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Wonder plans 100-plus Texas sites, user restaurants as Lore eyes IPO
CNBC reports Marc Lore's food startup Wonder, valued at $9 billion pre-money in its Series D, is expanding in Texas, launching a $10-a-month restaurant-creation program and preparing for a possible IPO.
Food startup Wonder, founded by Marc Lore in 2018, is preparing a Texas expansion, a subscription for user-built restaurants and a possible initial public offering, CNBC reported Sunday1.
The company has raised $3.3 billion from investors including DoorDash, Alphabet's venture arm GV and Gwyneth Paltrow, CNBC said, citing a Series D this year that set a $9 billion pre-money valuation1. Wonder operates food hall-style locations where diners order takeout or delivery through its app or third-party platforms, including Grubhub, which it owns1.
Lore told CNBC Wonder is a vertically integrated food technology platform aimed at making food more accessible, including in suburban and rural areas, and at prices below delivered groceries1. Customers ordering through Wonder's app do not pay delivery fees, the report said, and menu prices are not marked up to cover delivery commissions1.
About 170 Wonder storefronts have opened over three years from Virginia to Massachusetts, CNBC reported1. The company plans to enter Texas next year with a goal of at least 100 locations in the state by the end of 20271. Food is prepared at commissary kitchens, then finished at all-electric storefronts without gas or venting, the report said1.
Menus include more than two dozen restaurant concepts; celebrity chefs including Bobby Flay, Michael Symon and Marcus Samuelsson receive up-front payments and equity to license their names, according to CNBC1. Lore rejected a comparison to ghost kitchens, saying locations have a front of house and dine-in customers1.
Starting Nov. 17, Wonder Create will let influencers, entrepreneurs and brands pay $10 a month to start a restaurant based at a Wonder location and take a share of order revenue, with AI helping generate names, logos, pricing and recipes, CNBC said1. Lore said the program is meant to lower the capital and overhead of restaurant ownership1. A separate AI tool, MEL, would use health-tracker data to plan meals; it is not yet available to customers1.
Wonder is automating some kitchen work such as assembling salads and bowls, and Lore said the company aims for fully autonomous food preparation and delivery by 20401. CNBC said The Information previously reported Wonder has operated at a loss since buying Blue Apron and Grubhub1.
Lore declined to discuss IPO timing with CNBC, though he has previously said the company will be ready to go public early next year1. In March Wonder hired Gabrielle Scheibe Rabinovitch, formerly of Worldpay, as chief financial officer1. Lore said going public would raise capital for a long-term business and provide currency for more acquisitions1.
Some diners have criticized food quality and prices on social media, CNBC reported, while citing Indagari transaction data that Wonder had higher weighted average retention and lifetime value than Cava and Sweetgreen1. Lore said taste scores and Google reviews have improved over 12 months1. Avery Marquez of Renaissance Capital told CNBC unprofitable companies seeking public listings generally need to show a path toward profitability or durable growth1.
