Starbird Chicken announced its largest equity fundraising round of $4 million, from current investors and industry insiders. This raise will back the brand for further expansion in Northern California and into the Los Angeles area.
Aaron Noveshen, founder and CEO of Starbird Chicken says, “This landmark financing reflects the industry’s belief in our vision that we’ve had for Starbird since day one - that the fast food landscape was primed for an upgrade in quality and convenience in user experience through menu items designed with customers’ evolving tastes in mind and a modern technology platform.” Noveshen added, “We will honor our commitment to our stakeholders by continuing to innovate as the leader in super-premium fast food.”
Launched in June 2016 with one location in Sunnyvale, CA, Starbird will have nine locations in the Bay Area by Q1 2021, having just opened a streetside location in Campbell and a cloud kitchen in Oakland, with its first East Bay streetside location in Walnut Creek soon to follow.
Lead investor for the round, Greg Dollarhyde - founder of Dollarhyde Enterprise Group, says: "I am extremely excited to have the opportunity to work with Aaron and his capable team in this phenomenal opportunity with their newly-evolving premium fast food offering. It's timely, multi-faceted technology platform along with the positioning of this absolutely craveable food concept makes Starbird the concept to watch. I'm proud to have been a partner with the company since the first round, and I see a big future here." In addition to the above, new investments came from the consumer products PE fund Cambridge SPG, as well as clients of Arlington Capital Advisors, who were earlier advisors to the company.
While the COVID-19 pandemic and lack of support from the federal government has been a challenge for restaurateurs, Starbird has maintained momentum through its curated variety of food offerings and its superior ability to serve incredibly fresh chicken offerings - sandwiches, salads, tacos, tenders, and wings - with a strong, off-premise appeal. Their San Francisco Cloud Kitchen has seen order volume grow 100% during the pandemic, with sales per square foot of over $5,000 per year. Streetside restaurants have seen positive comparable store sales of up to 50% in the last six months, and have proven their leadership in the marketplace through strong top-line sales of more than $1,300 per foot.