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Fuku by David Chang was a prominent brand that sold food through a ghost kitchen startup Reef.
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Fuku severed all ties to the startup after Reef reported food safety concerns in Reef's trailers.
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Now, the fried chicken chain plans to expand nationally with Reef rival Kitchen United.
David Chang's famous fried chicken restaurant Fuku has ended its partnership with Ghost Kitchen Operator Reef Technology. Instead, it is working with Kitchen United, a competitor to the startup.
Kitchen United, a Southern California-based company, announced Wednesday a new partnership that will allow Chang's Fuku brand to be expanded across the country. Fuku's first ghost-kitchen with Kitchen United was opened in Santa Monica, California on December 15.
Michael Montagano, Kitchen United CEO, stated that the company was honored to be selected by Fuku. He also said that the company looks forward to sharing the experience with fellow Fuku fan across the country.
Insider exclusively reported last week that Fuku had ended its partnership with Reef.
Fuku's departure comes amid reports that Reef, a rapidly-growing ghost-kitchen startup supported by SoftBank, is in chaos.
Venture capital has been raised by the company and partnerships have been made with national chains like Wendy's, Burger King, TGI Fridays and Burger King.
Insider reported previously on Reef's violations of the health department, poor working conditions and customer complaints about raw and undercooked foods.
Reef temporarily closed down food trailers in New York City and Houston after multiple encounters with health inspectors.
Insider obtained emails and photos last week showing customer complaints about raw and undercooked food from Reef mobile kitchens in the US. Insider found that most of the complaints were "undercooked food" from brands like Fuku.
Fuku also stated that Reef was no longer in its control the following week.
Fuku CEO Alex Munoz Suarez stated that Kitchen United shares Fuku’s passion for "executing a fast to market strategy while maintaining an incredibly high brand and operational standards."
Kitchen United, which includes Travis Kalanick's CloudKitchens and Reef Kalanick's GhostKitchens, is a pioneer in the space of ghost kitchens. However, the models of these startups are different.
Reef prepares food for brands through licensing agreements, while Kitchen United rents out kitchens to chains that want to expand their delivery reach. CloudKitchens uses a similar model as Kitchen United. Reef's trailers can be found in parking lots. Kitchen United's ghost-kitchens are easily accessible and look similar to food halls. CloudKitchens also tried the food hall model.
Kitchen United opened its first kitchen in Pasadena in 2018. Kitchen United now has nine locations in the US including two in Scottsdale, Arizona, Austin, Texas, San Jose, California and New York City. After purchasing Zuul, a New York-based ghost food operator, Kitchen United expanded its New York facilities.
Fuku began as a secret fried chicken sandwich that Chang sold at his Momofuku Noodle Bar, New York City. In 2015, he opened his first Fuku in the East Village. Both companies announced Wednesday that Fuku will open new Kitchen United locations in Texas and New York City. Fuku has brick-and-mortar outlets in both cities.
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