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Corporate food catering startup Chewse raises $19 million

Chewse, a food catering and company culture startup, just announced a $19 million fundraising round as it gears up to expand its operations in the Silicon Valley area. This brings Chewse’s total funding to more than $30 million. Chewse’s investors include Foundry Group, 500 Startups and Gingerbread Capital.

Instead of plopping down meals in the office and bouncing, Chewse aims to create a full experience for its customers by offering family-style meals. In order to ensure quality, Chewse employs drivers and meal hosts so that it can provide them with training. Chewse also offers it drivers and meal hosts benefits.

“We initially started with a contractor model but then very quickly started to realize our customers often mentioned the host or the driver in their feedback,” Chewse CEO and co-founder Tracy Lawrence told TechCrunch.

“I know there’s a lot of other companies that are like food tech or logistics but for us, it’s all about elevating and improving company culture,” Lawrence said. “We have technology but we’re investing in it to create an exceptional real-life experience.”

“On the tech side, we’re using a ton of machine learning and algorithms to learn what people like to eat and create custom meal schedules,” Lawrence said.

To date, Chewse has hundreds of customers across three markets. Chewse initially launched in Los Angeles, but paused operations for a little over one year in order to focus on achieving market profitability in San Francisco. Chewse has since relaunched in Los Angeles, in addition to launching in cities like Palo Alto and San Jose. As part of the Silicon Valley launch, Chewse has partnered with restaurants like Smoking Pig, HOM Korean Kitchen and Oren’s Hummus Shop.

Within the next year, the goal is to double the number of markets where Chewse operates. But Chewse faces tough competition in the corporate meal catering space.

Earlier this year, Square acquired Zesty to become part of its food delivery service, Caviar. The aim of the acquisition was to strengthen Caviar’s corporate food ordering business, Caviar for Teams.

At the time, Zesty counted about 150 restaurant customers in San Francisco, which is the only city in which it operates. Some of Zesty’s customers include Snap, Splunk and TechCrunch. Zesty, which first launched in 2013 under a different name, had previously raised $20.7 million in venture funding.

“Zesty is a direct competitor of ours for sure,” Lawrence said. “When we’re thinking about the things that set us apart from Zesty and ZeroCater, the investment in using the technology and building a meal algorithm — which is something we know they’re doing by hand — and then automatically calibrate when we’re getting feedback because we employ our hosts and our drivers. Yes, it’s more expensive for us but because it provides such a superior experience, we retain our customer longer.”

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Square acquires corporate catering startup Zesty

Square has acquired elements of corporate catering startup Zesty . Square, which already owns on-demand food delivery service Caviar, plans to use Zesty’s assets to strengthen Caviar’s corporate ordering business, Caviar for Teams.

Neither company disclosed financial terms of the deal, but the plan is for Caviar and Zesty to operate independently in the short term.

“Restaurants turn to Caviar to reach more diners and grow their businesses,” Square Caviar Lead Gokul Rajaram said in a press release. “Expanding our corporate catering product with Zesty enables us to offer our restaurant partners another way to boost sales through higher-margin, large-format catering orders,” said Rajaram, Caviar Lead at Square. “Caviar is thriving, and we’re excited to supercharge its success with Zesty and double down on an area with great opportunity to drive more growth for our business.”

Since its acquisition of Caviar in 2014, Square has acquired OrderAhead’s pickup business to launch Caviar Pickup and Entrees On-Trays to expand its footprint in the Dallas-Fort Worth, Texas area.

Zesty currently partners with about 150 restaurants in San Francisco, which is the only city in which it operates. Some of Zesty’s customers include Snap, Splunk and TechCrunch. Zesty, which first launched in 2013 under a different name, had previously raised $20.7 million in venture funding.

“Adding Zesty’s offerings, like sophisticated menu-planning tools and algorithms, white-glove catering services, and nutrition and allergen customization, will help us expand our catering offering and even better serve companies of all sizes,” the Caviar team wrote on Medium. “Plus, it provides our restaurant partners with more opportunities to reach new corporate customers.”

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Zesty, facing stiff competition, replaces its CEO and restructures

Zesty CEO and cofounder Chris Hollindale. TechCrunch has learned that there has been a management shakeup at Zesty, a business catering service that’s health-minded and tech enabled. Funded by Index Ventures, Founders Fund, Forerunner Ventures and Y Combinator, Zesty has raised $20.7 million in venture funding to-date. Cofounder Chris Hollindale stepped into the CEO role in July, after the departure of his cofounding partner… Read More

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Here are the 59 startups that demoed at Y Combinator Winter ’16 Demo Day 2

ycombinator “Food, housing, healthcare, transportation. Life essentials made better and more affordable.” These are the types of startups that partner Paul Buchheit said were demoing today at Y Combinator’s Winter 2016 Demo Day 2. Yesterday, we covered the first 60 startups from the batch, and picked our 7 favorites. Plus, check out our picks for the top 8 startups from these 59.… Read More

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