Not every restaurant requires a physical dining space. Virtual restaurants, often referred to as ghost kitchens or dark kitchens, operate exclusively online, providing food through delivery services like Uber Eats and DoorDash. This business model experienced significant growth during the pandemic; meal delivery services surged 162% in April 2020 compared to the previous year, according to Bloomberg Second Measure, and continue to expand each year, albeit at a slower, more consistent pace.
In 2014, Jeff Appelbaum was inspired by the kitchen-only concept to establish Salted. The restaurant company focused on offering healthier options for take-out and delivery, with no dine-in facilities available.
By 2020, Appelbaum successfully 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 — serving areas such as Los Angeles, San Francisco, Chicago, and Columbus. Seeing the technology-driven model as the future of restaurants, he sought investment on “Shark Tank” to further grow Salted.
What happened with Salted after appearing on Shark Tank?
Salted featured in 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 version of the business, which had previously focused on online cooking classes and meal kits before pivoting to restaurant delivery services.
Each brand in the Salted collection emphasizes distinct versions of healthier fast food, ranging from gluten-, soy-, and nut-free cauliflower pizza to California-styled Korean bowls and budget-friendly salads. The Sharks sampled some dishes and found them enjoyable, particularly Lori Greiner, who remarked that this type of initiative aligned with her as a target customer.
Salted was backed by venture capital investors. At the time of the show, it reported $1.1 million in sales for the prior year with a $3 million run rate, indicating solid future potential. However, a loss of $750,000 during the filming year raised concerns among the Sharks, particularly since investors had not recouped their investments. All Sharks declined to invest except Greiner; however, Appelbaum’s dismissive conversation led her to withdraw her offer. The company ultimately left without securing a deal, with feedback highlighting market competitiveness and Appelbaum’s chaotic presentation style as factors of concern.
“Salted gained popularity and success after appearing on Shark Tank, leveraging the show’s exposure to reach a wider audience.”
Though Salted did not receive funding from the Sharks, it enjoyed success in the aftermath of the episode. By May 2021, one year post-appearance, the company successfully raised $9 million in seed funding from partners like Kamine Development Corporation, Craft Ventures, Valor Equity Partners, Proof Ventures, and Wonder Ventures. At that stage, the business boasted 17 locations nationwide, with plans for 80 by the following year.
The company’s growth continued with an additional investment in October 2021. During this period, Salted employed 200 individuals, with 19 locations across seven states generating annual sales between $1 million and $2.5 million.
Besides expanding its delivery kitchens, Salted launched its first physical Moonbowls location in Los Angeles in 2021. Founder Jeff Appelbaum had ambitious plans; he explained to QSR magazine that delivery is only one component of the business model, with the long-term vision aimed at developing “multi-channel brands that will endure for 50 years.”
Is Salted still operational as a business?
Salted remains active and manages six distinct restaurant brands, including Hawaiian-inspired Lulubowls, Cauliflower Pizza, Moonbowls, Ginger Bowls, the $5 Salad Company, and Thrive Kitchen. The company operates in cities like Austin, Atlanta, Los Angeles, San Francisco, Chicago, Columbus, Houston, Philadelphia, and New York, with plans to establish 60 locations in 2024.
In October 2023, Salted secured another $14 million in funding. At that time, all individual restaurants were profitable, generating about $1 million in annual sales each. While the parent company is not very active on social media, its Moonbowls brand enjoys nearly 10,000 Instagram followers, featuring special promotions for events like Father’s Day and New Year, alongside updates on delivery services and catering options.
In the autumn of 2023, CEO Jeff Appelbaum aimed to further diversify the business model through the brand’s initial acquisition of a Mediterranean restaurant called Xenia. By November 2023, this new addition presented a menu including pita, crispy falafel, and tzatziki at six Salted locations.
What are the upcoming plans for Salted?
As Salted continues to expand, founder Jeff Appelbaum’s vision for the company continues to evolve. Following the recent round of funding in October 2023, he shared with Techcrunch his goals of having “thousands of locations” in the coming years. Previously, he expressed his ambition to “build the next Chipotle” via Techcrunch.
While the company currently operates solely in the U.S. (spanning 10 states), Appelbaum dreams of international expansion, actively seeking the right locations with a team of real estate partners. On his LinkedIn, he ambitiously describes Salted as “scaling tomorrow’s restaurant brands.”
With its emphasis on rapid technological advancement and the absence of traditional restaurant costs, Salted is well-positioned for future growth — whether that involves entering new markets or developing and acquiring additional restaurant brands. After all, the delivery sector is thriving; as of March 2024, major meal delivery services reported an 8% year-over-year sales increase (per Bloomberg Second Measure).