Feb 22, 2023 — Food Rocket
, a rapid grocery startup, announced that it will cease operations in San Francisco to focus its strategy in North Carolina. The decision is related to an unstable economic environment and rising inflation, which negatively impact the startup's business model. All capex and opex budgets will be shifted to the region, and the company will offer voluntary relocation options to as many team members as possible to ease the transition.
The company must continue improving efficiency, reducing costs and strengthening its strategic focus on North Carolina, where the cost of doing business is significant lower due to its collaboration with Circle K's parent company Alimentation Couche-Tard ("Couche-Tard"), the global leader in convenience, with more than 7,000 U.S. locations and more than 14,300 worldwide. The company acquired a minority equity stake in Food Rocket in 2022.
Last year, Food Rocket joined forces with Circle K to launch the first rapid delivery service in Charlotte, delivering up to 7,000 SKUs with a focus on grocery and convenience products from Circle K's portfolio.
"We had to make a tough decision in San Francisco so that we can support our people in other locations. The Californian team made history by launching the first 10 minutes delivery service in the area, and we are so grateful for all of the hard work and dedication they gave to Food Rocket," said Vitaly Alexandrov, CEO and founder of Food Rocket.
Food Rocket launched in San Francisco in April 2021, followed by a Chicago expansion in February 2022 and Charlotte in November 2022. It takes only 2-3 minutes to process orders, and delivery takes around 10 minutes. Food Rocket guarantees delivery within a time frame specified in the app or it will be free.