WeWork Food Labs will open Friday at the company’s recently developed 70,840-square-foot office space in North Beach at 60 Francisco St. It’s WeWork’s second co-working space geared toward food startups — the first one opened in New York earlier this year, back when WeWork was valued at $47 billion. That was also before its failed IPO, the downfall of its CEO and Soft Bank’s rescue package.
Despite the challenges, bringing Food Labs to San Francisco was a natural decision, said Tessa Price, who heads up the program in New York.
“A lot of the innovation we’re seeing in food and beverage right now happens at that intersection of tech and food,” she said. “I couldn’t think of a better place to capture that than San Francisco.”
The new office can house up to 100 people working for startups in food technology, agriculture, consumer product design and other food-related areas. Some that have already signed on include 12 Tides, a seaweed snack company; Brands of Britain, which imports specialty food and beverages from the United Kingdom; and ESV, a mobile app that shares health and safety information about food products.
“All of the brands we work with are solving for a better food future,” Price said, citing examples like companies that develop new plant-based protein or build software for the hospitality industry.
Unlike other local food business incubators, which tend to be housed in commercial kitchens, WeWork Food Labs only provides office and event space. Instead, members can access a kitchen through a partnership with San Mateo’s KitchenTown.
The main appeal for startups will be Food Labs’ programming and connections to mentors, potential investors and industry resources that might be difficult for new entrepreneurs to find on their own, said Price. Those resources include time in a laboratory or an introduction to a supplier.
The company’s core business of leasing office space, redesigning it and renting it out has proven to not be profitable. WeWork was reportedly running out of money, though it was rescued by Soft Bank and received an infusion of $1.5 billion. There have been rumors of future closures elsewhere in the country, layoffs and concerns about whether its business model is sustainable. However, the company is doing well locally and focused on growth in the Bay Area, said Elton Kwok, Northern California general manager.
“We’re continuing to open buildings, sign leases and focus on the members’ experience,” he said in an emailed statement.
Price described WeWork’s industry-specific Labs arm as another area of focus as the company moves forward. There are about 70 worldwide.
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