Wonder Plans 100 Texas Sites and Lets Users Run Restaurants

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Wonder, the food startup created by serial entrepreneur Marc Lore in 2018, plans to open at least 100 locations in Texas by the end of 2027. It will enter the state for the first time next year. Today it has 170 storefronts, which appeared over the last three years, from Virginia to Massachusetts.

Lore, who describes Wonder as a "vertically integrated food technology platform," told CNBC the company is preparing for a possible IPO. He declined to talk about timing. He has said before that Wonder will be "ready and prepared to go public early next year." In March it hired Gabrielle Scheibe Rabinovitch, formerly of Worldpay, as chief financial officer.

Restaurants built by customers

On Nov. 17 the company launches Wonder Create. Influencers, entrepreneurs and brands can pay $10 a month to open their own "restaurant" inside a Wonder location and earn a share of the revenue from its orders. AI helps them build the brand, including the name, logo, pricing and recipes.

A second AI project, called MEL, can use a person's health data, such as readings from an Oura ring or a Whoop tracker, to prepare breakfast, lunch and dinner. It is not yet available to customers.

Money and automation

Wonder has raised $3.3 billion to date from investors including DoorDash, Alphabet's venture arm and Gwyneth Paltrow. A Series D round earlier this year put its pre-money valuation at $9 billion. It has spent more than $1 billion on acquisitions, among them Grubhub, Relay and Blue Apron. The Information has reported that the company operates at a loss since buying Blue Apron and Grubhub.

Wonder is automating kitchen tasks such as assembling salads and bowls, and soon sauces and beverages. Lore said the company aims for food preparation and delivery to be fully autonomous by 2040. Because it owns Grubhub, customers ordering in its own app pay no delivery fees.

The company faces skeptics. Some diners criticize food quality on social media, and Wonder has drawn comparisons to ghost kitchens, a category in which Kitchen United sought bankruptcy protection. Lore said taste scores have improved over the past 12 months.

Source: CNBC