Locations in Courtyard by Marriott and Madison Hotels in Taipei to Better Use Temporarily Underutilized Kitchen Infrastructure
Just Kitchen Holdings Corp. (" JustKitchen " or the " Company ") (TSXV: JK) (OTC: JKHCF) ( Frankfurt : 68Z), an operator of ghost kitchens specializing in the development of delivery-only food brands, is pleased to announce that it has recently entered into agreements to temporarily establish and operate three satellite ghost kitchen locations (the " Spokes ") in the underutilized commercial kitchens within the Marriott's Courtyard Taipei Downtown and the Madison Taipei hotels as well as in the Trader's Society restaurant located in densely populated Shongshan District of Taipei City. In each case, the arrangement requires no up-front capital to be invested by JustKitchen, the hotels or restaurant; facilitates higher profit margins for the Company; delivers a new cash flow stream to each counterparty; and enables JustKitchen to offer its portfolio of over 20 delivery-only menus to customers in these previously unserved areas.
In all instances, operations began by June 15 th , 2021, which was within approximately two weeks of entering each agreement, as JustKitchen's brands, technology and operating procedures are portable, scalable and rapidly deployable. JustKitchen is using its proprietary mobile application as well as those of third-party delivery companies to generate orders. The term of the agreements is month-to-month and the Company has agreed to pay each of the hotels and restaurant a fixed fee based on a percentage of net sales that includes the cost of rent and the use of their existing kitchen staff to prepare on-demand food orders.
"Thinking creatively to identify these opportunities and enter into these low-risk yet mutually beneficial arrangements demonstrates how JustKitchen is agile and can work with established companies to maximize the use of their assets without compromising their core businesses," said Jason Chen , Co-Founder and Chief Executive Officer of JustKitchen. "For establishments in the food and beverage industry that have been temporarily impacted by the COVID-19 pandemic, or simply have an ongoing excess of commercial kitchen capacity, we are ready to help them generate cash flow while offering our growing portfolio of proprietary and third-party food brands to new customers," added Mr. Chen.
Subject to the success of these new Spokes, the Company may explore similar agreements with various additional hotels, restaurants and other institutions with underutilized commercial kitchens in densely populated areas. JustKitchen's unique hub-and-spoke operating model enables the launch of both temporary and permanent ghost kitchens, on either a corporate or franchised basis, across Taiwan and other markets in the future.
JustKitchen is primarily an operator of ghost kitchens specializing in the development and marketing of proprietary and franchised delivery-only food brands for customers. The Company currently operates in Taiwan and Hong Kong with plans to expand operations to the United States and other Asian countries. JustKitchen uniquely utilizes a hub-and-spoke operating model, which features advanced food preparation taking place at larger hub kitchens and final meal preparation taking place at smaller spoke kitchens located in areas with higher population densities. The Company combines this operating model with online and mobile application-based food ordering fulfilled by third-party delivery companies, to minimize capital investments and operating expenses and reach more customers in underserved markets. The Company's other business, JustMarket, is an e-commerce grocery delivery platform that allows customers to purchase groceries for delivery or add select grocery items to meals ordered through JustKitchen.
For more information about the Company, please visit investors.justkitchen.com. JustKitchen's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on the Company's profile page on SEDAR at www.sedar.com .
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur including but not limited to the Company's ability to establish and generate revenues by temporarily operating out of third party kitchens; the short timeline to establish operations at a temporary ghost kitchen location, the Company's comments regarding the potential for entering into similar arrangements with other hotels and restaurants, the Company's depiction of its nimble operating model, the Company's comments regarding the temporary status of the COVID-19 pandemic in Taiwan as well as the applicability of the Company's hub-and-spoke operating model for both corporate and franchised locations. These statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this news release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks, including those risk factors identified in the Company's prospectus dated March 26, 2021 , and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Just Kitchen Holdings Corp.
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