HUBB Kitchens
Regulation Crowdfunding
Raising up to $467,550
for 8.5% Equity Stake
Suggested Min. Investment: $1,000
Accepting reservations through July
LIVE offering following
Coming Soon!
Start date: October 29, 2021
End date: August 12, 2022
Welcome! We are collecting indications of interest for our planned capital raise through Regulation Crowdfunding. Please reference important guidance regarding Rule 206 under the Disclosures section below.
Why fund our local story
- HUBB Kitchens is projecting 5 locations by the end of 2022, one location being the first ever multiconcept ghost kitchen in an airport.
- This first ever multiconcept ghost kitchen in an airport is a collaboration between HUBB Kitchens, RDU International, and Reef Kitchens - the largest ghost kitchen operator in the world.
- Since opening, HUBB Kitchens has over 600 applicants awaiting spaces, 42 active clients, and 6 entrepreneurs have become full-time business owners.
- Our first location opened December 2020; it was profitable starting March 2021 and is at 100% capacity since September. Our second location is already at 50% capacity in advance of its planned June opening.
- In addition to our culinary incubator services, we operate in the $43.1 billion ghost kitchen industry, which is expected to grow to $71.4 billion by 2027.
Overview
The Opportunity
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Consumers and capital are flooding alternative restaurant models
COVID-19 set off a seismic shift in food consumer behavior. With the restriction of physical dining and the advancement of technology, the landscape for restaurateurs has permanently changed.
In addition to shifting consumer behavior and COVID restrictions, labor shortages and rising product costs have restaurant owners searching for alternative business models that will help them reach hungry customers.
To navigate this new culinary world, restaurateurs and entrepreneurs have flocked to "ghost" or "dark" kitchen models: stand-alone commercial kitchens designed only for catering and delivery service. Pitchbook reports that a staggering $22 Billion in funding has been raised for companies in this exploding “ghost kitchen” market.
The Problem
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Local companies can't find the space they need to take advantage of this new market
Affordable rentable kitchen space is essentially nonexistent in “The Triangle”. While tech giants and venture capitalists may be benefiting from the booming food delivery scene, local business owners in NC are still struggling to tap into this growing demand. Demand for commercial kitchen space has spiked but capacity has not kept up. Simply put, there isn’t enough space for local restaurateurs to produce their meals, and a growing population is only widening the gap between demand and capacity.
The Solution
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Affordable all-inclusive co-working space for local food service businesses
HUBB Kitchens is helping local "foodpreneurs" start and grow their businesses in North Carolina with shared commercial kitchen spaces for rent by the hour, week, or month. We also provide cold and dry storage, plus business and marketing tools they need to run a smooth operation. We’re solving problems for 3 distinct customer use cases:
HUBB Kitchens...
👻 Provides “ghost kitchen” services for existing restaurants needing expanded capacity or satellite locations
🚚 Hosts food truck operators & other foodpreneurs
🚀 Offers incubation and startup packages to help early-stage and first-time business owners
We’re taking the proven and time-tested model of co-working and replacing offices with kitchens. We’re also helping local businesses capitalize on a global trend to keep jobs and profits closer to home.
Business Model
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Flexible kitchen rentals + custom service add-ons
HUBB’s main revenue stream is pay-per-use kitchen rentals. We charge by the hour, day, or month, providing flexible membership options based on the amount of time and space needed. Not only does this help keep our offerings highly cost-effective, but it also maximizes the utilization of our space.
In addition to the main kitchen rentals, we generate revenue from 4 additional value-add services:
1️⃣ Parking, prep, and storage space for food trucks
2️⃣ Subscription-based business, operations & regulatory management services
3️⃣ Subscription-based cold, frozen and dry storage services
4️⃣ Yearly membership dues
Traction
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Happy Customers
Our customers have said some pretty nice things about us...
1st Location
At our first location we've achieved several key milestones:
► Profitable within 3 months
► Grew 12% MoM from December 2020 until April 2021
► Currently at 100% capacity
Next Locations
We're in the process of launching the FIRST multi-concept ghost kitchen post-security in an airport terminal in collaboration with REEF Kitchens, opening late May.
Our second commissary kitchen location on East Lenoir Street in Raleigh is finishing up construction.
To push full steam ahead on these new locations, our founder has been full-time at HUBB Kitchens since August 2021, and we’ve added 4 team members.
Competition
Overall the demand for ghost kitchen space is high and we don't anticipate any near-term market saturation. And while there are a few similar concepts, our business model and services present a unique offering.
Investment Summary
Anticipated Terms
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Company is planning to offer an 8.5% equity stake for a raise of $467,550.
Use of Funds
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► $60,000: Open Glenwood location
► $120,000: Glenwood + open location #4 (TBA)
► $200,000: Glenwood + location #4 + open location #5 (TBA)
► $430,000: Property acquisition
Our People
Jason T Johnson,
Founder
Founder
Jason has 16 years of restaurant management experience to efficiently and profitably operate the business. As the Founder and Managing Membe..
Katherine Symanowicz,
Dir. of Marketing
Dir. of Marketing
With a focus in marketing, Katherine creates all content throughout our distribution channels and ensures a consistent company brand across ..
Jide Iruka,
Marketing Strategist
Marketing Strategist
A self-proclaimed foodie, Jide Iruka, a Boston native, enjoys the local food scene and supporting small business by ordering in, or dining o..
Jon Comtois,
Dir. of Operations
Dir. of Operations
A The Chef's Academy scholar, Jon has spent 9+ years in the Food & Hospitality industry. He is big on customer service and likes meeting..
Dekisha Thompson,
Community Manager
Community Manager
Dekisha’s culinary skills began when employed at The cheesecake Factory while obtaining her degree from Norfolk State University. Her pass..
Will McGuire,
Advisor & Investor
Advisor & Investor
Will McGuire is a business advisor and early investor in J. Johnson & Company L.L.C. (aka HUBB Kitchens). He is Founder & CEO of Inc..
G Patel,
Senior Business Advisor
Senior Business Advisor
More than 15 years of dynamic experience across product development, hospitality, education, and mentorship have amplified G's entrepreneuri..
Jason Widen,
Advisor & Investor
Advisor & Investor
Founding Partner of HQ Raleigh which fosters inclusive communities of entrepreneurs through shared workspace creating lasting economic and s..
Incolo,
Business Consultant
Business Consultant
Incolo is on a mission to create a level playing field by helping founders build businesses which have a scaling impact on those around them..
Common Questions
What is your expansion timeline?
The small footprint hourly model is currently being proven with our first location breaking-even within 3 months of operations. Our second location opening late April or early May already has a waiting list for food truck clients. Our plan is to open 2-3 new locations starting 2022 using location 1 & 2 as the proven models. Late 2021 could be the acquisition of RTP real estate to have a home base of operations and also given us the ability to put our current two models under one roof. Over the next two years we will be looking to combine our two proven models into 1 facility to create our goal of "one stop shop".
Who are your target customers?
HUBB Kitchens cultivates culinary entrepreneurs as they formalize and grow their businesses by providing professionally managed, easily accessible, and affordable commercial kitchen space, industry-specific technical assistance and access to market opportunities. Whether a food start up or an experienced small business, HUBB Kitchens provides entrepreneurs the savvy to succeed.
How do you market HUBB Kitchens?
So far, HUBB Kitchens Marketing has been a relatively low-key affair. Via unpaid social media marketing and word-of-mouth advertising, we receive 3 applications a week on average, totaling 142 applications to fill 50 remaining slots. An internship was developed in the Spring of 2021, and a team of 3 Campbell University Business Students assisted in carrying out the marketing activities.
Docs
Risks
Investing carries general risks, such as losing all the money you invest. Some key risks will be listed below. Additional general and project-specific risks may be detailed here if the Regulation Crowdfunding securities offering goes live.
You can learn more about the risks of investing through Vicinity here.
Disclosures
This is not currently a live securities offering.
- No money or other consideration is being solicited, and if sent in response, will not be accepted.
- No offer to buy the securities can be accepted and no part of the purchase price can be received until the offering statement is filed and only through an intermediary's platform.
- A person's indication of interest involves no obligation or commitment of any kind.
"Raleigh ghost kitchen targets expansion amid shifting restaurant scene"
Triangle Business Journal / Read Full Article
"Ghost Kitchen to Open at Raleigh-Durham Airport"
NACS / Read Full Article
Triangle Business Journal / Read Full Article
New Venture Advisors LLC / Read Full Article
WTVD ABD 11 / Read Full Article
"Entrepreneurial groups hope to create program to help Raleigh minority, start-up business owners"
CBS 17 / Read Full Article
Aviation Pros: Your Next Meal at RDU Could Come From the Airport's First Virtual Food Hall
The News and Observer: Ghost Kitchens and COVID Changes: 2022 Triangle Dining Guide
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