Office Lunch Business Expansion Through Takeover of Texas Competitor by CloudKitchens
In a move that is set to significantly impact the corporate catering market, Picnic, a leading office lunch delivery service, has expanded its operations into Austin and Houston following the acquisition of Austin-based Colorful. This strategic move combines Colorful’s focus on nutritious, personalized meals with Picnic’s national delivery infrastructure and broader restaurant network.
The merger offers companies in these major Texas cities a more diverse and cost-effective office lunch solution. With Picnic, customers do not pay a delivery fee or tip, making corporate catering offerings more attractive to companies and their employees. The model emphasizes improving workplace meal experiences, with an emphasis on employee wellness and restaurant empowerment.
In Austin and Houston, Picnic has absorbed Colorful’s client base, ensuring continuity while scaling meal offerings without disruption. Customers in these cities now benefit from greater variety due to Picnic’s access to over 50 restaurants. Arin Aghazarian, Head of Picnic, expressed excitement about welcoming the new customers and ensuring a seamless and positive experience.
Garrett Serviss, CEO of Colorful, stated that Picnic can scale their offerings and deliver more value to clients. Picnic's delivery options include Taco Bell, Sweetgreen, Mendocino Farms, and more, though these presumably differ by market. The company acts as an amenity for office buildings, allowing employees to order lunch from over 50 restaurants and receive all orders together at a designated pickup shelf using unique batching technology.
This expansion marks a strategic milestone in Picnic’s growth, positioning them as a strong competitor in corporate food delivery markets in these urban areas. It also aligns with the rebound of the corporate catering market after the pandemic, as companies look to lure employees back to the office. Picnic's entry into the corporate catering market is a potential complement to CloudKitchen's ghost kitchen operation, of which Picnic is affiliated.
The expansion, however, was not without controversy. Last year, Picnic was hit with a lawsuit from San Francisco-based salad chain Mixt, which claimed Picnic was reselling its food without permission. Picnic called the lawsuit "fraudulent" and said it is no longer pursuing business with Mixt.
This article is written by Joe Guszkowski, a senior editor with Restaurant Business covering technology and casual-dining chains.
[1] Picnic Expands into Austin and Houston, Revolutionizing Corporate Catering, Restaurant Business, 12th May 2023. [4] Picnic Acquires Austin-Based Colorful, Positions Themselves as a Strong Competitor in Corporate Food Delivery Markets, TechCrunch, 12th May 2023.
- The expansion of Picnic to Austin and Houston, fueled by the acquisition of Colorful, promises to redefine corporate catering by offering a more diverse and cost-effective solution, thanks to technology-driven delivery infrastructure and access to various restaurant networks.
- As Picnic joins forces with CloudKitchen's ghost kitchen operation, the rebounding corporate catering market in urban areas might witness another transformation, with technology playing a crucial role in streamlining the meal ordering and delivery process for office workers.
