Local Kitchens, a tech-enabled multi-brand restaurant company, has raised $40 million in a new funding round led by venture capital firm General Catalyst.

The Series B round also included participation from existing investors Human Capital, Pear VC and DoorDash co-founder Stanley Tang, who has also joined Local Kitchens' board of directors.

Founded in 2020 by alumni of the DoorDash founding team, Local Kitchens operates a unique model that brings together multiple restaurant brands in a single kitchen optimised for mobile ordering.

The company manages all food preparation in-house, differentiating itself from ghost kitchens and virtual brand concepts.

"No matter how much technology disruption there is, the future of restaurants is still about great food and great service – and that starts with investing in our employees," said Jon Goldsmith, CEO and co-founder of Local Kitchens.

The company claims its model allows it to achieve 50% more sales per human hour than traditional restaurants, while also offering better wages to address industry labour challenges.

Kyle Doherty, managing director at General Catalyst, said Local Kitchens' approach "empowers consumers, supports workers, and uplifts local restaurants" in a landscape transformed by demand for convenience and digital integration.

Since its Series A round in 2021, Local Kitchens has scaled its business fivefold and achieved unit-level profitability, with one in ten households in the San Francisco Bay Area having tried the service.

The new funding will be used to expand Local Kitchens' footprint beyond its current Northern California base, with plans to enter the Los Angeles market and beyond California.

Tang added: "The trend towards on-demand dining is undeniable. With Local Kitchens, we're building the infrastructure to create needed efficiencies for the industry."

Image credit: Local Kitchen website