Asda had made an equity investment in digital foodservice startup Lean Kitchen Network (LKN) as part of wider moves to establish partnerships to repurpose excess space in its large superstore outlets.
The retailer has invested in LKN alongside hospitality expert investor Edition Capital, preceding a larger Series A round of funding in the firm later this year.
Asda will partner with LKN, whose own brands include virtual burger chain Twisted, to trial tech-driven food-for-now counters, initially in four of its stores in London (Park Royal, Colindale, Bexley and Edmonton). Customers will be able to order food at LKN’s touch-screen kiosk or on their mobile phone by scanning a QR code. They then wait for it to be made in the store’s kitchen or collect their order at the end of their shop. The counters will also offer orders for delivery via Uber Eats.
LKN will be part of the development of several “foodservice firsts” at the four stores, including a Doritos ‘nacho bar’ and Heinz breakfast offer.
The move follows the launch of the ‘House of Yum’ café concept at the Asda store in Clapham, London, last December, where customers use a QR code to order or place an order for delivery via Uber Eats.
House of Yum is part of the supermarket’s ‘test and learn’ partnership strategy, which sees it work with category experts and popular brands to broaden the destination appeal of its stores. Asda has already partnered with the likes of Greggs, B&Q and The Entertainer.
Meanwhile, Asda said it was also backing LKN, which works with brands such as PepsiCo, Heinz and Doritos, to target further growth in the hospitality sector by partnering with large hotel operators, restaurants and pub chains. This includes turning under-utilised kitchen space into ‘on-trend’ eateries to improve on-site dining options and drive incremental sales through on-demand food delivery.
“Asda’s partnerships strategy is anchored around collaborating with innovative businesses like Lean Kitchen Network to bring new products and services to customers,” said Preyash Thakrar, Asda’s Chief Strategy Officer.
“Investing in the business is the natural next step in our relationship and we look forward to working with them as they drive positive change in the food-for-now market, leading to greater choice and improved quality for consumers.”
Faraz Nagree, CEO and Founder of Lean Kitchen Network, added: “Our partnership with Asda represents a big step forward in our ability to provide high quality, affordable and exciting meals to our customers across the UK.
“Their unparalleled expertise and buying scale combined with our digital and food development capabilities will be truly disruptive for food-for-now and delivery as we grow at pace.”
NAM Implications:
- Asda has always had larger than average store space.
- It follows that they would be into optimising new excess (because of Online impact?)
- i.e. or any traffic builder on a combination of rent and % share of gross profits…
