David Chang's ambitions can seem insatiable. He has — by the New York Times' accounting — more than a dozen restaurants, nine dessert bars, two cocktail bars, a prepared food business, and a food magazine and publishing company to his name. Now he's also got $7 million for his food delivery service, Ando, which so far services Midtown Manhattan. The Times reported on the funding round, Ando's first, and notably the first of Chang's ventures to accept significant venture financing.
Kirsten Green, who runs Ando's largest investor so far, San Francisco's Forerunner Ventures, tells the Times that “You’re signing up for a certain level of ambition focused on growth when you take venture money... Hopefully we’ll make a big successful business, and then we’ll look for a liquidity event." A liquidity event, rather than a force of nature or a culinary technique, means an IPO, an acquisition, or a buyout of some kind. But the fast-paced growth model espoused by Silicon Valley may or may not serve Ando well. Describing how the business in New York got a cheese sauce on a menu item to be just right for delivery, Chang tells the Times it "it took us four months to work on this one component."
Green might not like the sound of that, but she says she's willing to wait: “We think about scaling a business over the course of many years,” she tells the Times. “We have time to evaluate customer data and understand how to drive repeat business." Meanwhile, Chang is shifting emphasis more clearly to delivery and encouraging others to think similarly. Eater quoted Chang from a talk he gave recently in which he estimated that restaurants should focus 40 percent of their efforts on delivery and 60 on their dining room, up from the typical NYC 20 percent delivery and 80 percent dine-in.
As Fast Company pointed out in a profile of Chang this past spring, Ando, like Momofuku, is named after instant ramen creator Momofuku Ando. But ramen the Chang way, isn't quite ready for delivery. "It just looks gnarly," Eater quotes Chang's description of delivery ramen. "Maybe in five years we’ll be able to do that kind of noodle." Maybe Ando will be in San Francisco by then — gotta grow, after all!
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