Sunday, April 7th, 2019 April7th2019

Sell for More Trivia: Is there co-working space for the restaurant industry?

Published on April 7th, 2019

Sell for More Trivia is a weekly blog series that playfully presents a trivia question about commercial real estate.

 

Yes there is.  Kitchen United describes itself as a “virtual restaurant center”.  It’s opened two locations with plans to open 20 more in major metro areas.  So what does a restaurant co-working space look like?

Kitchen United provides commercial kitchen space and support services to restaurant companies, chefs and caterers.  Users pay a monthly membership fee for dedicated workspace with all the features of a commercial kitchen, including health department permits, cleaning, marketing and technology services.

The virtual part means that there is no dine in component.  All the business originates through online orders, apps or a third-party source such as Uber Eats or Grub Hub.  Food is prepared for customer pickup or delivery only.  Kitchen United also has its own online ordering feature that enables customers to browse menus and place orders from its in-house restaurant operators.

The company opened its debut site in Pasadena, Calif. followed by a Chicago location.  Kitchen United is now preparing for a busy year ahead thanks to a fresh capital infusion and some big name supporters.  The company recently closed on $10 million in funding that was led by GV (formerly Google Ventures).

Kitchen United is positioning itself for what it expects to be explosive growth in demand for fresh-food delivery in the U.S. Its initial target markets include urban areas where food delivery is already high like areas with large populations of millennial’s.

Kitchen United centers are landing in a variety of venues ranging from retail centers and mixed-use redevelopments to former warehouse space. For some retail landlords, Kitchen United provides a way to backfill empty junior boxes with an alternative use that also can drive customer traffic to retail centers. The preferred sizes are between 8,500 and 10,000 square feet. The sites may accommodate anywhere from 10 to 20 restaurant users.

“We are very concerned about where the consumers are who are going to be placing orders, and how we best service them with a short delivery time — and then, real estate second. Some of the selling points of retail locations is that they are usually close to the consumer and have ample parking. There are a number of empty big-box locations that landlords are looking to fill, and I think we are a part of that repurposing trend of reimagining what that real estate can be” said Kitchen United’s CEO.

As a person who dislikes preparing meals…I think there is a real business opportunity here.  Look for more carry-out and delivery only concepts in your neighborhood soon.  Who knows…one may even be a co-working center.

 


Estimate how much your property is worth, for free, before you list it for sale.  Plus get the step-by-step blueprint to sell your property for the highest price the market will pay (click here)


How to get an unfair advantage.  Click here to join Sell for More Club today.


Pop the champagne.  Our clients celebrate when their sale closes…and we supply the champagne.  Click here to schedule a no pressure call to get started.


About Beau Beach, CCIM

Beau is a tenacious Commercial Real Estate Broker, author and adoring father of four. His clients appreciate his no-nonsense demeanor and his legendary work ethic.

Beau leads Beachwood which is a commercial real estate broker for sellers in the Nashville, Milwaukee, South Florida and Chicago markets.

He’s the author of the books The 3 Reasons: Why Most Commercial Properties Don’t Sell and True Wealth: What Every Seller Should Know About 1031 Exchanges.

Beau can be reached at 414.324.4938, 615.603.9770, click to schedule a call or Beau@ProwessIRES.com