REEF to Buy 2ndKitchen Food Delivery Service

REEF, which operates delivery kitchens, logistics and proximity hubs, has bought virtual kitchen company 2ndKitchen, according to a press release emailed to PYMNTS.

2ndKitchen’s services help bars, breweries, hotels and other businesses partner with hyper-local restaurants in order to offer custom food experiences, add new customers and make more money.

The companies’ brands will be combined under the REEF brand.

The two companies purport to be able to expand their customer base and make it so businesses can turn on food service without physical infrastructure and its various costs.

“REEF operates the world’s best and most relevant restaurant brands. It is only natural for us to bring these brands to the world’s best hotels and hospitality venues,” said Tommy Rosen, head of development at REEF. “Our acquisition of 2ndKitchen allows us to seamlessly connect hospitality venues around the world with REEF’s brands and excellent operations. This will set a new service standard and revolutionize the guest experience in the hospitality market.”

2ndKitchen CEO and co-founder Nick Anastasiades said the company’s priority was to connect businesses and help them “efficiently and seamlessly add value to their guests.” The partnership with REEF will help it add more tech to bolster food service.

Earlier this month, REEF came under scrutiny from regulators.

Read more: Ghost Kitchen Boom May Be Built on a Shaky Foundation, Reports Show

In REEF’s home state of Florida, there were health and safety violations found at 58 of the 61 locations inspected. Twenty-one of them were reported to be “high-level safety violations” and two of them were also shut down because there had been sewage spilling on the units’ floors.

Other reports had REEF running its ghost kitchens without the right permits and thus without the safety checks they need.

A REEF spokesperson said REEF “understands the importance of permitting, and we want to be regulated.”