CORPORATE PRESENTATION - MARCH 2021 - APP-TO-DOOR DINING FOR THE ON-DEMAND GENERATION - Investors ...
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A P P - T O - D O O R D I N I N G F O R T H E O N - D E M A N D G E N E R AT I O N .
CORPORATE PRESENTATION – MARCH 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 DELIVERY 2019 ONLINE FOOD DELIVERY
MAJOR FOOD DELIVERY MARKETS (%)1 MARKET (2020 – 2023)2 INDUSTRY IN ASIA3
USD
47 42
64 58 53 $154 USD
73
92 92 89 83 BILLION $53 BILLION
= nearly 50% of
USD global demand.
58
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 and operate: Market
§ 3-5% profit margins on average 1, with a failure rate of 70%
within 3-5 years of opening2 OUT OF
ANGE.
Underserved
OUT OF
Solutions Are Emerging LUCK
Market TYPICAL
GHOST
KITCHEN
§ “Ghost” kitchens reduce operating and overhead expenses by
eliminating the high cost of restaurant seating
TAIPEI
However... CITY
OUT OF
RANGE.
Co-sharing ghost kitchens still: OUT OF
LUCK
DELIVERY ZONE
§ Lack support, such as supply chain, kitchen equipment and Underserved
other operating systems Market
§ 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
Hub
ADVANTAGES:
§ 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
§ JustKitchen is strategically positioned across the value chain
§ Allows for continuation of high growth trajectory in current and new markets
Delivery Infrastructure Restaurants/ Product Content Licensers/
Customers Marketplaces Software Provider Makers Franchises
B2C Data Kitchen Virtual
B2B
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, menus Meals are Local kitchen Select partners quickly Customers enjoy
and food brands semi-prepared then complete meals in 5 transport food items to fresher and faster
sent to Spokes minutes end customers meals
25% customer feedback & data to create menus & project demand
9
Tech Stack – JustKitchen App
§ JustKitchen will be rolling out a proprietary meal delivery app in early 2021
§ Developing a customer loyalty program similar to Uber Eats, Air BnB
10Virtual Kitchen Franchise Model
§ Leveraging our strength in key areas, JustKitchen is striving to become the global franchisor of
choice for ghost/virtual kitchens and delivery-only food brands
Kitchen Virtual
Data Integrator Proprietary
Infrastructure Kitchens
Brands
Software Infrastructure Restaurants/ Content Licensers/
JustKitchen software
Product Makers Franchises
Equipment & design
integration into all know-how and expertise Operator / Franchisee Licenses rights to content
delivery / marketplace operates virtual kitchen and food brands
platforms
11Taiwan: Gateway to the World JUSTKITCHEN EXPANSION ROADMAP
LOW OVERHEAD & HIGH MARKET
OPERATING COSTS EXPOSURE
§ Minimal cost to start a business § USD $16 Billion
dining market, growing
§ Mature market to test and scale 17 years consecutively
up globally
§ Established food & beverage § High Density
industry (24 million people on a
36,193 km2 island)
JustKitchen is currently planning to expand to:
60% of Americans order
food 2 times per week 1, which Hong Kong Thailand
accounts for:
20.7 Billion Singapore United States
Meals / yr. Indonesia Philippines
1, Upserve, 2020
12Leadership 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
13Sample: 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** 250 450
Average dollar amount per order $15.00 $20.00
Annual gross revenue per Spoke (365 days) $1,368,750 $3,285,000
Operating profit per Spoke $287,400 $689,850
Operating profit margin 21% 21%
One-Year ROIC 50% 170%
Payback Period (in years) 0.67 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).
** Spoke capacity in Taiwan expected to range between 300 to 400 orders per day.
14Competitive 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
15
15Timeline of Target Milestones
YTD By Dec
2021
2020 31, 2020
Grow to two Hubs – currently in
þ Obtain seed capital, incl. from þ Launch grocery delivery as a new þ Continue core data technology discussion with one of the largest food
Sparklabs business line build-out
factories in Taiwan
þ Complete initial Board þ Grow to 11 in-house food þ Grow to 14 Spokes
appointments brands/menus Launch proprietary meal ordering app
þ Grow to 13 in-house Launch customer loyalty/rewards program
þ Operate with one Hub and four þ Partner with new third- food brands/menus
Spokes parties/restaurants
Explore development of own delivery fleet
þ Secure key employees and þ Grow to 8 Spokes
35 Spokes in Taiwan
strategic advisors
Expand to Hong Kong
Begin international expansion beyond
Taiwan and Hong Kong
16Thank you.
INVESTOR RELATIONS SEE OUR KITCHENS JASON CHEN
ir@justkitchen.com Watch Video: President & CEO
investors.justkitchen.com jason@justkitchen.com
17Appendix 18
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
19JustKitchen in the News
https://techcrunch.com/2021/01/21/justkitchen-is-using-cloud-kitchens-to-create- https://www.restaurantindia.in/article/how-this-taiwan-based-cloud-kitchen-has-achieved-75-
the-next-generation-of-restaurant-franchising/ customer-loyalty-during-the-pandemic.13787
https://asia.nikkei.com/Business/Food-Beverage/Asia-s-cloud-kitchens-expect-delivery- https://www.taiwannews.com.tw/en/news/3996938
boom-to-outlast-COVID
20JustKitchen in the News
https://meet.bnext.com.tw/intl/articles/view/46698
https://taipeitimes.com/News/biz/archives/2020/09/19/2003743674
https://www.digitimes.com/news/a20201202PD217.html?mod=0
21JustKitchen in the News
(United Daily News) is a daily newspaper published in Taiwan. It includes local and International news, covering economic and financial news, lifestyle and society. The website has
a daily reach of 182,000 unique visitors and has 1.3M Facebook followers.
View feature here: https://money.udn.com/money/story/5599/5282664
(World Journal) is a daily newspaper published in Chinese based in New York. It covers news and information relevant to the Chinese community in the US. The website has a daily
reach of 1,281,000 unique visitors.
View feature here: https://www.worldjournal.com/wj/story/121480/5284762?from=wj_breaknews_index
(The Standard) is a Thai digital news outlet covering international and domestic stories including economic, social, political, and cultural topics.
View feature here: https://thestandard.co/cloud-kitchen/
Google Translate Link (English): https://translate.google.com/translate?hl=en&sl=th&u=https://thestandard.co/tag/cloud-kitchen/&prev=search&pto=aue
22JustKitchen: Media Exposure in Asia 23
JustKitchen: Media Exposure in Asia 24
JustKitchen: Media Exposure in Asia
影片報導 (Videos)
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
不止是省店租！「雲端廚房」如何用新思維挖掘「外送」金礦
https://www.youtube.com/watch?v=vhhu64SG5l8
文字報導 (Articles)
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%E
7%8F%BE%E8%BA%AB%EF%BC%8CJust%20Kitchen%E4%B8%8D%E5%8F%AA%E8%B3%A3%E5%BF%AB%EF%BC%8C%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
自由時報 - 虛擬廚房大爆發Just Kitchen 看準海外版圖
https://ent.ltn.com.tw/news/breakingnews/3457399
25JustKitchen: Media Exposure in Asia
部落客 (Influencer/blogger)
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
26Restaurant 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.”
27JustKitchen’s Unique Technology Ecosystem 28
JustKitchen: Neihu Hub Facility
RECIPE CREATION EQUIPMENT STORAGE
Standardized Spoke Kitchen Layout
EXTERIOR ORDER PROCESSING REFRIGERATION
29JustKitchen: 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
30New 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.
31JustMarket: 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
32JustKitchen: ESG Focus
ENVIRONMENTAL SOCIAL GOVERNANCE
§ Hub-and-spoke model reduces delivery § Menus and brands attuned to health § Cybersecurity and customer data
distances and lowers JustKitchen’s consciousness privacy is highly respected
carbon footprint
§ Business model designed to § Independent chairperson of the board
§ Lack of dine-in infrastructure reduces encourage/reward feedback from with four independent directors and
consumption of utilities customers one member of company management
§ Efficient operations and modern § Low capital requirement enables § Audit, compensation and nomination
technologies lower food spoilage and flexibility to respond to changing committees all have independent
waste trends chairpersons
§ Food packaging is minimized while § Percentage of profits to be donated to § Balance of domestic and international
keeping meals warm charities focused on alleviating hunger membership
§ Virtual board meetings and materials § Mission of working with aspiring local § Areas of expertise reflect JustKitchen’s
to minimize emissions and paper chefs and entrepreneurs to incubate core capabilities
waste culinary businesses
33Founder’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 the BPH acquires the Dan 2018: BPH launches Smith & BPH has a combined revenue
Hospitality Ltd (“BPH”) Texas Roadhouse Ryan’s Chicago Grill Wollensky franchise (upscale of over US $100 million, with
is established. franchise in Taiwan. franchise. American steakhouse) in 28 restaurants and 1,300
Taiwan. employees.
BPH completes BPH acquires Amaroni’s
successful turnaround of franchise. 2019: JustKitchen established JustKitchen is currently
TGI Fridays franchise in in Taipei, Taiwan. growing across Taiwan with
Taiwan. plans to expand in Asia and
globally.
34In-House
Food Brands / Menus
35Food Brands: BIT Beef Noodle Menu 36
Food Brands: Body Fit Menu 37
Food Brands: Hot Ones Menu 38
Food Brands: Blue Avocado Menu 39
Food Brands: K Bao Menu 40
Food Brands: Just Chicken Menu 41
Food Brands: LuWei Lab Menu 42
Food Brands: Thai High Menu 43
Food Brands: Go Lean Nutritionist Designed Menu 44
Food Brands: SiChuan Menu 45
Food Brands: Hot Pot Menu 46
Food Brands: Unadon Japanese Eel Rice & Curry Rice Menu 47
Food Brands: Burgers and Dogs Menu
Burgers & Dogs
IF FG
h Z t
DICHFJ IF FG $
AI t G IF FG $
t 5 IF FG $
t CIH IHH F IF FG $
t DC J 1IGH F IF FG $
p t 7 IF FG $
DH +D G
Qy A GG DH +D G $
O Pn c
F C DC
T F G
l0 A ñD
a M 2D 1DF
d e
ur A C F C7
DADC 7
DCJIC 7
7 I CJ C 7
s f N F CH A IHJ 7
m D DA $
FD $
FH $
y B F CD
S B F CD
d
Qg F C F G
s o i A I
48Partner Brands: Michelin Star Restaurant, Three Coins Menu 49
Partner Brands: Michelin Star Restaurant, Orchid by Peng Menu 50
Partner Brands: TGI Friday’s Menu 51
Sample - JustMarket
Branded Grocery Items
52JustMarket: - Body Fit Proteins 53
JustMarket: - Michael Wendel's Bread Collection 54
JustMarket: - Smith & Wollensky Steak 55
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