Market Overview

HUNGRY Launches in Philadelphia with the Acquisition of Local Food-Tech Start-Up

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HUNGRY Launches in Philadelphia with the Acquisition of Local Food-Tech Start-Up

HUNGRY connects top local chefs with the $25 billion office-catering market; delivers relief from boring office food at lower costs than traditional caterers

PR Newswire

WASHINGTON, Aug. 8, 2018 /PRNewswire-PRWeb/ -- HUNGRY, the online marketplace that connects independent chefs with the lucrative office catering market, today announced the acquisition of Philadelphia-based LocalStove for an undisclosed amount. With the purchase, HUNGRY has launched its operations in the Philadelphia market, which spends an estimated $550 million annually on corporate catering. The launch follows HUNGRY's June announcement of $1.5 million in seed funding from private investors, bringing its total funding to $4.5 million since its founding in 2016.

HUNGRY's platform saves companies an average of 33 percent over traditional caterers, while helping chefs earn three to 10 times more per hour than standard culinary jobs*. More than 300 companies in the Washington, D.C. market have already put their office food needs in the hands of HUNGRY and its network of top chefs, including Amazon, E-Trade, Microsoft, WeWork, and many more.

"HUNGRY is officially open for business in the City of Brotherly Love! Philly is a historic foodie paradise, with some of the world's most talented culinary artists. It's the perfect city for our first expansion since we launched in the D.C. market last year," said Jeff Grass, HUNGRY CEO. "The LocalStove team has done an outstanding job of curating celebrated local chefs and catering to Philadelphia's vibrant corporate landscape, and we look forward to the accelerated market growth our combined teams will achieve."

LocalStove founders Greg Dubin and Steve Finn started LocalStove while at Wharton Business School, as a way to provide healthy, delicious meals from aspiring chefs to students and local businesses. "HUNGRY has achieved outstanding success in the D.C. market in a very short period of time. Their resources and operational expertise will be a tremendous asset going into the busy holiday catering time. We're thrilled to join their talented team," said LocalStove co-founder Greg Dubin.

HUNGRY provides culinary stars with a platform from which to sell their signature menus directly to corporate customers, who can effortlessly place catering orders via web or phone, which are then delivered by professional HUNGRY staff with meticulous attention to detail. Rather than ordering only from restaurants or traditional caterers, Philadelphia-area offices can order directly from a rapidly growing network of talented local chefs.

HUNGRY launched its marketplace in January 2017 in the Washington, D.C. market and rapidly grew to more than $1 million in sales by the end of that year. HUNGRY has already tripled sales this year and is on course to quadruple sales in 2018.

About Hungry
HUNGRY is a purpose-driven company founded on the belief that companies and their employees deserve delicious meals that are affordable, healthy and delivered reliably and professionally, and chefs deserve greater economic opportunity, recognition and culinary freedom.

HUNGRY is deeply committed to improving the lives of those in the communities it serves. Through its 'Fight Against Hunger' program, HUNGRY donates one meal to those in need for every two purchased; and its 'WeRecycle' program promotes environmental waste reduction by offering biodegradable plates and cutlery with all of its delivered meals.

Average cost of a catered meal in the Philadelphia area is $14+, vs. $10 with HUNGRY. Chefs working on the HUNGRY platform make approximately $75-150 per hour, vs. the industry average of $22 per hour, according to the Bureau of Labor Statistics.

 

SOURCE HUNGRY

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