3 Square, a Taiwanese cloud kitchen startup, announced that it has secured $1.2 million in a seed funding round backed by Hanshin Department Store Co Ltd and food technology venture investor Foodland Ventures.
Family offices and angel investors have also participated in the funding round that will finance 3 Square’s growth in Taiwan and prepare for its entry into Southeast Asia and North Asia.
Founded in 2020 by Victor J. Chow, formerly an executive at food delivery platforms honestbee and foodpanda, 3 Square provides tech-enabled, turnkey solutions that are both sustainable and profitable, according to the announcement.
The startup maximizes utilization and revenue per square meter of kitchen spaces to create great tasting food.
“With COVID-19 leading to the closure of restaurants and bars, many restaurant owners are looking for an alternative to the traditional brick and mortar restaurant business model in order to cope with the significant shift in consumer demand from dine-in to delivery, a rapidly changing F&B market, and high overhead costs,” Chow said.
He added that 3 Square “eliminates barriers to growth, reduces risk, and enables partners to grow profitably by providing upgraded cloud kitchen spaces”.
3 Square’s first location is in the center of Taipei City, with 20 restaurant brands available for delivery, takeaway, and dine-in. Its popular partners include new brands from the Michelin-starred MUME Group and 30-year-old night market standout Shi Yuan Taiwanese Fried Chicken.
The virtual kitchen startup also has a virtual restaurant group with six in-house fully branded restaurant concepts available at launch. These menus are developed using big data and trend analysis with culinary design and consumer insights for the best foods that customers crave.
Even with the recent seed funding round, 3 Square said it is preparing for the next round of fundraising to accelerate an expansion of 300 brands in the 3 Square ecosystem across Southeast and North Asia.