Food Delivery Startup Munchery Raises $28M To Expand In Seattle.
A San Francisco-based firm that delivers cooked meals made by professional chef, named Munchery, recently raised over 28 million and will soon expand its services into Seattle, where an advance team is creating a kitchen for the company’s first business outside of the Bay Area.
This round was led by SherpaVentures, which will have its founding member, Shervin Pishevar take a seat on Munchery’s board of directors. Pishevar is known among other things for being an early and passionate investor for Uber Technologies, the quickly growing smartphone ride-sharing services, and he’s compared Munchery to Uber as a Stellar example of “an on-demand economy “company.
Munchery has become part of an increasing trend that has big named chefs out of restaurants for a work that is stable and can be better paying. Other new food companies have included such places as, Debbie Does Dinner, Sprig, Luke’s Local, Spoonrocket, Sqaure Meals and much more.
Out of Munchery’s 160 employees, there are over 60 full time, with the biggest bulk being chefs and kitchen worker, 15 being non-kitchen staff and 100 of them being part-time drivers.
“We really make the chefs the stars,” said co-founder Tri Tran. “The food has to be amazing. The entire team is there to support the chefs.”
Tran and Conrad Chu started the firm in 2010, with both of them having software engineering and user experience histories, Munchery has sold 580,000 meals across much of the Bay Area, not including catering, and averages over 22,000 meals per week, with a growth of 20 percent week over week.
The company utilizes organic and local ingredients whenever possible and donates a steady amount of their meals to the SF-Marin Food Bank. Entrees cost between $8 to $12 a piece for adults, with sides priced between $3 to $8 each, and kids meals sell for $2 to $8.
The services is expected to start delivering meals within Seattle by early summer, Similar to the Bay Area, it will be using both in-house “resident” chefs and non-employee chefs. The culinary manager in Seattle will be Emily Moore, a chef who has been recognized nationally by her peers and was formerly executive chef of the Painted Table at Seattle’s Alexis Hotel. On Thursday, Munchery also mentioned that it hired Scott Newman, Former executive chef of Rubicon restaurant, to be one of its resident chefs within San Francisco.