Here’s What Transpired Following Shark Tank.

Not all eateries provide an actual dining experience within a physical space. Virtual restaurants, also referred to as ghost kitchens or dark kitchens, cannot be visited as they are solely digital operations. These establishments offer food that can be ordered through delivery applications like Uber Eats or DoorDash. This business model saw significant growth during the pandemic; meal delivery services surged by 162% in April 2020 compared to the previous year, as reported by Bloomberg Second Measure, and it continues to grow each year — albeit at a slightly slower and more consistent pace.

In 2014, the concept of kitchens without dining areas inspired entrepreneur Jeff Appelbaum to establish Salted. The company was focused on providing healthier options for takeout and delivery, without any dine-in service available.

By 2020, Appelbaum had expanded the business to six distinct restaurant brands — Cauliflower Pizza, Moonbowls Korean Cuisine, Ginger Bowl Chinese Cuisine, the $5 Salad Company, F/ck Gluten, and the keto-friendly Thrive Kitchen — with operations in Los Angeles, San Francisco, Chicago, and Columbus. Believing in the technology-driven model as a glimpse of the future of restaurants, he appeared on “Shark Tank” in search of an investment to further grow Salted.

Salted appeared on season 11, episode 23 of “Shark Tank,” requesting a $500,000 investment in exchange for a 5% equity stake. Founder Jeff Appelbaum shared that this was the third version of the business, which had previously provided online cooking classes and meal kits before evolving into its current restaurant delivery model.

Each brand under the Salted umbrella offered various nutritious fast food alternatives, from gluten-, soy-, and nut-free cauliflower pizza to a Californian reinterpretation of Korean bowls and budget-friendly salads. The Sharks tasted the samples and enjoyed the food — particularly Lori Greiner, who expressed that this type of venture was right up her alley as a target consumer.

Salted was initially backed by venture capital partners. The company reported $1.1 million in sales the year it aired, with a run rate of $3 million, suggesting good future potential. However, it had also incurred a loss of $750,000 that year during filming, which raised concerns among the Sharks, especially since investors had not yet seen a return on their investment. All Sharks except Greiner opted out, but after Appelbaum interrupted and disregarded her input, she declined to invest. Ultimately, the company left the show without a deal, facing challenges such as market competitiveness and Appelbaum’s perceived lack of SEO strategy, along with concerns regarding his energetic demeanor that made some Sharks uncomfortable.

Despite not securing any investments from the Sharks, Salted experienced considerable success after the show. By May 2021, one year post-airing, the company raised $9 million in seed funding from partners that included Kamine Development Corporation, Craft Ventures, Valor Equity Partners, Proof Ventures, and Wonder Ventures. At that point, the business had expanded to 17 locations nationwide and aimed to hit 80 by the following year.

The growth continued with another investment round in October 2021. By then, Salted employed 200 individuals and had 19 locations operating across seven states. Collectively, these restaurants generated between $1 million and $2.5 million in annual sales.

In addition to establishing its delivery-focused kitchens, Salted opened its first physical Moonbowls location in Los Angeles in 2021. Founder Jeff Appelbaum had ambitious visions; he told QSR magazine that while delivery was a key part of the business strategy, the long-term goal was to build “multi-channel brands that will thrive for the next 50 years.”

Salted is still operational and currently runs six distinct restaurant brands, which include the Hawaiian-inspired Lulubowls, along with Cauliflower Pizza, Moonbowls, Ginger Bowls, the $5 Salad Company, and Thrive Kitchen. The company serves customers in Austin, Atlanta, Los Angeles, San Francisco, Chicago, Columbus, Houston, Philadelphia, and New York, with plans to have 60 locations operational by 2024.

In October 2023, Salted secured an additional $14 million in funding. Each restaurant was profitable at that time, averaging around $1 million in annual sales. While the main company isn’t very active on social media, its Moonbowls brand boasts nearly 10,000 followers on Instagram, where it promotes special offers for occasions such as Father’s Day and New Year, as well as its delivery services and event catering options.

In the fall of 2023, CEO Jeff Appelbaum planned to further diversify the business model with its first acquisition of a Mediterranean-inspired restaurant called Xenia. By November 2023, this new acquisition featured a menu with pita, crispy falafel, and tzatziki offered across six Salted locations.

As Salted continues to develop, founder Jeff Appelbaum’s visions for the company’s future remain ambitious. Following the recent round of funding in October 2023, he expressed to Techcrunch his desire to have “thousands of locations” in the coming years. Previously, he had mentioned his aspiration to “build the next Chipotle” (via Techcrunch).

Though the company currently operates only in the U.S. (now present in 10 states), Appelbaum also aims to take the brand internationally, with real estate partners searching for suitable locations. On his LinkedIn profile, he boldly states that Salted is “scaling tomorrow’s restaurant brands.”

With a focus on rapid technological advancement and minimal physical restaurant overheads, Salted is well-positioned for future growth — whether through geographic expansion or through the development and acquisition of additional restaurant brands. The meal delivery market continues to thrive; as of March 2024, major meal delivery services reported a collective year-over-year growth of 8% (according to Bloomberg Second Measure).