US-based Crave Hospitality Group that provides kitchen spaces to independent restaurant brands and offers tenants marketing, delivery software and ordering, raised US$ 7.3 million in a seed funding round on 28 December 2020.
The funding round was led by StageDotO, a venture capital firm with a primary focus on early-stage companies. It provides growth capital, guidance, and infrastructure to the startups. Other participants in the round include Meridian, ID-based investment firm and real estate developer Capital Eleven and undisclosed individual investors.
The funds raised will be utilized by Crave to build pre-opening teams for the next four Crave Collective facilities opening in 2021, followed by 10 more in 2022. The selected locations are Salt Lake City and Provo, the Dallas-Fort Worth metroplex, Mesa and Chandler and Denver.
About Crave Hospitality
Founded in 2020 by tech entrepreneur Devin Wade, industry veteran Chef Scott Howard and Boise restaurateur Barry Werner, Crave Hospitality is new to the ghost kitchen and virtual restaurant space. It opened its Boise, Idaho facility in November that houses 16 restaurant concepts.
Crave and its restaurant teams process orders digitally and prepare them in designated kitchen spaces for each restaurant. Crave has built its own proprietary tech stack to manage the orders. Crave also has a pickup area for customers in case they don’t want to pay the extra cost of food delivery.
“We are a hospitality-focused company powered by a proprietary technology suite, order bundling across our multiple restaurant partners, and a dedicated fleet of employee-drivers who power the customer experience much the same way a waiter or waitress would do in a restaurant. This allows us to meet the exacting standards of our restaurant partners, build customer relationships for them, and create operating efficiencies across the board – all of which are important for profitability. The consumer reaction, evidenced by higher-order values and repeat order volume, has certainly exceeded our expectations,” said Crave Co-Founder Devin Wade.
What Investors have to say
“We are excited to scale this concept across the country. Consumer demand for restaurant delivery has been rapidly growing for the past five years with the pandemic only accelerating this trend and expanding the customer base. Crave has brought together a collection of top chefs and restaurateurs on one platform to provide an elevated experience that is well beyond that of third-party delivery companies. The result brings the restaurant dining experience into your living room like never before,” said Mike Self, General Partner of StageDotO Ventures.
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