fraîche Secures Funding for Fresh Meal Delivery to NYC Offices

Fraîche Secures Seed Funding to Enhance Workplace Food Options

With businesses encouraging a return to office environments, companies like Fraîche, a New York-based foodtech innovator, are positioning themselves as a key amenity for welcoming employees back.

Seed Funding Announcement

The company, established in 2019, recently announced the successful completion of a $2 million seed funding round. Investors included prominent figures such as Pascal Rigo of La Boulange, Jean Moueix from Petrus Winery, Bruno and Julien Caron of Bakerly, and Newlab.

Revolutionizing Workplace Nutrition

Fraîche, whose name echoes the French term for fresh cream, is dedicated to providing healthier food choices within the workplace. The company installs self-replenishing, intelligent refrigerators in offices and collaborates with local restaurants – including Le Botaniste, Egg Shop, Pressed, and La Fermiere – to supply the food.

Service and Future Plans

Furthermore, Fraîche intends to introduce its own line of private label products, according to CEO Tximista Lizarazu, as reported to TechCrunch. Companies simply define the level of employee subsidy, and Fraîche manages the stocking and daily replenishment of the fridge.

Employees can also utilize a dedicated mobile application to view the fridge’s available selections.

Investor Confidence

Romain Afflelou, a founding partner at Cosmo Connected and an early investor in Fraîche, expressed his enthusiasm for the company’s progress. He highlighted the growing corporate willingness to invest in employee benefits.

Afflelou typically focuses on ventures that align with future trends in mobility, nutrition, and healthcare.

Benefits of the Fraîche System

“Fraîche delivers a comprehensive food solution for the office, offering employees access to affordable, fresh, and wholesome options,” Afflelou stated. “It provides convenient access to diverse meals throughout the workweek.”

Addressing Pandemic-Related Challenges

Many office cafeterias were forced to close during the pandemic and faced difficulties in resuming operations due to staffing shortages, Lizarazu explained. Fraîche itself initially experienced a complete loss of its locations, but saw a recovery approximately four months later.

Optimism Despite Ongoing Uncertainty

Despite concerns about the Omicron variant potentially prolonging remote work, Lizarazu remains confident. He believes that a minimum of 30 employees present in an office is sufficient to make their service viable.

Even if 15% to 20% of companies do not fully return to the office, Lizarazu is optimistic about the remaining 80% of the market.

The Evolving Workplace

“Businesses are focused on enhancing their office environments to incentivize employees to return, and they are allocating increased budgets to health and wellness initiatives,” Lizarazu noted. “The market is currently undergoing a shift, and we are experiencing accelerated sales growth.”

“We dedicated 2020 to technology investment and product development, and we are now prepared for widespread deployment.”

Early Adoption and Revenue

Even in its early stages, the company is observing customers utilizing the fridges three to four times daily for meals and snacks. Lizarazu initially projected monthly spending of $5,000 per company, but is currently seeing figures double that amount.

Cost-Effectiveness and Value Proposition

Fraîche generates revenue between $80,000 and $150,000 per machine annually, encompassing fridge maintenance and food delivery. This is comparable to the cost New Yorkers currently incur for food delivery services, but with reduced inconvenience.

Total Funding and Current Clients

This latest funding round brings the company’s total funding to $3 million. Current Fraîche clients include Tikehau Capital, Silverstein Properties, Newlab, Brooklyn Navy Yard, Ardian, and Ogury, with three additional locations scheduled to launch in January.

Future Growth Plans

The funding will be used to expand Fraîche’s presence in New York and to grow its team of eight employees, with a particular focus on sales and marketing. The company plans to hire two sales representatives and aims to reach a total of 20 employees by the third quarter of 2022.

Fraîche has already secured 10 locations since the summer and intends to deploy to 30 locations within the next nine months, ultimately expanding to 100 locations by the end of 2023.

Market Readiness and Visibility

“Our primary focus now is on increasing visibility,” Lizarazu concluded. “As long as our sales team engages with the appropriate clients, we are confident that the market is receptive, and offices are genuinely enthusiastic about our offering.”