Not every restaurant requires an actual physical setting for dining. Virtual restaurants, sometimes referred to as ghost kitchens or dark kitchens, cannot be visited in person as they exist solely in the digital realm, providing food through delivery services like Uber Eats or DoorDash. This business model experienced substantial growth during the pandemic; meal delivery services surged by 162% in April 2020 compared to the previous year, according to Bloomberg Second Measure, and the trend continues to rise annually, albeit at a more gradual pace.
In 2014, the concept of kitchens without a dining area motivated entrepreneur Jeff Appelbaum to establish Salted. This umbrella restaurant company aimed to deliver healthier options for takeout and delivery, with no dine-in facilities available.
By 2020, Appelbaum had expanded the business to include six restaurant brands: Cauliflower Pizza, Moonbowls Korean Cuisine, Ginger Bowl Chinese Cuisine, the $5 Salad Company, F/ck Gluten, and the keto-friendly Thrive Kitchen, with operations in Los Angeles, San Francisco, Chicago, and Columbus. Believing that this technology-oriented model would define the future of restaurants, he turned to “Shark Tank” in search of investment to broaden Salted’s reach.
What happened to Salted after Shark Tank?
Salted made its pitch on season 11, episode 23 of “Shark Tank,” seeking a $500,000 investment for a 5% equity stake. Founder Jeff Appelbaum shared that this was the third phase of the business, which previously centered on online cooking classes and meal kit services before transitioning to restaurant delivery.
The various brands under Salted aimed to provide healthier fast food alternatives, ranging from gluten-, soy-, and nut-free cauliflower pizza to California-inspired Korean bowls and budget-friendly salads. The Sharks sampled the dishes and were impressed, especially Lori Greiner, who felt this kind of venture was ideal for her as a target consumer.
Salted was backed by venture capital firms and had achieved $1.1 million in sales during the year of its appearance, boasting a $3 million run rate, which indicated promising growth potential. However, the company also incurred a $750,000 loss that same year, raising concerns among the Sharks, particularly as investors had yet to see any returns. All Sharks opted out except for Greiner, but Appelbaum’s failure to listen and engage with her led her to withdraw her interest. Ultimately, the company left without securing a deal, citing market competition, Appelbaum’s lack of an SEO strategy, and his high-energy demeanor as factors that unsettled the Sharks.
“Salted gained popularity after their Shark Tank appearance, boosting brand awareness and sales significantly.”
Although Salted didn’t receive an investment from the Sharks, the company experienced significant success following the broadcast. In May 2021, one year after the episode aired, Salted secured $9 million in seed funding from investors including Kamine Development Corporation, Craft Ventures, Valor Equity Partners, Proof Ventures, and Wonder Ventures. By that time, the business operated 17 locations nationwide, with ambitious plans to expand to 80 locations within the following year.
The company continued to flourish with additional funding in October 2021. At this stage, Salted employed 200 team members across 19 active locations in seven states, generating annual sales ranging from $1 million to $2.5 million.
In line with its growth, Salted launched its first physical Moonbowls storefront in Los Angeles in 2021. Founder Jeff Appelbaum expressed a strong vision for the business; he revealed to QSR magazine that delivery is merely one element of their strategy, with the long-term goal being to develop “multi-channel brands that will endure for 50 years.”
Is Salted still operational?
Salted remains in operation, with six distinct restaurant brands, including the Hawaiian-themed Lulubowls, alongside Cauliflower Pizza, Moonbowls, Ginger Bowls, the $5 Salad Company, and Thrive Kitchen. Currently, the company has locations in Austin, Atlanta, Los Angeles, San Francisco, Chicago, Columbus, Houston, Philadelphia, and New York, with plans to expand to 60 locations by 2024.
In October 2023, Salted secured an additional $14 million in funding. At that time, each individual restaurant was profitable, generating approximately $1 million in annual sales. Although the parent company itself is not active on social media, its Moonbowls brand boasts nearly 10,000 followers on Instagram, where it promotes special offers for events like Father’s Day and New Year, along with its delivery and event catering services.
In the latter part of 2023, CEO Jeff Appelbaum outlined plans to further diversify and expand the business model through the brand’s first acquisition, a Mediterranean restaurant named Xenia. By November 2023, this newly acquired restaurant was serving items such as pita, crispy falafel, and tzatziki across six Salted locations.
What are Salted’s future plans and direction?
As Salted continues to expand, so do founder Jeff Appelbaum’s aspirations for the company’s future. Following the latest funding round in October 2023, the entrepreneur shared with Techcrunch his ambition to establish “thousands of locations” in the upcoming years. He had earlier expressed the goal of “building the next Chipotle” (via Techcrunch).
Currently operating solely in the U.S. (across 10 states), Appelbaum dreams of extending the brand internationally, with a team of real estate partners actively seeking viable locations. On his LinkedIn profile, he boldly refers to Salted as “scaling tomorrow’s restaurant brands.”
With its emphasis on fast-paced technology and the absence of traditional restaurant overhead costs, Salted is poised for various growth opportunities in the future — whether through geographical expansion or the development and acquisition of additional restaurant brands. The delivery model remains vibrant; as of March 2024, major meal delivery services experienced a collective 8% year-over-year sales increase (according to Bloomberg Second Measure).