Just Kitchen Holdings (TSXV: JK) this morning announced that it has opened its fourteenth satellite kitchen within Taiwan. The company concurrently announced that it has seen a second hub kitchen recently begin operations as well.
The announcement this morning relates to the firms “hub and spoke” operational model for ghost kitchens. The company conducts initial prep on food at hub locations in low-cost manufacturing centres, before shipping the partially finished goods to more localized satellite kitchens located within more populous city centres for final prep before delivery.
The opening of the 14th spoke, or satellite kitchen, enables the company further access to individuals within the city of Taipei, Taiwan, with the expansion opening up access to over 275,000 potential new clients within the region. The company outlines that it anticipates annual gross revenue of roughly $1.4 million from each satellite kitchen, however numbers as of late appear to have come up slightly short.
The second hub meanwhile that has now become operational consists of 15,000 square feet of commercial kitchen space, located within a food manufacturing plant owned by Chi Mei Frozen Foods. The expansion is expected to support 20-25 satellite kitchens.
JustKitchen is set to commence trading this morning on the TSX Venture.
Information for this briefing was found via Sedar, and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
