Locations in Courtyard by Marriott and Madison Hotels in Taipei to Better Use Temporarily Underutilized Kitchen Infrastructure
Just Kitchen Holdings Corp., 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 15th, 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.
