PlantX (VEGA.C) announced today that it has entered into a partnership to open a new PlantX branded “ghost kitchen” in Los Angeles, California. The PlantX ghost kitchen marks the initial step in the Company’s plan to launch and implement its PlantX delivery services across the US.
“We’ve seen a clear upwards trend in the popularity of meal delivery services in the last few years and it is crucial to tailor our operations in a way that can efficiently meet the increased demand…The new kitchen is a great opportunity for PlantX to adopt the increasingly popular ghost kitchen model. It is also in line with our aim to reach our customers in the most innovative and meaningful ways possible,” said PlantX Founder, Sean Dollinger.
For context, a “ghost kitchen” refers to a cooking facility that is used exclusively to produce and deliver meals. PlantX’s new ghost kitchen is 2,200 square feet and was opened in collaboration with MK Cuisine Global (MKC). Following the acquisition of MKC’s plant-based deli, PlantX and MKC have been working together closely to develop initiatives and improve operations. PlantX’s latest facility houses state-of-the-art cooking equipment and will use high-quality, locally-sourced produce for its meals, which will be delivered using 100% biodegradable packaging. Furthermore, PlantX intends to use a no-waste program to ensure all leftover perishable ingredients will be repurposed and used in MKC’s restaurants.
PlantX has been publishing press releases left and right lately. From indoor plants to meal delivery, the Company appears to be spreading its roots throughout multiple plant-based sectors. With this in mind, PlantX’s latest decision to enter the US meal delivery service market is a good one. According to Research and Markets, the global online food delivery services market is expected to reach USD$254 billion in 2028, growing at an impressive compound annual growth rate (CAGR) of 10.9%. It goes without saying that COVID-19 served as a catalyst for the explosion of the delivery market as a whole. In particular, the US was ranked as the second-largest food delivery market in the world, estimated at USD$28.5 billion.
“We are excited to transform the space into a PlantX creation kitchen…The large, open format allows for easy communication and collaboration between our team members, and the central location is ideal for combining the greatest minds in culinary Los Angeles,” said PlantX Chief Culinary Officer, Chef Matthew Kenney.
Honestly speaking, I find it both impressive and worrisome that PlantX is targeting so many different markets. With seemingly countless partnerships and agreements, its hard to say how much of an impact this has had on the Company’s finances. However, PlantX’s achieved new record monthly gross revenues of $42,042,450 for the month of April 2021, suggesting that the Company is doing quite well.
PlantX’s share price opened at $0.54, up from a previous close of $0.50. The Company’s shares are up 4.00% and are currently trading at $0.52 as of 12:18PM ET. This indicates that there has been some change following the news.