Fruitas Holdings Inc., the country’s leading food and beverage community store and kiosk operator, acquired Fly Kitchen Inc. of the son of business tycoon George Yang to further expand its cloud kitchen business.
In a disclosure to the Philippine Stock Exchange, Fruitas said the acquisition will allow it to further accelerate the growth of its cloud kitchen business, Nube Kuxina, which it had launched in the third quarter of 2022.
Fly Kitchen is a 3-year cloud kitchen company founded by Kristopher George Yang, president of First Georgetown Ventures, Inc. and Marco Alquiros, who honed his kitchen operations management skills and knowledge in his 10-year stint with the Filipino restaurant chain Giligan’s.
To capitalize on the shift in consumer purchasing trends, Fly Kitchen was founded in 2020 at the height of the COVID-19 pandemic.
The business was able to expand into four strategic kitchen locations in Metro Manila, specifically in Makati City, Pasig City, Mandaluyong City, and Quezon City with a combined cooking area of about 200 square meters and cater to over 10 brands, including Hatid Pinoy, Jade Express, Kanin at Sabaw, and more.
The business has also developed strong connections with third-party food aggregators like Foodpanda and Grabfood.
“By maximizing synergies and integrating its own brands into the present Fly Kitchen ecosystem, the acquisition will enable FRUIT to significantly expand its cloud kitchen business and efficiently serve its customers,” the firm said.
It added that, “FRUIT eyes to market a number of its own food and beverage items such as its Fruitas fresh juices, Ling Nam, Soy & Bean, Sabroso Lechon, and more, via Fly Kitchen.”
Under the agreement, FRUIT will purchase all of the outstanding shares of Fly Kitchen for an undisclosed amount.
Among Fly Kitchen’s key assets are the leasehold interests in the company's four kitchens, all of its inventory and equipment, recipes, and other technical know-how. The transaction was closed on June 1, 2023.
“The purchase of Fly Kitchen fits our strategic objective to remain competitive in the digital arena. The startup complements our present activities and will enable us to accelerate the growth of this new source of revenue and profit for Fruitas,” said FRUIT President and CEO Lester Yu.
He added that, “We are optimistic about the future of Fly Kitchen because many Filipinos have changed their eating habits. This will enable us to continue to reorient our company and strengthen our visibility online.”