Food hall concept Local Kitchens announced Tuesday that it raised $40 million to fuel further growth across the country.
The funding round was led by venture capitalist General Catalyst Partners, with participation from existing investors Human Capital, Pear VC, and DoorDash cofounder Stanley Tang (he will also join the board of directors). With the latest injection, the brand has raised $75 million.
Local Kitchens, founded in 2020 by former DoorDash executives, offers multiple brands like a traditional food hall, but there aren’t separate booths. Customers can order in person, online, or in the mobile app. Meals from different concepts can be put on one ticket and are made in the same kitchen. There’s also room for on-premises dining.
Unlike other ghost kitchen and virtual brand models, Local Kitchens management directly oversees the restaurants and hires its own employees to prep food in-house. The company’s operational model allows it to achieve 50 percent more sales per human hour than a traditional restaurant and pay better wages.
There are currently 12 locations throughout Northern California. The plan is to use the extra capital to expand in new Los Angeles communities and beyond the Golden State.
“No matter how much technology disruption there is, the future of restaurants is still about great food and great service – and that starts with investing in our employees,” Jon Goldsmith, CEO and cofounder of Local Kitchens, said in a statement. “We are creating efficiencies that benefit our employees, culinary partners, and the communities we serve.”
Local Kitchens’ strategy is to partner with local communities and find beloved local restaurant brands and nationally acclaimed chefs. Each food hall offers a handful of concepts, which varies based on location. For instance, the venue in San Bruno, California, has Humphry Slocombe, a gourmet San Francisco ice cream brand, while the Roseville location has Nash and Proper, a Nashville hot chicken concept.
The chain has grown fivefold and achieved unit-level profitability since its Series A in 2021. Local Kitchens claims that one in 10 households in the San Francisco Bay Area have tried its restaurants.
“In a restaurant landscape transformed by consumer demand for convenience and digital integration, it’s imperative to innovate and craft a model that empowers consumers, supports workers, and uplifts local restaurants,” Kyle Doherty, managing director at General Catalyst, said in a statement. “In our view, Local Kitchens is the future of restaurants, bringing variety and convenience to every neighborhood alongside a business model that is sustainable for the whole ecosystem.”
