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ZeroCater Raises $12 Million to Expand Snacks and Catering to the Fortune 500

Food tech startup plans to expand nationally to be the single food provider for all companies

San Francisco – May 1, 2018 – ZeroCater, a leading provider of office catering and snacks, has raised its Series B funding of $12 million, led by Cleveland Avenue LLC*, with participation from Romulus Capital and Struck Capital. Today, the company announces it will expand office snacks and catering to new markets in 2018, becoming the single food provider for various Fortune 500 companies throughout the United States.

Click to Tweet @ZeroCater Raises $12M to Expand Snacks, Catering and Kitchens to the Fortune 500. #ZeroCaterGoesNational https://ctt.ec/UTJ4L+

By expanding nationwide and targeting the Fortune 500 with its snacks and catering offerings, ZeroCater is paving the way to become the sole food provider for companies of all sizes. This expansion, along with the launch of its office snacks product last year, situates the company to compete well in the $144 billion corporate foodservices market. By combining industry-leading technology, people and operations to give customers the food they love, ZeroCater provides a superior food experience that other foodservice providers can’t match.

“Our investment in technology enables us to execute flawlessly through data-driven operations, give companies real-time visibility into their office food programs, and gain insight from every customer to give them the food they love,” explained Arram Sabeti, founder and CEO of ZeroCater.

ZeroCater is well-positioned to take advantage of evolving corporate cultures that cater to a millennial workforce. A recent study by Fidelity showed that, on average, millennials would be willing to take a $7,600 pay cut in exchange for a better work environment. This value shift means that employees are choosing to work for companies that build a better culture by bringing people together, often over food. A recent survey by ZeroCater showed that 88% of employees consider employer-provided catering and snacks an important benefit.

“As we continue to expand our Cleveland Avenue portfolio, we’re confident in our investment in ZeroCater because of its emerging leadership in technology, food innovation and customer service,” said Don Thompson, founder and CEO of Cleveland Avenue, a private equity and venture capital fund focused on the food industry.

ZeroCater deploys technology throughout its operations to connect with customers and vendors, enabling end-to-end control over the food experience. The company collects feedback after every meal using a variety of channels, including its dashboard, emails and physical terminals located at the client site. ZeroCater’s technology also gives its customers insight into that same employee feedback along with data on company spending, consumption and more. By enhancing its visibility, ZeroCater gives customers greater insight and control over their food programs and spending. The company’s account managers also partner closely with customers to ensure every aspect of the food program is running flawlessly. Through its technology and people, ZeroCater can provide companies the food every employee loves.

Prior to its Series B, ZeroCater reached more than $250 million in sales with only $5.6 million in outside capital. From the start, Sabeti has been incredibly strategic with funding and has remained focused on capital efficiency and building a profitable business. With this round of funding, ZeroCater will rapidly expand snacks and catering nationally in its quest to become the largest B2B food provider in the world. The company is also adding new members to its board: Justin Kan, entrepreneur and CEO of Atrium; J. Skyler Fernandes, managing director of investments at Cleveland Avenue; and Krishna K. Gupta, founder and managing partner at Romulus Capital.

About ZeroCater

With a mission to build a better workplace through food, ZeroCater is on the path to becoming the #1 food company serving the workplace. Founded by Arram Sabeti in 2009, ZeroCater has become a leading provider of office catering and snacks, serving companies including Dropbox, Fandango, RetailMeNot and Salesforce. Technology, people, operations and top-notch food partners allow for ZeroCater’s seamless process and provide customers with in-depth insight into their food programs. ZeroCater provides office catering and snack services in San Francisco; New York; Washington, D.C.; Chicago; Austin and Los Angeles, with plans to expand nationally in 2018. For more information visit zerocater.com. Follow @ZeroCater on Facebook, Instagram, LinkedIn and Twitter.

About Cleveland Avenue

Cleveland Avenue, LLC is a private equity and venture capital firm that accelerates and strategically invests in innovative restaurant, food and beverage concepts and emerging brands.

*Cleveland Avenue is the general partner of the Cleveland Avenue Food and Beverage Fund I. Visit us at www.clevelandave.com and @CleveAveLLC on Twitter and Instagram.
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