The Food Corridoris aSaaS-based Marketplace connecting small food businesses with commercial kitchen spaces — enabling efficiency, growth, and innovation in Local Foods. Food entrepreneurs (e.g., food trucks, small catering companies, small retail startups, etc.) are required by state and local laws to prepare their inventory in a commercial kitchen to comply with state and municipal health codes. But many entrepreneurs don’t have access to commercial kitchens so they take risks and violate laws by cooking in unlicensed kitchens. Fortunately there is a market of commercial kitchens that are specifically designed to fill this need, and there is a market of commercial kitchens that are idle anywhere between 50% to 80% of the time. When these commercial assets are idle, the operator is not leveraging their full potential. So to create the market, The Food Corridor helps connect food entrepreneurs with commercial kitchens so everyone can comply with state and local laws, reduce risk and optimize the profitability of their assets.
The company has a monthly recurring revenue model, providing flexibility for large and smaller kitchen spaces. For large kitchens, The Food Corridor charges $159/mo. and a 4% transaction fee, and for smaller kitchens; its only $5/mo., but with a 16% transaction fee. The Food Corridor has seen impressive traction with 23% MOM growth over the last 12 months, 850+ food companies, and 53 kitchens on their platform. To date, they’ve transacted over $1.7M in bookings on the platform.
The Food Corridor has also developed the Network for Incubator & Commissary Kitchens, the “NICK,” a private Facebook Group that supports the food industry through “sharing data, best practices, and technical assistance to build and grow successful shared-use kitchen businesses.”The group has 800+ members, 90% are based in the US and 6% are in Canada. TFC has plans to register the online community will evolve as a non-profit industry trade association, which will feed commercial kitchens and food entrepreneurs into their SaaS platform.
The team is led by Founder and CEO Dr. Ashley Colpaart, a Ph.D. in Food Science and Food Safety from CSU in Fort Collins. Ashley has over a decade of experience in nutrition, dietetic policy, and food safety, as a research analyst and policy consultant, during which time she also earned an M.S. in Food Policy and Applied Nutrition. She is one of the leading minds on Shared Kitchen Space in the US, and the access-economy in the food industry.
Due Diligence Materials
- The Food Corridor Due Diligence Report – Published 10/06/2017
- The Food Corridor Investor Pitch Deck– 09/2017
- The Food Corridor Pitch Video – Recorded at the RVC Summer PitchFest 08/08/2017
- Lead Investor Customer Interviews Summary & Transcripts– Aggregated by the RVC Co-Lead Investors
- Lead Investor Technical Due Diligence Summary– Aggregated by Co-Lead, Larry Salmen
- Due Diligence Key Risks Summary– 09/23/2017, Captured at the RVC Due Diligence Rally
- The Food Corridor Investor Showcase Discussion Notes– 10/04/2017, Captured at TFC Investor Showcase in Fort Collins
- The Food Corridor Preferred Equity Term Sheet– Preferred Equity raise of $800k, $3M Pre-Money
- The Food Corridor – Full Due Diligence Data Room
- $800,000 Preferred Equity round
- $3M Pre-Money Valuation
- Target Initial Close Date: October 16, 2017
- Use of Funds:Add additional revenue generating features to The Food Corridor platform, grow from 50 to 125 kitchens over the next year, Marketing Expenses, and Hiring of Key Personnel