Kune Food, a Nairobi-based cloud Kitchen startup has shut down, barely a year after it began operations.
In a statement on Wednesday, June 22, Kune Foods founder, Robin Reecht attributed the closure to the tough economic times.
He noted that despite offering food at an affordable price of around Ksh352, their sales recorded an all time low, dimming their fortunes.
"Since the beginning of the year, we sold more than 55,000 meals, acquired more than 6,000 individual customers and 100 corporate customers. But at Ksh352 ($3) per meal, it just wasn't enough to sustain our growth."
"With the current economic downturn and investment markets tightening up, we were unable to raise our next round. Coupled with rising food costs deteriorating our margins, we just couldn’t keep going," he stated.
Reecht urged fellow entrepreneurs to consider recruiting his former employees, praising their work ethic and commitment to the craft.
"My first thoughts go to my team. You put your heart and soul into building the Kune that so many people loved. I’m deeply sorry it didn’t work out.
"To all my fellow entrepreneurs, please check the Kune “employee page” on LinkedIn and see if your recruitment needs could be filled by some of our team members. I know those are difficult times for you too. But they are terrific people who will bring tremendous value to your company. You can call me if you need any reference on a Kune employee."
Going down memory lane, Reecht lauded his investors for injecting cash into the business idea that turned to a reality. In June 2021, Kune raised Ksh107 million pre-seed funds in order to launch the on-demand food service.
"My second thought goes to our investors. Some of you joined the Kune journey when it was just me and a Chef, delivering food on foot to a nearby office. Some others joined later and helped us grow into a food tech startup with a tech platform, a factory, a kitchen studio, 7 distribution hubs, 6,000 customers, and a team of 90 people. "
"Not only did you invest in Kune but you gave us your time, brain width, connections, and emotional support. I am deeply sorry that Kune’s vision didn’t come true. To betray your confidence is something for which I will never forgive myself," he noted.
Reecht affirmed that he would take time to reflect on the startup's failure and come up with different strategies for future endeavours.
A number of notable hotel establishments have either been closing down or are on the brink of shutting down due to the tough economic times.
Recently, The Hilton announced its closure on December 31, 2022, after over five decades of operations.