Just Eat expands into the catering market with its acquisition of London-based City Pantry

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London-based food delivery giant Just Eat has entered into the catering business, announcing today that it has acquired City Pantry for approximately €18 million.

Also based in London, City Pantry was founded in 2014 and is a leading European B2B catering marketplace – linking caterers and restaurants with corporate customers to provide food for employees and clients. The startups currently feeds over 120,000 people for more than 1,000 corporate customers each month. It works with hundreds of suppliers to provide meals for corporate events and business meetings.

City Pantry’s offering includes team meals, regular employee meal plans, individual ordering options, pop-ups that bring the restaurant to your office or event, and catering for meetings and events.

Just Eat will leverage City Pantry’s brand, technology, and B2B experience to expand into a UK market estimated to be worth around £10 billion a year, providing corporate customers with a wide range of high-quality, reliable food for delivery, and restaurants with access to pre-scheduled, high-value corporate orders. Just Eat also plans to use its international presence to scale City Pantry’s model into more markets.

“What we eat in our personal lives has dramatically changed in the past 10 years in terms of quality and choice,” said Stuart Sunderland, founder and CEO of City Pantry. “The food revolution is now beginning to happen at work and City Pantry is at the forefront of this. We know that Just Eat shares our belief and we’ve been impressed with its vision of what we can do together.”

“Working with City Pantry to accelerate its mission to improve and modernize the workplace dining experience is a great opportunity for Just Eat. It’s the right time for us to enter the corporate market and expand our offering,” said Peter Duffy, Interim CEO of Just Eat.

“City Pantry has a well-established business, fantastic expertise and an entrepreneurial spirit that matches our own. We look forward to bringing the company into the Just Eat family and working with them to grow in the UK and internationally in this exciting and dynamic market.”

The initial cash payment of €18 million was paid using existing resources, and further remittances may follow depending on whether certain financial criteria are met over the next three years. The acquisition of City Pantry follows Just Eat’s acquisition of restaurant software groups Practi and Flyt earlier this year.