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
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 10
Taiwan: 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 11
Leadership 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 12
Sample: 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). 13
Competitive 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 14
Timeline 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 15
Thank you. INVESTOR RELATIONS SEE OUR KITCHENS JASON CHEN ir@justkitchen.com Watch Video: President & CEO investors.justkitchen.com jason@justkitchen.com 16
Appendix 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 18
JustKitchen 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 19
JustKitchen: 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 22
JustKitchen: 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 23
Restaurant 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.” 24
JustKitchen’s Unique Technology Ecosystem 25
JustKitchen: Neihu Hub Facility RECIPE CREATION EQUIPMENT STORAGE Standardized Spoke Kitchen Layout EXTERIOR ORDER PROCESSING REFRIGERATION 26
JustKitchen: 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 27
New 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. 28
JustMarket: 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 29
JustKitchen: 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 30
Founder’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. 31
In-House Food Brands / Menus 32
Food 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 48
JustMarket: - Body Fit Proteins 49
JustMarket: - Michael Wendel's Bread Collection 50
JustMarket: - Smith & Wollensky Steak 51
You can also read