REEF, the largest operator of delivery kitchens, logistics, and proximity hubs in North America, and the Americana Group (Americana), the largest Food & Beverage operator in the Middle East, will open cloud kitchens throughout the Middle East and North Africa region, official sources have said.
The two companies said they have entered into a joint venture for the purpose, and that the cloud kitchens they plan to open and operate will belong to not just REEF and Americana but third parties as well.
Cloud kitchens are kitchens built only for delivery orders, pioneered in the biggest US cities before they spread across the world.
The GCC has warmed up to the concept especially during the Covid-19 pandemic, when lockdowns led to the widespread proliferation of food delivery.
In 2020, Mubadala Capital, a wholly owned asset management subsidiary of Mubadala Investment Company, led a $700-million funding round into REEF, along with SoftBank, Oaktree Capital Management, UBS Asset Management and Target Global.
In November 2021, REEF acquired UAE-based cloud kitchen company iKcon Restaurant LLC, marking the Miami-based firm’s first major transaction in the region.
REEF reportedly has, to date, partnered with a number of international brands to bring its cloud kitchens concept to local neighborhoods.
These include MrBeast Burger in Dubai and Another Wing, which REEF globally launched in partnership with DJ Khaled, simultaneously opening 165 locations in three continents.
Meanwhile, the Americana Group owns exclusive franchise rights for the management and operation of over 1,950 restaurants representing food & beverage brands that include KFC, Pizza Hut, Hardee’s, Krispy Kreme, Wimpy, and TGI Fridays in 13 markets across the Middle East, North Africa, and CIS.
Ramez Shehadi, President of International and Chief Growth Officer at REEF, was quoted by the official sources as saying: “We look forward to growing this relationship and replicating it across many priority markets in the near future.”
“Food tech is an exciting space and offers vast opportunities to grow our customer base,” said Amarpal Sandhu, CEO of Americana Restaurants.
“As technology and ordering trends continue to evolve, we believe this collaboration will bring mutual synergies and benefit in the long run,” he added.