Collection: Savings
Setting the Scene
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Over the last decade, some of the fastest growing brands have captured digital consumers without owning physical assets.
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Here are some examples:
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Uber is the world’s largest taxi business without owning taxis.
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Instacart is the world’s largest supermarket without owning stores.
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Airbnb is the world’s largest hotel business without owning hotels.
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This week’s company is building the largest fast food chain without owning any real estate, employing any line cooks, or purchasing any inventory.
In a Sentence
Popchew is a digitally native fast food chain that leverages pop-culture and existing restaurants to fulfill its orders.
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Digitally native: Popchew monetizes through an asset light model where they can scale globally without investing in real estate, food, or labor, serving customers solely through food delivery platforms.
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Pop-culture: Popchew partners with iconic brands and celebrities to build its customer base, then engages them through gaming, content, and rewards.
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Restaurants: Popchew adds to the revenue stream of established restaurants, providing recipes, a supply chain, and technology, but leaving the prep to their partners.
Bulleted Version
- Popchew is building the world’s next big fast food chain with pixels instead of bricks. 👾
The Basics:
- Headquarters: New York City 🍎
- Employee Count: 10
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Investors:
Long Journey Ventures, WndrCo, Flybridge, Unanimous Capital, Anti Fund (Jake Paul), Vinyl Capital, Magic Fund, Scott Banister, Ryan Moore, Rich Antoniello, Anthony Pompliano
- Funding amount: $7M
- Currently raising: Series A
- Business model: 40% take rate per kitchen sales
- Early traction: $2.51M revenue run rate ($7.52M GMV), 93 active kitchens, sold more than 320,000 meals, partnerships with Doritos, PepsiCo, and celebrities like Trippie Redd
Due Diligence
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🛒 Market and consumer sentiment: Popchew is positioned to capitalize on the rapidly growing $26.1B US food delivery market expected to double in the next 5 years.
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Additionally, behavior among Gen-Z and millennials is shifting towards convenience and ordering in.
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👩💻 Adding revenue to restaurants: Popchew's business model significantly benefits partner kitchens, offering the average restaurant an extra $92k a year.
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⭐️ Playing into pop-culture: Popchew has incorporated drops, mini-games, content, prizes, collectibles, competition, and more to build trust, brand affinity, and create an emotional connection with customers.
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Popchew also collaborates with renowned brands and celebrities to enhance brand appeal, setting it apart in the competitive food delivery market.
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🙄 Failure of past models: Notably, Virtual Dining Concept’s Mr Beast Burgers, exploded to $100M in revenue and then shut down due to quality control issues and lawsuits.
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Despite Popchew's emphasis on quality control software and its consumer facing brand, continuous monitoring is essential to avoid similar pitfalls.
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😳 The health-conscious consumer: Popchew’s fast-food-centric menu might clash with the health-conscious tendencies of its Gen Z target audience.
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📈 Buying into the brand: Popchew faces the challenge of swaying users to buy into its brand and initiatives over other established and well recognized brands.
Founder Profile
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Nick Sopchak, CEO: Previously on the founding teams of Super Order, Hoist, and Pilotworks.
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Rushir Parikh, CSO: Experience in product management at Fetch, Shipt, and Bellhop
Comps
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Superorder: Backed by Y Combinator, BBQ Capital, Slow Ventures, Foundation Capital, and others.
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C3: Backed by Brookfield Asset Management, REEF, Triartisan Capital Advisors, Lurra Capital, and others.
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Nextbite: Backed by Techstars, TenOneTen Ventures, Nosara Capital, Foundry Group, SoftBank Vision Fund
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Virtual Dining Concepts: Backed by Spice Private Equity and others.
Why Popchew
Popchew is poised to redefine the fast-food landscape with its innovative, asset-light model and customer-obsessed approach, perfectly positioned to take a bite out of legacy restaurant franchises. 😋
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