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CloudKitchens is a
ghost kitchen A virtual restaurant (also known as a ghost kitchen or dark kitchen) is a food service business that serves customers exclusively by delivery and pick up based on phone and online ordering. It is a separate food vendor entity that operates out o ...
and
virtual restaurant A virtual restaurant (also known as a ghost kitchen or dark kitchen) is a food service business that serves customers exclusively by delivery and pick up based on phone and online food ordering, online ordering. It is a separate food vendor entit ...
company started by
Diego Berdakin Diego Berdakin is a Los Angeles-based Internet entrepreneur and University of Southern California professor. He founded the social commerce company BeachMint along with Myspace co-founder Josh Berman, which later was acquired by Condé Nast to f ...
. In a cloud kitchen, food is only prepared in a commercial kitchen for delivery or takeaway; there are no dine-in guests. With the help of cloud kitchens, restaurateurs can easily grow an already-existing business or launch a digital brand.


Funding

In January 2019,
Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the List of Asian countries by area, fifth-largest country in Asia ...
's sovereign wealth fund,
Public Investment Fund The Public Investment Fund (PIF; ar, links=no, صندوق الإستثمارات العامة) is the sovereign wealth fund of Saudi Arabia. It is among the largest sovereign wealth funds in the world with total estimated assets of $620 billio ...
, invested $400 million in the startup's
Series A round A series A round (also known as series A financing or series A investment) is the name typically given to a company's first significant round of venture capital financing. The name refers to the class of preferred stock sold to investors in exc ...
. By that time,
Travis Kalanick Travis Cordell Kalanick (; born August 6, 1976) is an American businessman best known as the co-founder and former chief executive officer (CEO) of Uber. Previously he worked for Scour, a peer-to-peer file sharing application company, and was t ...
had invested $300 million in the company; he sold $1.4 billion of his Uber stock by May 2019. Sources noted Kalanick's ties to Saudi Arabia, which includes Kalanick serving on an advisory board for
Neom Neom (styled NEOM; ''Neom,'' ) is a city being built in Tabuk Province in northwestern Saudi Arabia. It is planned to incorporate smart city technologies and function as a tourist destination. The site is north of the Red Sea, east of Egypt acro ...
, Saudi Arabia's plan to build a futuristic "mega city" in the desert. In 2018,
Travis Kalanick Travis Cordell Kalanick (; born August 6, 1976) is an American businessman best known as the co-founder and former chief executive officer (CEO) of Uber. Previously he worked for Scour, a peer-to-peer file sharing application company, and was t ...
purchased a controlling stake in City Storage Systems LLC, founded by
Diego Berdakin Diego Berdakin is a Los Angeles-based Internet entrepreneur and University of Southern California professor. He founded the social commerce company BeachMint along with Myspace co-founder Josh Berman, which later was acquired by Condé Nast to f ...
, for $150 million, which operates as the parent company of CloudKitchens and is operated by Berdakin and Barak Diskin. This parent company arrangement allows CloudKitchens to operate as a shell company and to keep a level of secrecy or stealth to the startup. In November 2021, CloudKitchens raised another $850million in a funding round valuing the company at $15billion. Investors included
Microsoft Microsoft Corporation is an American multinational corporation, multinational technology company, technology corporation producing Software, computer software, consumer electronics, personal computers, and related services headquartered at th ...
, which previously backed Kalanick's Uber. In 2022, the company was sued by three of its operators for allegedly violating labor laws and deceptive business practices. According to a report published by
Business Insider ''Insider'', previously named ''Business Insider'' (''BI''), is an American financial and business news website founded in 2007. Since 2015, a majority stake in ''Business Insider''s parent company Insider Inc. has been owned by the German pub ...
, over 70% of CloudKitchens' operators left the company within a year. It was also alleged by partners that many facilities lacked property security and food safety measures.


Ghost kitchen operations

A ghost kitchen (or "dark kitchen") allows the kitchen space to operate as a commissary to others, which lets costs be shared and can exist in lower-overhead spaces than a standard restaurant. Ghost kitchen partners include: *
Sweetgreen Sweetgreen (legally Sweetgreen, Inc., stylized as sweetgreen, previously swɘetgreen) is an American fast casual restaurant chain that serves salads. It was founded in November 2006 by Nicolas Jammet, Nathaniel Ru, and Jonathan Neman. In August ...
*
The Halal Guys The Halal Guys is a halal fast casual restaurant franchise that began as halal carts on the southeast and southwest corners of 53rd Street and Sixth Avenue in Manhattan, New York City. New locations, both food cart and storefront, are being adde ...
* Fat Sal's Deli * Chick-fil-A *
Wendy's Wendy's is an American international fast food restaurant chain founded by Dave Thomas (1932–2002) on November 15, 1969, in Columbus, Ohio. Its headquarters moved to Dublin, Ohio, on January 29, 2006. As of December 31, 2018, Wendy's was ...
*
Burger King Burger King (BK) is an American-based multinational chain of hamburger fast food restaurants. Headquartered in Miami-Dade County, Florida, the company was founded in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant c ...


Otter

CloudKitchens created Otter, a food order platform, which consolidates orders from various platforms (such as Uber Eats, Postmates, Caviar, DoorDash) for kitchens.


Internet Food Court

In April 2020, CloudKitchens launched—and closed—an experiment called the "Internet Food Court" in
Koreatown A Koreatown ( Korean: 코리아타운), also known as a Little Korea or Little Seoul, is a Korean-dominated ethnic enclave within a city or metropolitan area outside the Korean Peninsula. History Koreatowns as an East Asian ethnic enclave hav ...
,
Los Angeles Los Angeles ( ; es, Los Ángeles, link=no , ), often referred to by its initials L.A., is the largest city in the state of California and the second most populous city in the United States after New York City, as well as one of the wor ...
, with retro 8-bit. The Internet Food Court allowed families to order delivery from 100 virtual restaurants.


Future Foods

CloudKitchens' virtual restaurant division is named Future Foods.
Virtual restaurant A virtual restaurant (also known as a ghost kitchen or dark kitchen) is a food service business that serves customers exclusively by delivery and pick up based on phone and online food ordering, online ordering. It is a separate food vendor entit ...
brands (or "pseudo-restaurants") are the opposite of a ghost kitchen: they allow existing restaurants to deliver food with the Future Foods brands. Future Foods handles marketing including food photography. These Future Foods brand orders are organized for a restaurateur using the Otter order system.


CloudKitchens brands

* Excuse My French Toast * Egg the F* Out * B*tch Don't Grill My Cheese * Charcootz * LA Breakfast Club * Send Noods * Brooklyn Calzones * Cupid's Wings * Cheeky's Cheesesteaks * Groovy Island Pizza * Pimp My Pasta * OMG BBBQLOL * F*cking Good Pizza * Hummus Hero * Beverly Hills Platters * Bob's Kabobs * Fabulous Falafel * Pastrami & Pickles * Big Hotdog Energy * Burger Mansion * Killer Wings * Devil's Soul Food * Phuket I'm Vegan


Acquisitions and lobbying

It acquired FoodStars BH Ltd, which opened in 2015.
Bradley Tusk Bradley Tusk (born October 3, 1973) is an American businessman, venture capitalist, political strategist, and writer. He is the founder and CEO of Tusk Ventures, a venture capital fund focused on investing in early-stage startups in regulated ind ...
provides political
lobbying In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies. Lobbying, whic ...
for the company.


References


External links

* {{official website, https://www.cloudkitchens.com/ Online food ordering