The food tech firm aims to allow restaurant brands to expand delivery nationwide without the need for bricks and mortar sites
A food technology firm helping restaurants roll out nationwide delivery without requiring physical premises has unveiled ambitious plans to surpass £100 million in sales, capitalising on soaring demand within the struggling sector, reports BritPanorama.
Growth Kitchen, founded by Mate Kun and Tom Gatz, enables brands to break into fresh food delivery markets by utilising shared kitchen space with existing restaurants and hospitality businesses.
Mr Gatz told the Press Association that their operation provides firms with access to a wealth of new customers nationwide without the substantial capital outlay required for brick-and-mortar locations. This comes at a time when the sector is facing considerable cost challenges.
He described the model as similar to the “Airbnb of professional kitchens”.
Growth Kitchen has recently partnered with national chains Tortilla, Coco di Mama, and Little Dessert Shop, joining existing partners such as The Athenian, Gourmet Burger Kitchen, Coqfighter, and Beer & Burger.
The Cheshire-headquartered company has expanded its network of host kitchen partners to 150, collectively processing over one million orders annually.
Having more than doubled revenues last year, the business is targeting approximately £30 million in sales this year and aims for £100 million in annual turnover within three to five years. This expansion will involve onboarding additional restaurant brands and increasing host kitchen locations to 300. Restaurant brands supply their recipes, menus, and operational standards, while Growth Kitchen manages the delivery launch—from sourcing and training professional host kitchens to rolling out menus on platforms like Deliveroo, Uber Eats, and Just Eat.
The firm deploys its artificial intelligence-powered platform to help restaurants optimise their delivery operations.
For host kitchens, the service frees up underutilised space while also generating a new revenue stream. Restaurant brands do not pay rent; instead, host kitchen operators take a percentage of order proceeds.
Mr Gatz indicated that the concept arose from the surge in food delivery but noted that challenging conditions facing restaurants have intensified demand.
He remarked that restaurant brands see this as a long-term opportunity to scale their food delivery operations.
However, the current trading climate may be accelerating the adoption of this model, as brands search for avenues to grow, achieve profits, and enhance brand awareness across the UK.
He added, “There’s some real issues in terms of wage costs at the moment with hospitality and restaurant firms, energy, and obviously some of the food costs that are rising because of the Iran war.”
He continued, “For them, employment and people are costly due to recent changes, so this solution can assist them by reducing the need to hire large teams.”
Mr Gatz appealed to the Government to lower VAT on food and drink to enhance competitiveness and alleviate the financial burden on the hospitality industry.
He remarked, “Compared to many European peers, the UK VAT on food is still significantly higher, and that’s a straightforward adjustment with tangible impacts.”
Cutting VAT would “enable the sector to be more competitive and to return to greater profitability, allowing for increased hiring”.
The group is currently focused on expanding its presence in the UK while also considering further international growth, eyeing markets in the Americas and Europe.
The drive towards innovative food delivery solutions points to significant shifts within the UK hospitality sector. As costs rise and competition intensifies, businesses are adapting their models, underlining the necessity for supportive policy measures in the face of evolving market pressures. Growth Kitchen’s strategy reflects a broader trend where efficiency and flexibility are paramount in sustaining profitability amid challenges.