Market Overview

Butler Hospitality, Ghost Kitchen for Hotels, Valued at $85M, Raises $15M Series A

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Butler's ghost kitchens turn loss leading hotel restaurants into profit generators and provide a more seamless and elevated guest experience.

Butler plans to grow its service offerings and expand to new cities.

Butler Hospitality, the first ghost kitchen for the hospitality industry, today announced the close of a $15M Series A investment round bringing its valuation to $85M. Led by &vest, the round was filled by Mousse Partners and existing investors Scopus Ventures, Kraft group and Loeb.nyc. The funds will be used to broaden existing service offerings and expand operations beyond New York City and into Chicago, Miami, and Washington D.C.. Butler Hospitality has raised $20.2M in funding to date.

"The trust and support we've received from our investors is incredible encouragement for our team," Butler Hospitality CEO & Founder Tim Gjonbalic said. "As the hospitality industry navigates the challenges of COVID-19 we've strived to adapt and meet the demands of our customers and continue to support our partners."

Butler takes over restaurants inside of hotels and transforms them into delivery hubs that provide virtual room service to nearby full, limited- and select-service hotels. Butler designs its own menu of elevated, accessible luxury food, prepares it in its own kitchens, and delivers it to hotels throughout New York City in under thirty minutes. By partnering directly with hotels, Butler delivers food directly to the hotel room and charges the guest's credit card on file unlike other delivery services.

To help aid its home city, New York, Butler responded quickly to the COVID-19 disaster by working with first responders to deliver over 175,000 meals to healthcare workers, quarantined senior citizens, COVID patients, and military personnel staying in partner hotels. "I'm particularly proud that so many of our partner hotels were able to stay in business during lockdown only because they were part of the Butler network," said CEO Premtim Gjonbalic. "These hotels would not have been able to secure first responder contracts without the room service amenity we provide."

Butler succeeded with its COVID-19 response due to its unique position between hotel managers, building owners, hotel brands, and hospitality vendors. Butler's unbundling of food & beverage operations from day-to-day hospitality management empowered its hotel partners to focus on "heads in beds" while knowing Butler would exceed their in-room dining and catering expectations, even during the COVID-19 lockdown.

Butler is an early player in the ghost kitchen industry. Since launching out of the Entrepreneurs Roundtable Accelerator program in 2017, Butler has grown the number of hotel rooms served more than 100% year-over-year every year for three years. By partnering with industry leading brands including Museum of Ice Cream, &pizza, and Ess-a-Bagel, Butler has brought the most innovative and dynamic food service experience ever to more than 30,000 NYC hotel rooms.

About Butler Hospitality

Founded in 2016, Butler Hospitality is the first ghost kitchen for the hospitality industry and the largest food & beverage service in New York City based on total accessible guests. Delivered fast directly to the room and supported by multiple payment options including bill-to-room, Butler's proprietary ordering and delivery tracking technology makes room service delicious, affordable, and profitable. Butler works with the best hotel management companies including Hersha Hospitality, Crescent, and M&R and works across brands and star ratings. Currently serving more than 30,000 keys in New York City, Butler will be live in Chicago, Miami, and Washington DC by January 2021.

To learn more about Butler Hospitality, please visit www.butlerhospitality.com.

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