Virtual brand platform C3 announced Thursday that it acquired the IP and other assets of Kitchen United, a once-rising company in the off-premises category.
As part of the move, Kitchen United will pivot to a software business after seeing years of growth in the ghost kitchen and delivery space. Terms of the deal weren’t disclosed.
The news comes four months after Kitchen United closed all of its Kroger ghost kitchens. A few weeks afterward, shared kitchen provider Nimbus announced that it acquired spaces in Manhattan’s Midtown and SoHo neighborhoods, both of which were previously operated by Kitchen United.
In July 2022, The company announced a $100 million funding round, with Kroger as one of the leading investors. Other contributors included Burger King parent Restaurant Brands International, Circle K, and Pro Football Hall-of-Famer Peyton Manning. Kitchen United said at the time that it saw triple-digit top-line growth for three consecutive years and that it planned to “significantly increase” its technological and physical footprint. The idea was to focus on major markets like Los Angeles, New York City, Chicago, and Texas.
C3’s latest move follows its 2023 acquisition of Nextbite, a company that incubates virtual brands and provides them to restaurants looking to fill kitchen capacity.
“Since starting C3 in 2019, I have been watching other industry leaders such as Nextbite and Kitchen United in their journeys to change the virtual culinary industry,” CEO Sam Nazarian said in a statement. “These companies have had incredible ideas and unbelievable instincts but just not enough capital to ultimately disrupt the market.”
C3 will unify Kitchen United and Nextbite’s resources under newly created platform Everybody Eats, which is described as a “CPG and culinary brands company connecting new audiences through food brands in exclusive arrangements.” The company hopes to be a big player in the virtual restaurant industry by leveraging physical footprints, AI software technology, and introducing new chef-driven concepts, celebrity-powered brands, and high-quality restaurants.
Everybody Eats plans to play in several segments, including CPG, supermarkets, convenience, casual dining, education, hospitality, and limited-service hotels. It will be headed by Geoff Madding, the former chief growth officer for Nextbite.
“We have created an all-encompassing platform built upon the ideas of the three best thought-leaders in the industry,” Nazarian said. “This is an unbelievable turning point for the industry as I believe the connectivity of a new audience through food is one of the most exciting parts of what we do at Everybody Eats, and we look forward to continuing to change the future of food-tech under the dynamic leadership of Geoff Madding, our new COO.”
With the COVID pandemic receding and consumer behavior reverting to its pre-pandemic patterns, ghost kitchen operators have faced increasing scrutiny. A notable example is Wendy’s, which inked a significant 700-unit partnership with REEF Kitchens in 2021, only to shift its focus away from the delivery-centric model in subsequent periods. Similarly, CloudKitchens, spearheaded by Travis Kalanick, the former CEO and cofounder of Uber, disclosed staff reductions in September. Within the casual-dining sector, Red Robin and Chili’s opted to phase out their virtual brands. However, not everyone has strayed away; Denny’s is currently using digital concepts The Burger Den, The Meltdown, and Banda Burrito.
