Series B, co-led by RXR Realty and GV, will bring first Kitchen United kitchen centers to NYC market
Kitchen United last week announced it has closed on its $40 million Series B funding round. The round was co-led by RXR Realty – one of New York City’s largest real estate owners, investors, operators and developers – and GV, with participation by certain funds managed by Fidelity Investments Canada ULC, DivcoWest and G Squared. Existing investors and founders John Miller, Harry Tsao and others also participated in the round.
As part of its relationship with RXR Realty, Kitchen United will be entering the New York City market, with kitchen centers opening in RXR and other properties in the tristate area. The company continues to seek out attractive properties in its primary growth markets, which include New York City, Chicago, Los Angeles, San Francisco and Boston.
“We share Kitchen United’s vision for the future of the restaurant industry and believe the consumer shift toward off-premise dining is already having a huge impact on both residential and commercial real estate,” said Scott Rechler, Chairman & CEO of RXR Realty. “We are thrilled to be an early supporter of Kitchen United and look forward to working together to change how New Yorkers live, work, play, and stay.”
RXR Realty is a vertically integrated private real estate company, with its core growth strategy focused on New York City and the surrounding Tri-State area, a priority market for Kitchen United as it marches forward on its path to enable restaurant growth, success and expansion.
“In just over two years, we have only scratched the surface on the massive opportunity for brands to serve their guests where they want to be served, which is increasingly outside their traditional four wall space,” said Jim Collins, CEO of Kitchen United. “We’re incredibly appreciative of our investors who understand the opportunity we present as a strategic real estate partner, meeting the needs of the top restaurant brands in the country as they find new ways to serve their loyal customers.”
Launched in 2017, Kitchen United offers innovative restaurant chains a value-driven, low-risk opportunity to grow their business without the high cost of building out a standalone restaurant. According to William Blair, U.S. off-premise restaurant sales in 2018 were $279B, with an expectation for that number to grow to $402B in 2022. Kitchen United’s commerical kitchen centers each house 10 to 15 restaurant brands, allowing the restaurant to focus on the food, while Kitchen United takes care of the rest. With locations open in Pasadena and Chicago, Kitchen United will soon open in Scottsdale and Austin, with additional sites under construction in Chicago, San Francisco, Los Angeles and other major markets.