
It will absolutely shock you to see how easily you can have revenue flowing in. View in browser ClickBank We're back live in just a few hours with a mind blowing AI software demo ClickBanker...
Thinking of Stepping Down as Founder-CEO?
Thursday, April 25, 2024
You Just Might Be Asked Back To view this email as a web page, click here saastr daily newsletter Thinking of Stepping Down as Founder-CEO? You Just Might Be Asked Back By Jason Lemkin Monday, April 22
5 Critical Elements for Every Blog Post (PLUS How to Write a Call to Action)
Thursday, April 25, 2024
Hello Reader! How's your blogging week been? Today marks ANZAC Day in Australia, a solemn occasion commemorating the sacrifices of the Australian and New Zealand Army Corps during wartime,
Samourai Wallet Founders Arrested
Thursday, April 25, 2024
Plus Hong Kong to Launch Bitcoin and Ethereum ETFs