Wonder, Marc Lore’s food hall delivery concept, is partnering with FreshRealm to boost expansion.
The partnership aims to help the chain expand from 12 to 90 locations by the end of 2025, with a goal to open 25 this year.
FreshRealm produces fresh meals for grocery retailers and meal kit providers, such as Wonder-owned Blue Apron. The company is set to operate Wonder’s upstream ingredient prep and production.
As part of the deal, Wonder will transfer four of its production facilities in New Jersey to FreshRealm.
“FreshRealm will continue investing in its industry-leading fresh supply chain by bringing in-house new capabilities, technologies and expertise,” a Wonder spokesperson told Food On Demand, adding that through this transaction the chain will receive lower fixed costs, higher throughput and “favorable unit economics.”
A Wonder food hall location inside Walmart.
FreshRealm aims to lower costs for operators, by doing back-of-house work. For Wonder, it also allows for food to be made in bigger batches and to buy ingredients at a larger scale.
That’s good news for the multi-brand hub, whose model consists of having a variety of meals prepped off-site, then assembled and cooked in TurboChef ovens at each storefront. Every location offers food from as many as 30 restaurant brands.
Lore remains confident in the food hall’s delivery, and takeout-focused strategy and its approach to offering high-quality meals from top U.S. chefs and restaurants.
Several moves have been made of late. It recently acquired delivery service Relay, and now utilizes its own fleet of couriers for fulfillment, bypassing third-party delivery.
That acquisition, according to the Wonder spokesperson, has aided in delivery speed. “This is a key component to Wonder’s business, and as we continue to grow in the Northeast, this partnership will further improve our customer and courier experience, with a focus on enhanced delivery speed and accuracy,” the spokesperson wrote.
The concept also opened within Walmart stores earlier this year. In addition to the Quakertown, Pa., location, it confirmed openings in the Teterboro and Ledgewood, New Jersey Walmart locations by the end of summer 2024.
