Operations

Starbird Chicken raises $12M

provided

November 8, 2021

San Francisco-based Starbird Chicken has raised $12 million to fuel its next phase of growth, which includes developing company-owned restaurants and ghost kitchens, increasing licensing engagements and launching a franchise offering.

"This year has been a phenomenal one for Starbird, and this capital infusion is evidence that our mission to reimagine what fast food can and should be has potential for exponential growth," CEO and founder Aaron Noveshen said in a company press release. "When we created Starbird five years ago, we saw consumers were looking for more out of fast food and that there was an enormous opportunity for someone to step up and establish a new segment, which Starbird calls super-premium fast food. We're incredibly proud to be a leader in the innovation of this space and are energized by what's to come."

The investment comes on the heels of Starbird Chicken reporting strong third-quarter results, including year-to-date same-store sales growth of 26% over 2020 and 75% over 2019. The brand, which operates in street-side storefronts, stadiums, airports and ghost kitchens, has increased its footprint this year throughout the San Francisco Bay Area and will enter Southern California by the end of the year.

"Over the last 18 months, consumers' needs and wants have changed dramatically," said Ryan Greene, a principal at KarpReilly, the private investment firm leading the fundraising round. "They're interacting with restaurants in a different way and have become even more particular about what they eat and how they purchase it. Starbird has clearly demonstrated it can deliver premium, high-quality food and an unrivaled customer experience even in the most difficult operating environment. We are proud to partner with Starbird on this investment and look forward to its continued growth as it expands its business to reach more customers in the U.S."

Greg Dollarhyde of Dollarhyde Investment Group III, an original investor in Starbird and the previous lead investor said he also saw something special in Starbird.

"This innovative concept is in a league all its own," he said in the release. "I truly admire the passion that Aaron and his team have for delivering their vision, and welcome KarpReilly as thoughtful investors and partners. Starbird continues to beat every expectation."

The chain has also earned top industry awards such as being named "Best Restaurant" on ICX Association Elevate Awards, and ranking #21 on Fast Casual's Movers & Shakers list.

Starbird Chicken prides itself on its menu items but also its customer experience, which offers optimized menu and tech-enabled convenience designed to meet consumers' need for convenience and accessibility. Starbird Chicken also operates a suite of virtual brands under the Starbird name, including Starbird Wings, Starbird Salads, Starbird Bowls and the brand's new plant-based concept, Gardenbird. Strategically tailored to maximize digital real estate and drive sales through different channels, Starbird's virtual brands are trending at double digits of company-wide sales in Q3 2021, according to the release.