BiteLabs and the rise of ghost kitchens

The company has several locations in Mexico and Peru, including some storefronts for retail sales.

One of the phenomena brought about by the pandemic was the growth of "ghost kitchens," or "dark kitchens," which are sites where food is prepared solely for delivery through apps, without the need for restaurant service.

In 2021, Pedro Neira founded a multi-brand restaurant platform that introduces virtual brands backed by chefs to the market through various delivery channels and its app. The company has several locations in Mexico and Peru, including some storefronts for retail sales.

On the other hand, Hungry House, founded in the same year, has been a pioneer in working with renowned chefs and culinary talents, offering a platform for the creation and execution of exclusive dishes for delivery and pickup at its Manhattan and Brooklyn locations. Additionally, the company offers a robust catering program driven by menus from these creators.

Both companies have decided to merge, creating BiteLabs, which will allow them to expand chef-inspired and digitally-oriented brands through 13 locations in the United States, Mexico, and Peru.

The merger results in an entity with combined annual revenues of over $6 million, focusing on continued growth in retail in-store verticals, first and third-party delivery with Uber Eats, Grubhub, DoorDash, and Rappi in Latin America.

"We are companies that have been working on the multi-brand and fast-casual business model for the past few years," said Pedro Neira, CEO of MegaBite and BiteLabs.

The agreement creates an expansion opportunity as Hungry House brings B2B catering expertise, while MegaBite brings data-driven food delivery optimization expertise through its channels.

Both companies will continue to operate as vertically integrated players "to maintain mutually high levels of food quality and hospitality that are fundamental to the BiteLabs brand," Pedro comments.

The synergy between the two companies played a key role in the merger, including the need to offer high-quality food.

Since its inception, Hungry House has worked with chefs who have leveraged social media, offering the opportunity to help expand their culinary creations to new audiences and execute operations on their behalf without the fixed costs of opening their own physical locations.

Together, the companies will cross-promote their brands to offer consumers greater variety in different markets.

Additionally, the merger also brings together a combined set of talents in senior management, including Neira, Corrigan, and Solamon Cruz Estin, co-founder of Hungry House and now Chief Growth Officer of BiteLabs.

The growth and expansion of Hungry House and MegaBite, as well as the current merger, have been facilitated by Wilshire Lane Capital, Carao Ventures, SNR VC, McK Hospitality, Alaya Capital, Amarena VC, and other independent investors.

BiteLabs aims not to build in the ghost kitchen space but to expand through a multi-brand, retail, and multi-channel approach, similar to that of Wonder, which recently secured an additional $100 million in funding from Nestlé.