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WoodSpoon Raises $14M to Expand its Home Chef Marketplace

WoodSpoon, the New York City-based online marketplace where home chefs can make their food available for ordering and on-demand delivery, announced today that it has raised a $14 million Series A round of funding. Restaurant Brands International (RBI) led the round with participation from World Trade Ventures, Victor Lazarte and other individual investors. This brings the total amount of funding raised by WoodSpoon to $16 million.

WoodSpoon is part of a slowly but steadily rising movement of startups such as DishDivvy and Shef that enable home cooks to sell their wares online. WoodSpoon vets potential home cooks for safety, sanitation and food quality before admitting them on to the platform. Once a chef is onboarded, WoodSpoon takes care of the logistics like insurance and delivery, and even helps with things like food photos and videos to better tell chefs’ stories. WoodSpoon currently operates in Manhattan, Brooklyn and Queens in New York City, where users download the WoodSpoon app or visit the website, order a meal and have it delivered in 30 to 40 minutes.

Oren Saar, Co-Founder and CEO of WoodSpoon told me during a video chat last week that the company currently has 150 active home chefs on its platform (“active” means they’ve cooked meals for sale two times in the past month). Saar also said that 35 percent of customers who buy their first meal on WoodSpoon buy an additional three meals on the service within 17 days.

Selling home-cooked meals is still very much a new idea, and regulations are still being worked out on a state-by-state basis. Because of this, Saar said that WoodSpoon puts a lot of effort into educating potential customers about the idea of buying your neighbor’s home cooked meals. Part of that process, Saar said, was putting the chefs front and center, highlighting the home cooks themselves and the kitchens where meals are made. “You can read everything about the chef making your food,” Saar said, “That should reduce the automatic bias.”

WoodSpoon’s funding is the second big raise we’ve seen from a home cook marketplace this summer, as Shef raised $20 million in June. Shef is a little different from WoodSpoon however, as Shef isn’t on-demand. It delivers prepared meals cold that are then heated up by the customer.

With its new capital, Saar said that WoodSpoon will expand to cover all of New York City before moving on to be in up to 15 different markets across the U.S. Worth noting about this funding round is that it’s led by RBI, which owns the famous QSR brands Burger King, Popeye’s and Tim Horton’s. RBI’s involvement could possibly help accelerate regulatory clarity and acceptance of legalized home cooking across the country, and perhaps it could even help create mini home cook moguls go from neighborhood business to national brand.

Homemade Food Delivery Service WoodSpoon Raises $2M

WoodSpoon, an NYC-based service that delivers meals made by home chefs, announced today it has raised $2 million in seed funding. The round was led by World Trade Ventures with participation from Silvertech Ventures. 

According to a press release sent to The Spoon, the funding round will help WoodSpoon expand both in the New York area and into other states in the future. The company’s platform connects home chefs — both professionals and hobbyists — with local customers who can purchase available meals in their area via a mobile app. WoodSpoon, which launched this year, says it now has about 100 chefs on its platform, including those who have worked at Nobu, Cipriani, The Modern, and other notable restaurants. 

The legality of meal services for home chefs varies from state to state in the U.S., largely due to safety concerns. Speaking to the safety issue, WoodSpoon CEO and cofounder Oren Saar told me earlier this year that his company conducts a rigorous vetting process that includes interviews, evaluation of the food itself, and kitchen inspections. All chefs also have to be in compliance with NYC’s regulations and permit requirements, which vary depending on the type of food the chef plans to make from their home. Saar said many of WoodSpoon’s chefs, which include a number of individuals out of work because of the pandemic, will often use their own commercial facilities to fulfill orders.

The business for homemade delivery meals isn’t widespread in the U.S. yet, for the aforementioned legality issues. California is another state where it’s possible to make money as a home chef. To that end, a company called Shef, based in the San Francisco area, also recently raised a seed round of funding. 

Back east, WoodSpoon is currently available in Manhattan, Brooklyn, Long Island City, Hoboken, and Jersey City. The service will soon expand to Queens and The Bronx.

Home Food Marketplace Shef Raises $8.8M Seed Round

Homemade food marketplace Shef announced today it has raised $8.8 million in seed funding. The round included participation from Y Combinator, Craft Ventures, and M13 with participation from founders and executives from Instacart, TaskRabbit, StubHub, AngelList, Lyft, Airbnb, and Yelp.

Shef says that right now, it is focused on expanding its service, which is available in various regions around the U.S., to provide opportunities for chefs and other restaurant workers that are indefinitely out of a job because of COVID-19 and independent restaurant shutdowns. “Our mission has always been to help immigrants and refugees make a meaningful income. We’ve now expanded that mission to include feeding frontline healthcare workers and putting laid-off restaurant cooks back to work,” Shef cofounder Alvin Salehi said in a statement.

Salehi, a former White House tech advisor, and food entrepreneur Joey Grassia founded the service in 2018.

Via the Shef website, home chefs can post menus as well as designate which days of the week meals are available for delivery. All “shefs” undergo an application process as well as food safety certification training. 

Shef said in today’s press release that it has about 4,000 applicants on its waitlist at the moment, and that the popularity of the service has “skyrocketed” since the start of the pandemic.

Meal-sharing marketplaces are a relatively new concept in the U.S., where they’ve only recently become legal. In California, where Shef is based, AB626 was signed into law in 2018. Glendale, CA-based DishDivvy offers a similar service via its mobile app, and NYC-based WoodSpoon has a marketplace connecting home chefs with consumers on the East Coast.

However, in other states, the practice of selling meals out of your own kitchen remains illegal, which makes these services spotty in terms of availability. Whether the shutdown of many restaurant dining rooms and the accompanying loss of jobs changes that remains to be seen.

WoodSpoon’s Soon-to-Launch Service Aims to Bring Home-cooked Food Delivery To NYC

Someone else’s kitchen could be the next place cooking up your food delivery order thanks to a soon-to-launch service called WoodSpoon. Set to begin service on September 16 in NYC, the service is an on-demand delivery marketplace for homemade meals as well as a platform for local cooks.

WoodSpoon CEO and co-founder Oren Saar, who moved to the U.S. from Israel to do a Masters degree at MIT four years ago, got the idea for WoodSpoon in 2016 after a roommate said he preferred Saar’s cooking to any option he might find on Grubhub, Caviar, or other food delivery services. Speaking over the phone this week, Saar told me he had a “white light” moment then as he realized there could be serious demand for people wanting to order homemade meals from local cooks.

He’d be the first to say the idea wasn’t completely original — plenty of companies have tried over the last several years to launch delivery businesses for home-cooked food, including Danny Meyer’s Umi Kitchen, HomeFood in the UK, and FoodByUs in Australia. Saar says he reached out to these and others to better understand the business he was trying to break into: what worked, what didn’t, why these companies eventually shuttered or pivoted towards other directions, and how he, along with his WoodSpoon cofounder and company CMO Merav Kalish Rozengarten, could do things slightly different. “We really based our entire product on the experience that others had before us,” says Saar.

The WoodSpoon platform is made up of two different apps, both developed in-house and available on iOS and Android platforms. The customer-facing app functions like most food order and delivery apps out there: users search for meals, order, and pay within the app. What’s available in terms of food depends on which cooks in the area are working at that moment, which means options for users change on a daily basis.

Currently, WoodSpoon has 30 cooks signed up to its platform, a mix of professional chefs with culinary degrees those who hold other jobs but enjoy cooking for others in their off hours. Saar himself is one of the the latter.

To find cooks, WoodSpoon relies on both those who apply directly to the company and channels like Instagram. “We’re looking for people that have really good rankings with good reviews,” says Saar. Anyone is welcome to apply; all are carefully vetted through a rigorous process that includes interviews, an evaluation of the food itself, and a kitchen inspection to ensure cooks are properly equipped and licensed to meet restaurant safety standards in New York. With legalities around home-kitchen food businesses in NYC somewhat nebulous, many of WoodSpoon’s cooks actually use their own commercial kitchen facilities to make the food.

Cooks manage all orders via a separate app and can decide to accept or pass on an order much the way an Uber driver takes passengers. Once an order is accepted, an onscreen timer tells the cook how much time they have to complete the order and package it up. (WoodSpoon provides packaging materials.) As that’s happening, the system talks to a delivery person (right now, WoodSpoon contracts its own drivers), who will know when to arrive at the cook’s space to retrieve the order and take it to the customer. Cooks set the price of each dish as well as the delivery fee, and WoodSpoon takes a commission on each order.

According to Saar, the hope is that users develop an affinity for a certain cook or type of food and re-order with the same loyalty they might have for a favorite local restaurant. “Our entire mission is to empower local cooks to share their food with others,” he says. “Once you get to the know them, you [will] want their food.”

The home-chef-as-a-business model may not be new, but it is only just starting to gain traction here in the U.S. Even in a densely populated metropolis like NYC, WoodSpoon won’t face a ton of competition when it launches in a few weeks. How quickly the concept catches on will depend on each state’s individual regulations around selling home-made food commercially. California, for example, green-lighted a home food bill in 2018, but in other states the practice is still illegal.

To start, WoodSpoon will be available in Manhattan’s East Village and West Village neighborhoods, with expansions planned for the near future, both within NYC and to other parts of the country.