- Karma Kitchen, a London-based Ghost kitchen startups just raised £252M
- It was initially looking for “only” £3M
- The startup intends to use this huge (and quite unexpected) financing to grow faster in the UK and in other European cities
Why it matters – DigitalFoodLab’s opinion:
Karma Kitchen operates as a Ghost Kitchen, which means it owns and manages kitchens that are then rented to food brands as flexible spaces dedicated toward their delivery operations. It basically works as a WeWork for restaurants.
The timing was quite perfect for this deal. As many restaurants have closed their doors during the crisis, their owners now see the interest of a second location in a ghost kitchen facility to reduce the costs (mostly staff and rent for a Main Street location).
This trend toward ghost Kitchens and Virtual restaurants (the food brands that only operates through ghost kitchens and Delivery services) is not only starting. Indeed, ghost kitchens could be a $1T (yes T like a trillion, a thousand billons) in less than 10 years