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Kroger, Couche-Tard invest in Kitchen United

Ghost kitchen operator receives new funding to drive U.S. expansion

Russell Redman

July 25, 2022

3 Min Read
Kroger-Kitchen United MIX-Houston store.jpg
The Kroger Co. now has Kitchen United MIX 'restaurant hubs' in three stores, including Kroger supermarkets in Dallas and Houston and a Ralph's grocery store in Westwood, Calif.The Kroger Co.

Supermarket giant The Kroger Co. and convenience store giant Alimentation Couche-Tard took part in a new funding round for “restaurant hub” operator Kitchen United.

Pasadena, Calif.-based Kitchen United on Monday announced $100 million in Series C funding from investors Kroger, Circle K parent Couche-Tard, Restaurant Brands International, B. Riley Venture Capital, shopping center behemoth Simon, Phillips Edison & Co. and The HAVI Group.

On completion of the round, Kitchen United said its total fundraising to date rose to approximately $175 million. The company noted that includes “strong participation” from all existing institutional and strategic investors (GV, Fidelity Investments Canada ULC-managed funds, RXR, DivcoWest, Cali Group, GoldenArc Capital, General Global Capital and Rich Product Corp.) plus “significant investments” from Kitchen United founders Harry Tsao and John Miller, Kitchen United CEO Michael Montagano and NFL Hall of Fame quarterback Peyton Manning.

Under its Kitchen United MIX banner, Kitchen United operates ghost kitchens that provide “virtual food courts” at various venues, including stores, malls and other public spaces. Customers place orders online, through a mobile device or via an in-person ordering kiosk using Kitchen United’s MIX platform and then pick up their meals on-site or have them delivered. Restaurant staff prepare the orders, with delivery service fees set by third-party providers.

Related:Kroger store in Dallas adds ‘virtual food court’

“We see many commercial opportunities in partnering with Kitchen United as it prepares for considerable scale,” Kevin Lewis, chief marketing officer at Toronto-based Alimentation Couche-Tard, which operates more than 14,000 convenience and/or fuel stores in 24 countries and territories. “We believe this business stands apart from other industry players with its centralized locations, multi-format offerings, experienced management team and mature technology stack — all of which align with Circle K’s mission to make our customers’ lives a little easier every day as we work together to shape the future of convenience.”

Last week, Kitchen United said it opened its third MIX location inside a Kroger Co. supermarket, this time at the grocer’s Kroger-banner store at 5665 East Mockingbird La. in Dallas. Since the national partnership with Kitchen United was unveiled last August, Kroger opened restaurant kitchens inside a Ralph’s supermarket in Westwood, Calif., in January and inside a Kroger grocery store in Houston in February.

“When our customers think of food, they think of Kroger,” Dan De La Rosa, group vice president of fresh merchandising for Cincinnati-based Kroger, commented on the opening of the Kitchen United MIX in the Dallas Kroger store. “The Kitchen United collaboration provides the fresh, on-demand meals our customers crave. It is one more innovative example of how Kroger is fulfilling its commitment to anything, anywhere, anytime.”

Related:Kroger opens second restaurant kitchen with Kitchen United

Besides Kroger, in the past two years, Kitchen United also has unveiled collaborations at Simon mall properties nationwide. The company said it now has about 200 operational kitchens across 20 regions — with plans to “significantly increase its technological and physical footprint in the near term — and has seen triple-digit, top-line growth for three straight years.

Kitchen United added that its expansion will continue to focus on key U.S. markets such as Los Angeles, New York City, Chicago and Texas as well as enhance its multi-concept ordering platform Kitchen United OS for use by food operators including Burger King, Popeyes, Chick-Fil-A., Portillo’s, Panera Bread, Dog Haus, Wingstop and Brinker International.

“This Series C financing further solidifies Kitchen United’s leadership position in the industry,” Montagano stated. “Kitchen United uniquely sits at the intersection of technology, food and real estate. Our solution serves as the technological and physical infrastructure revolutionizing centrally located distribution hubs through streamlining off-premises ordering and consumption. To that end, we are thrilled to partner with leading investors across grocery, convenience, restaurants, malls, packaging, logistics, distribution, automation, and urban and suburban real estate development.”

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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