The SoftBank-backed ghost-kitchen startup Reef had locations shut down in at least 6 cities by health authorities as insiders say it raced to open locations
Several former Reef area directors and managers have told Insider that Reef plays fast and loose with city regulations as it seeks to quickly add hundreds of ghost kitchens across the US and globally. The former employees' identities are known to Insider, but they spoke on condition of anonymity for fear of professional repercussions.
A Reef spokesperson said the company has worked with cities to adopt regulations to their business model. "There's no tolerance for noes or can'ts," said a former area manager who was employed during Reef's fast-paced pandemic growth in 2020."We ruined a lot of relationships early because instead of going to municipalities ... we would just go and do it," the person said. "So we would go onto someone else's property, put up a vessel, and just operate it until they found out and came and demanded that we move it.
"Unlike traditional food trucks, water is not involved in on-site cooking nor the preparation of food within our kitchen vessels," a spokesperson wrote in a statement."Reef Kitchens vessels are for cooking, storage, and operations. Whereas the actual food preparation and handling of food is carried out in separate fully compliant brick-and-mortar commissaries. This is the case for all vessels in every market where we operate.
"In Houston, we successfully resolved the administrative permitting issues you referenced months ago. In New York City, Reef continues to operate fully permitted brick-and-mortar kitchens, and we are working closely with local officials to develop an appropriate permitting framework for our vessels," a Reef spokesperson wrote in a statement.Reef hasn't tangled with inspectors in every city.
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