JustKitchen

Overview

The global food delivery service market size is expected to register a CAGR of 11.4 percent to reach US$311.43 billion in 2028. Ghost kitchens, in particular, are an emerging industry estimated to be worth $1 trillion by 2030, according to data from market analysis firm Euromonitor International.

Food tech solutions like online food delivery and ghost kitchens (also known as virtual kitchens, dark kitchens, cloud kitchens, etc.) have been quickly evolving to meet the demands of an increasingly digitized and service-based world in recent years. Made to reduce operating and overhead expenses through optimized infrastructure and leveraging delivery-only models, ghost kitchen companies are shaking up the food scene and this could last well into the future.

JustKitchen (TSXV: JK; OTC: JKHCF; FSE:68Z) is a network of virtual kitchens that benefit from lower overhead and operating costs to achieve better economics than operating a dine-in restaurant. The company deploys a hub-and-spoke operating model in certain markets, which works to maximize efficiency and margins.

This hub-and-spoke operating model takes semi-prepared food from its full-scale commercial kitchens or “hubs," which then distribute them to “spokes" for completion before delivery to end consumers.

JustKitchen also offers delivery-only meals under its own proprietary menus alongside established restaurant brands, including world-class Michelin-star establishments. Through its proprietary software, JustKitchen Operating System (JKOS), the integration with third-party devices and applications is made easier to enable food ordering capabilities for users. Approximately 20 proprietary in-house brands, over a dozen licensed third-party brands and two celebrity-backed brands now compose the company’s portfolio.

The company is headquartered and operates primarily in Taiwan, a renowned food tourism destination and mature food market. Being Taiwan-based strategically positions JustKitchen to leverage the country's low overhead and operating costs and high market exposure, which includes a US$16 billion dining market and high-density consumer base.

The company has plans to continue expanding to other geographic markets, such as other Asian countries, in the near term. It currently has more than 25 locations across Taiwan, Hong Kong, the Philippines, and Malaysia. JustKitchen has also established swap agreements that allow the company to sell its food brands in Japan and India.

Recently, JustKitchen announced its expansion to Thailand via GrabKitchen, which is providing the physical kitchen on a kitchen-as-a-service model.

Additionally, the company has several new revenue streams in the works, such as a proprietary meal-ordering app and a customer loyalty/rewards program, among others.

JustKitchen leverages data to create value, improve supply chain management and optimize menu creation. Through well-engineered software, the company works to proactively predict demand for better cost management and customer satisfaction.

The company's other exciting project is the upcoming franchising of a ghost kitchen system. This would offer franchisees the opportunity to own their very own business on a turnkey basis for a modest level of investment.

JustKitchen's virtual kitchen franchise model, strength in supply chain and data integration could eventually position the company as a major global franchisor of choice for ghost kitchens and delivery-only food brands.

Company Highlights

• JustKitchen operates a unique network of hub-and-spoke ghost kitchens in certain markets, also known as virtual kitchens or cloud kitchens, that allow delivery-only food items to reach more customers, more quickly, and avoid unnecessary overhead and operating costs.
• The company has a primary presence in Taiwan as well as operations or licensing arrangements in Hong Kong, Malaysia, the Philippines, Japan, India, and more recently, in Thailand. The company plans to expand to other markets in the future.
• JustKitchen uniquely offers delivery-only meals under its own proprietary menus as well as for established food brands, including Michelin-level restaurants.
• The company has acquired the virtual branding rights to many well-known Asian ‘hero foods’ including but not limited to Chili House and Ben Teppanyaki.
• JustKitchen creates fresh meal for over a dozen 7-Eleven convenience store locations across Taiwan, and counting.
• The company also has a proprietary JustKitchen Operating System (JKOS) to enable food ordering in third-party apps and devices.