HUBB Kitchens
Regulation Crowdfunding

Raising up to $467,550


for 8.5% Equity Stake


Suggested Min. Investment: $1,000 

$146,100


Funded
Start date: October 3, 2022
End date: December 31, 2022
Why fund our local story

  • The first ever multi-concept ghost kitchen in an airport, a collaboration between HUBB Kitchens, RDU International, and Reef Kitchens, opened July 2nd, 2022
  • As of July 2022 HUBB Kitchens has collected over 700 membership applications and inquiries from numerous airports about our “get REEF” virtual food halls.
  • HUBB Kitchens is projecting 5 locations by the end of 2022, our third location opening this month on East Lenoir Street.
  • 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 August 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

____


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

____


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

____


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

____


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

____


Happy Customers  

Our customers have said some pretty nice things about us... 






The small footprint hourly model is currently being proven with our first location breaking-even within 3 months of operations. Our second location that opened late August 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 2022 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"


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


____


Company is planning to offer an 8.5% equity stake for a raise of $467,550.


Use of Funds

____


► $200,000: Team 

► $80,000: Equipment purchases 

► $50,000 : Dulles Airport design

► $45,000: Airport advisory 

► $35,000: Property acquisition


Due Diligence


____





Form check completed! Click here to review.

 


What is it? 


A review of disclosures, financials, and all filing information to ensure compliance and consistency with Rule 201 of Regulation CF.

Our People
Jason T Johnson,
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
With a focus in marketing, Katherine creates all content throughout our distribution channels and ensures a consistent company brand across ..
Jide Iruka,
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
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
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
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
More than 15 years of dynamic experience across product development, hospitality, education, and mentorship have amplified G's entrepreneuri..
Jason Widen,
Advisor & Investor
Founding Partner of HQ Raleigh which fosters inclusive communities of entrepreneurs through shared workspace creating lasting economic and s..
Incolo,
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 2022 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

Key Personnel. The Project is highly dependent on Jason Johnson to oversee ongoing operations. His loss would adversely affect the company and the company might have to obtain other personnel to perform his duties. There can be no guarantee such replacement personnel will be available or that the company will proceed as planned in the event of the loss.



Need for Additional Funding/Dilution. The project will need additional capital in excess of the $50,000 minimum being raised through this Regulation Crowdfunding offering. If the needed amount of capital is not achieved through this Regulation Crowdfunding offering, it will need to be pursued through other raises/sources, such as a separate exempt offering or additional debt (see other risks related to debt) or funded by potential business profits.


No Distributions/No Provision for Return of Capital. It is anticipated that the Company’s investors will not receive a substantial return on their invested capital until several or more years after closing of the Offering. 


Revenue Share Payments Have Better Economic Rights. The Revenue Share holders are entitled to receive a portion of revenue on a quarterly basis whether or not equity holders are returned any Capital Contributions.

Your investment is in a special purpose vehicle and you are not a direct owner of the Company. The Company has formed a special purpose vehicle, the SPV Company, for Investors in this offering.  You are not a direct owner of the Company, but rather you will be an indirect owner of the Company.

The Class C Units held by the SPV Company are nonvoting. The SPV Company, and thus you, have no voting rights on any Company matter.  The Company is entirely controlled by its Managers and the Class A Unitholders.  Currently, the Manager and the Class A Member is Jason Johnson.


Please refer to the Form C for additional risks and disclosures.

Disclosures


  • J. Johnson & Company L.L.C. has filed a Form C with the SEC which can be found here.
  • Vicinity will be compensated upon a successful raise at 6% of the total amount raised, plus 2% of the amount raised in the form of the securities offered to the public.
  • There is no cost for investors to invest, though Vicinity will receive a 1% transaction fee on all payments from J. Johnson & Company L.L.C. to investors that will be withheld from the payment to investors.

Investor Update

Ribbon cutting of Virtual Food Hall at RDU!

Jason Johnson on August 24 Issuer


REEF Launches First Ever “Virtual Food Hall” at Raleigh-Durham International Airport

Business wire / Read Full Article

Local Limelight with HUBB Kitchen's Jason Johnson

Axios Raleigh / Read Full Article

Ghost kitchen opens at RDU, feeding travelers without the lines

WRAL / Read Full Article

At RDU airport: Nine new restaurants, one kitchen and no tables or chairs

The News & ObserverRead Full Article

"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

Coworks: Hot desks to hot stoves: coworking and kitchens

Forum