CORPORATE PRESENTATION - JANUARY 2021 - APP-TO-DOOR DINING FOR THE ON-DEMAND GENERATION - Investors | Just ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
APP-TO-DOOR DINING FOR THE ON-DEMAND GENERATION.
CORPORATE PRESENTATION – JANUARY 2021
1
DISCLAIMER, CONFIDENTIALITY AND FORWARD-LOOKING STATEMENTS
The Presentation contained in this document has been prepared by Just Kitchen Holdings Inc. using its best efforts to realistically and factually
present the information contained. However, subjective opinion, dependence upon factors outside Just Kitchen Holdings Inc’s control and
outside information sources unavoidably dictate that Just Kitchen Holdings Inc. cannot warrant the information contained to be exhaustive,
complete or sufficient. In addition, many factors can affect the Presentation which could significantly alter the results intended by Just Kitchen
Holdings Inc., rendering the Presentation unattainable or substantially altered. Therefore, interested users should conduct their own
assessment and consult with their own professional advisors prior to making any investment decisions.
This Presentation does not constitute a prospectus or public offering for financing, and no guarantees are made or implied with regard to Just
Kitchen Holdings Inc. proposed ventures.
Confidentiality: The Presentation is being disclosed to the user for the user’s discussion, review, and/or evaluation only. The user agrees to hold
the Presentation, and all related information and discussions, in strict confidence, except that user may disclose the Presentation to a limited
number of advisors and employees of the user to the extent necessary for user to adequately evaluate the Presentation. User warrants that any
such persons shall be advised of the confidential nature of the Presentation before gaining access to the same and that no such advisor or
employee shall use or disclose the Presentation except as permitted by this Agreement.
Projections: The presentation’s financial and other projections have been prepared using assumptions and hypotheses created by Just Kitchen
Holdings Inc. management based on information provided to them and through due diligence. The assumptions used in the preparation of the
projection reflect management’s intended course of action for the projection period based upon management’s judgement as to the most
probable setoff economic conditions if the assumptions they consider most likely are realized. The assumptions may not necessarily be the
most probable and are based upon information existing as at the date of this presentation.
The assumptions are those that management believes are significant to the projection. Some assumptions may not materialize, and
unanticipated events and circumstances may occur subsequent to the date of this projection; therefore, the actual results achieved during the
projection period may vary materially from the projections.
This projection is based on our assumptions and there is a major risk that actual results will vary, perhaps materially, from the results
projected.
2
What is JustKitchen? HUB
§ Network of “ghost kitchens” or
“dark kitchens” that achieve lower
overhead and operating costs. ORDER
§ Hub-and-Spoke operating model
uniquely enables maximization of =
efficiencies and margins. SPOKE
§ Offers delivery-only meals under
its own proprietary menus and
established restaurant brands.
DELIVER
§ Franchising of virtual kitchens.
3
Market Overview
Consumer preferences are shifting –
diners want their favorite foods on-demand, and delivered quickly
ONLINE VS. OFFLINE SHARE OF GLOBAL ONLINE FOOD 2019 ONLINE FOOD DELIVERY
MAJOR FOOD DELIVERY MARKETS (%)1 DELIVERY MARKET (2020 – INDUSTRY IN ASIA3
2023)2
USD
47 42
64 58 53 $154 USD
73
92 92 89 83 BILLION $53 BILLION
= nearly 50%
USD of global
58 demand.
36 42 47 53
$111
27
11 17 BILLION
8 8
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2020 2023
Offline (call-in delivery, walk-in orders) 11.5% CAGR
Online (via web or app)
1. McKinsey & Company, The changing market for food delivery 2. Research and Markets, 2019 3. Hong Kong Business, Delivering the Virtual Restaurant of Tomorrow, Oct 2019
44
The Problem
Underserved
Brick-and-mortar restaurants are costly to open Market
and operate:
§ 3-5% profit margins on average1, with a failure OUT OF
ANGE.
rate of 70% within 3-5 years of opening 2
Underserved
OUT OF
LUCK
Market TYPICAL
Solutions Are Emerging
GHOST
KITCHEN
§ “Ghost” kitchens reduce operating and overhead
expenses by eliminating the high cost of TAIPEI
restaurant seating CITY
OUT OF
However...
RANGE.
OUT OF
LUCK
DELIVERY ZONE
Co-sharing ghost kitchens still: Underserved
Market
§ Lack support, such as supply chain, kitchen
equipment and other operating systems
§ Lack geographical reach – typically constrained
by 4-5 km delivery radius
5 1. Toast Lab, 2019. 2. Hong Kong Business, Delivering the Virtual Restaurant of Tomorrow, October 2019.
JustKitchen’s Unique Model
Spoke
Hub and Spoke “Virtual” Kitchens
§ Hub (full-scale commercial kitchen) provides
semi-prepared food items to Spokes
§ Spokes complete meals for delivery Spoke
ADVANTAGES: Hub
§ Extends geographic reach
§ Tailored supply to local demand
§ Increases rate of food output
§ Lowers average delivery time
Spoke
§ Results in hotter, faster and fresher food
Spoke
Spoke
Spokes serve valuable urban areas
with smaller, cheaper footprints.
6
Food & Beverage Landscape – JustKitchen Expertise
Delivery Infrastructure Restaurants/ Content Licensers/
Customers Marketplaces Software Provider Product Makers Franchises
B2C Data Kitchen
B2B Virtual
Integrator Infrastructure Kitchens
Software:
POS
Software: Third-Party
Online Ordering Logistics
3rd Party Logistics
7
Tailoring for Markets
$$$
Offering a variety of:
§ Price points
§ Cuisine types
§ Brands
§ Day-Parts
§ Evolving pipeline of food items
Asian Cuisine Western Cuisine
Western
Cuisine
$
Legend:
JustKitchen’s In-House Brands
Third-Party Partners
$
8
Tech Stack – Leveraging Data to Create Value
§ Customer data informs menu creation and improves supply chain management
§ Data determines menu, time of day, type of food to proactively predict demand
Create Hub Spokes Delivery Delight
Delight
Create Hub Spokes Delivery Delight
Create meals, Meals are Local kitchen Select partners Customers
menus and food semi-prepared complete meals quickly transport enjoy fresher
brands then sent to in 5 minutes food items to end and faster
Spokes customers meals
25% customer feedback & data to create menus & project demand
9
Virtual Kitchen Franchise Model
Data
Integrator Software
JustKitchen software integration into all delivery / marketplace platforms
Kitchen
Infrastructure
Infrastructure
Equipment & design know-how and expertise
Virtual
Kitchens
Restaurants/Product Makers
Operator / Franchisee operates virtual kitchen
Proprietary
Brands
Content Licensers/Franchises
Licenses rights
10Taiwan: Gateway to the World JUSTKITCHEN EXPANSION ROADMAP
LOW OVERHEAD & HIGH MARKET
OPERATING COSTS EXPOSURE
§ Minimal cost to start a § USD $16 Billion
business dining market, growing
17 years consecutively
§ Mature market to test and
scale up globally § High Density
§ Established food & beverage (24 million people on a
industry 36,193 km2 island)
JustKitchen is currently planning to expand to:
60% of Americans order
food 2 times per week 1, Hong Kong Thailand
which accounts for:
20.7 Billion Singapore United States
Meals / yr. Indonesia Philippines
1, Upserve, 2020
11Leadership Team
EXECUTIVE OFFICERS INDEPENDENT DIRECTORS
Jason Chen, CEO, President, and Director: 25 years in Darryl Cardey: Chartered Professional Accountant
top-level management and capital markets in North previously with KPMG; director and financial advisor to
America and Asia public and private companies in the resource and
technology sectors
Kent Wu, COO & Director : 20 years of e-commerce and
logistics experience; three successful exits, most recently to Darren Devine: Co-Principal of CDM Capital Partners;
GrubHub advisor to numerous multinational M&A transactions
Adam Kniec, CFO : Former CFO of 10+ companies across Kai Huang: Creator of Guitar Hero while Co-Founder
& CEO of RedOctane; Co-Founder & CEO of Blue
industries including software development, casinos and
Goji; Co-Founder & CEO of Adux Software
online gaming
Freddie Liu: Partner at Purestone Capital Group; CSO
Mark Lin, CTO: 10+ years in business development and
of TPK Holdings – currently one of the world’s largest
operations management for information technology and makers of touch screens for mobile phones and tablets;
payment processing companies in North America and APAC former head of Real Estate unit at Citibank
Yang Liu, CSO : 15+ years in corporate development and
business development for publicly-traded companies in the
Food & Beverage Industry
John Yu, CMO: 15+ years in retail and operations
management in Asia; founder of multiple consumer brands
across numerous industries
12Sample: Full-Year Economics per Mature Spoke:
Country Taiwan US
Capital cost per Spoke* (all dollars in USD) $191,667 $255,667
Average daily orders per Spoke 350 450
Average dollar amount per order $15.00 $20.00
Annual gross revenue per Spoke (365 days) $1,916,250 $3,285,000
Operating profit per Spoke $402,413 $689,850
Operating profit margin 21% 21%
One-Year ROIC 110% 170%
Payback Period (in years) 0.48 0.37
Spokes are designed to meaningfully contribute to Hub capital
costs, operating expenses and corporate-level SG&A expenses.
*Total estimated capital cost per Spoke in Taiwan and the US includes
direct Spoke-related costs of $96,000 and $160,000, respectively, and an
allocation for indirect Hub-related costs ($1,148,000 per Hub, allocated
equally over 12 Spokes).
13Competitive Landscape
Total Funding Pre-Money Restaurants/ Content/
Company Name Country Software Infrastructure
to Date* Valuation* Products Franchises
REEF Technology $1.2 B $900 mm USA
Cloud Kitchens $550 mm $4.6 B USA
Ordermark $150.6 mm Unknown USA
Chowbus $67.2 mm Unknown USA
Chownow $62 mm $135 mm USA
Kitchen United $50 mm $100 mm USA
Rebel Foods $342 mm $400 mm India
Karma Kitchen $318 mm Unknown UK
Hungry Panda $90 mm Unknown UK
Sweetheart Kitchen $48 mm Unknown UAE
Keatz $23 mm $25 mm Germany
Yummy Corporation $19.8 mm Unknown Indonesia
FanTuan $17 mm Unknown Canada
JustKitchen $9.6 mm $14 mm Taiwan
*All dollars in USD
14
14Timeline of Target Milestones
YTD By Dec
2021
2020 31, 2020
Grow to two Hubs – currently in
þ Obtain seed capital, incl. þ Launch grocery delivery as þ Continue core data discussion with one of the largest
from Sparklabs a new business line technology build-out
food factories in Taiwan
þ Complete initial Board þ Grow to 11 in-house food þ Grow to 14 Spokes
appointments brands/menus Launch customer loyalty/rewards
þ Grow to 13 in-house program
þ Operate with one Hub and þ Partner with new third- food brands/menus
four Spokes parties/restaurants Explore development of own
delivery fleet
þ Secure key employees and þ Grow to 8 Spokes
strategic advisors 35 Spokes in Taiwan
Expand to Hong Kong
Begin international expansion
beyond Taiwan and Hong Kong
15Thank you.
INVESTOR RELATIONS SEE OUR KITCHENS JASON CHEN
ir@justkitchen.com Watch Video: President & CEO
investors.justkitchen.com jason@justkitchen.com
16Appendix 17
The Ghost Kitchen Industry - Making Global Headlines
“Operating a virtual kitchen has a lot of “Kroger is the latest big name “A pandemic surge in food delivery
to underwrite ghost kitchens… has made ghost kitchens and virtual eateries
advantages over operating a traditional
restaurant: lower operational cost, lower risks, Chick-fil-A and Wendy’s are one of the only growth areas in
more efficiency and more flexibility..” among the others getting in the restaurant industry”
– Forbes, September 29, 2020 on the trend.” – The Washington Post, September 17, 2020
– Fast Company, October 8, 2020
“…opening a bricks-and-mortar restaurant is “Nathan’s Famous announced its partnership with “Dark kitchens (or cloud kitchens) on
high-risk and expensive, whereas ghost kitchens REEF Kitchens…a national network of 70+ track for a bright future in a post-
are lower-risk, offering a more affordable way neighborhood kitchens across 18 cities that allows coronavirus world .”
for entrepreneurs to enter the business.” food entrepreneurs, local restaurants, and (US) – ABC News, September 11, 2020
– The New Yorker, June 28, 2020 restaurant brands to open
and quickly expand their delivery businesses.”
– QSR Magazine, July 28, 2020
18JustKitchen in the News
https://www.digitimes.com/news/a20201202PD217.html?mod=0
https://www.restaurantindia.in/article/how-this-taiwan-based-cloud-kitchen-
has-achieved-75-customer-loyalty-during-the-pandemic.13787
https://www.taiwannews.com.tw/en/news/3996938
https://taipeitimes.com/News/biz/archives/2020/09/19/2003743674 https://meet.bnext.com.tw/intl/articles/view/46698
19JustKitchen: Media Exposure in Asia 20
JustKitchen: Media Exposure in Asia 21
JustKitchen: Media Exposure in Asia
影片報導
壹電視新聞台 【新聞深呼吸】疫軍突起新經濟 - 全台瘋外送 無店面虛擬廚房單月狂賣3萬個便當！
https://www.youtube.com/watch?v=yQ-4gT-pkp0&feature=youtu.be
年代新聞台【年代關鍵字】雲端廚房正夯！一次開5家餐廳
https://youtu.be/p29ZDvYhZEo
年代新聞台【台灣向錢衝】外送商機逾兩百億 幽靈廚房拚升級
https://youtu.be/FG1WC1jX-Cg?t=279
文字報導
商業周刊 - 影子廚房當紅 兩個「水管系統財」爆發中
https://www.businessweekly.com.tw/Archive/Article?StrId=7001330
今周刊 - 隱藏版科技廚房現身，Just Kitchen不只賣快，也賣美味
https://www.businesstoday.com.tw/article/category/183015/post/202008250044/%E9%9A%B1%E8%97%8F%E7%89%88%E7%A7%91%E6%8A%80%
E5%BB%9A%E6%88%BF%E7%8F%BE%E8%BA%AB%EF%BC%8CJust%20Kitchen%E4%B8%8D%E5%8F%AA%E8%B3%A3%E5%BF%AB%EF%BC%8
C%E4%B9%9F%E8%B3%A3%E7%BE%8E%E5%91%B3
天下雜誌 - 3分鐘就可出餐、外送範圍更廣。「幽靈廚房2.0」怎麼做到？
https://www.cw.com.tw/article/5100449?template=transformers
遠見雜誌 - 幽靈廚房、科技茶園擁抱智慧「神助手」
https://www.gvm.com.tw/article/72966
22JustKitchen: Media Exposure in Asia
部落客
愛吃鬼芸芸
米其林一星大三元酒樓，也有UBER EATS外送餐盒啦
https://aniseblog.tw/223576
美食家 Facebook 貼文
徐天麟
https://www.facebook.com/1283552023/posts/10223732328797899/?extid=zhuu4wCXRvJ2GCdW&d=n
Peray
https://www.facebook.com/534386606/posts/10157181781036607/?extid=MMn3ZsDDI3d3967D&d=n
愛吃鬼芸芸
https://www.facebook.com/382641298513460/posts/3122173711226858/?extid=3MyAQ6WfziEfGLtk&d=n
Claire食旅記事
https://www.facebook.com/1755448491/posts/10207788304942996/?extid=dQgrreTjxFnR4hka&d=n
Daily Focus
https://www.facebook.com/142716382509372/posts/3291018304345815/?extid=8aYkiPRTuHFQzo3r&d=n
23Restaurant Industry 2030 – National Restaurant Association, Nov 2019
Summary – 10 Sure Things in 2030 (Page 3): https://restaurant.org/downloads/pdfs/research/restaurant2030.pdf)
1. The definition of “restaurant” will change. – “The delivery-only restaurant is on the rise through virtual restaurants and
“ghost kitchens.”
2. Off-premises opportunities will drive industry growth. – “Delivery orders are booming, and business models are shifting
fast to find ways to serve that customer base.”
3. Margin pressures will continue. – “Labor costs, real-estate costs, and increasing investments in delivery and technology
will continue to put pressure on the (traditional) restaurant P&L.”
4. Data is king. – “Restaurants will see new opportunities to apply data analytics to predict and capitalize on consumer
demand and optimize supply economics.”
5. Restaurants will serve - and employ - a different demographic. – “Restaurant operators will need to accommodate both
the dining preferences and work styles of an increasingly diverse American public.”
6. Recruitment, retention and training will remain top priorities. – “Restaurants will compete with other industries for tech
talent.”
7. Technology will drive tremendous advances in food safety, food sourcing, and sustainability. – “As the supply chain
grows increasingly complex, operators will leverage blockchain and other new traceability technologies…to become more
efficient, transparent organizations.”
8. Government will be a greater factor in everything operators do. – “Governments may continue to add to the legislation,
taxation and regulation affecting restaurant operators.”
9. Sustainability isn’t just a buzzword. – “It’s an important way to drive costs down as well as showcase the industry’s efforts
to attract and serve the growing number of guests who are interested in everything about sustainability... “
10. Restaurants will continue to bring people together. – “That strong commitment to guests and consumers of every type
will be core to the industry’s identity in 2030 as operators innovate and thrive in an age of increasing technology.”
24JustKitchen’s Unique Technology Ecosystem 25
JustKitchen: Neihu Hub Facility
RECIPE CREATION EQUIPMENT STORAGE
Standardized Spoke Kitchen Layout
EXTERIOR ORDER PROCESSING REFRIGERATION
26JustKitchen: Neihu Hub Facility
Taipei Neihu Taipei Bade Taipei Xinyi Taipei Gongguan
Taichung Wenxin New Taipei City Banqiao New Taipei City Zhonghe New Taipei City Shihlin
27New Concept: JustKitchen “Container” Spokes
JustKitchen has partnered with FoodPanda to develop portable “container” Spoke kitchens that can
be set up in high density areas where real estate is more expensive, for a fraction of the cost.
28JustMarket: Business Vertical – Online Grocery Delivery
JustMarket is leveraging brand recognition, existing
SKUs and real estate into grocery deliveries:
§ Global online grocery estimated at US$198.5B in 2020 and
projected to reach US$550.7B by 2027.
§ Platform sell grocery items base on real-time data analytics.
§ 20 targeted locations in Taiwan.
§ Special and artisanal products to feature both in-house and
third-party brands, for example:
Ø “Body Fit” Series
Ø "Nutritionist Guided" Series
Ø “Smith & Wollensky” Steak House Series
Ø Michelin Chef Series
29JustKitchen: ESG Focus
ENVIRONMENTAL SOCIAL GOVERNANCE
§ Hub-and-spoke model reduces § Menus and brands attuned to § Cybersecurity and customer
delivery distances and lowers health consciousness data privacy is highly respected
JustKitchen’s carbon footprint
§ Business model designed to § Independent chairperson of the
§ Lack of dine-in infrastructure encourage/reward feedback board with four independent
reduces consumption of from customers directors and one member of
utilities company management
§ Low capital requirement
§ Efficient operations and enables flexibility to respond to § Audit, compensation and
modern technologies lower changing trends nomination committees all
food spoilage and waste have independent chairpersons
§ Percentage of profits to be
§ Food packaging is minimized donated to charities focused on § Balance of domestic and
while keeping meals warm alleviating hunger international membership
§ Virtual board meetings and § Mission of working with § Areas of expertise reflect
materials to minimize aspiring local chefs and JustKitchen’s core capabilities
emissions and paper waste entrepreneurs to incubate
culinary businesses
30Founder’s Story
Jason Chen – President & CEO of JustKitchen
A legacy of building successful restaurant brands and franchises in Taiwan
2013 2017 2020
Bayshore Pacific 2015: BPH launches BPH acquires the Dan 2018: BPH launches BPH has a combined
Hospitality Ltd (“BPH”) the Texas Ryan’s Chicago Grill Smith & Wollensky revenue of over US $100
is established. Roadhouse franchise. franchise (upscale million, with 28
franchise in Taiwan. American steakhouse) in restaurants and 1,300
BPH completes BPH acquires Taiwan. employees.
successful turnaround of Amaroni’s franchise.
TGI Fridays franchise in 2019: JustKitchen JustKitchen is currently
Taiwan. established in Taipei, growing across Taiwan
Taiwan. with plans to expand in
Asia and globally.
31In-House
Food Brands / Menus
32Food Brands: BIT Beef Noodle Menu 33
Food Brands: Body Fit Menu 34
Food Brands: Hot Ones Menu 35
Food Brands: Blue Avocado by Michael Wendel 36
Food Brands: K.Bao Menu 37
Food Brands: Just Chicken Menu 38
Food Brands: LuWei Lab Menu 39
Food Brands: Thai High Healthy Bento Menu 40
Food Brands: Go Lean Nutritionist Designed Menu 41
Food Brands: SiChuan Beef Noodle 42
Food Brands: Hot Pot 43
Food Brands: Japanese Unadon Eel Rice & Curry Rice 44
Partner Brands: Michelin 1 Star, 3 Coins Menu 45
Partner Brands: The Plate Michelin, Orchid by Peng Menu 46
Partner Brands: T.G.I. Fridays 47
Sample - JustMarket
Branded Grocery Items
48JustMarket: - Body Fit Proteins 49
JustMarket: - Michael Wendel's Bread Collection 50
JustMarket: - Smith & Wollensky Steak 51
You can also read
