Elior Acquires French Startup Nestor

Elior, a prominent corporate catering firm, has completed the acquisition of French startup Nestor. The financial terms of the deal have not been publicly disclosed.

Nestor's Original Concept

Nestor initially distinguished itself within the competitive food delivery landscape, differentiating its approach from major players like Deliveroo and Uber Eats. The company’s core innovation centered around a streamlined menu system.

Each day, Nestor presented a single, curated lunch menu. Customers could quickly place an order if the offering appealed to them, with delivery typically occurring within 10 to 20 minutes.

Efficiency Through Simplicity

Offering a single menu enabled efficient delivery routes, allowing a single courier to fulfill multiple orders in a single trip. Furthermore, by operating its own kitchen facilities, Nestor was able to enhance its profit margins.

This was achieved by eliminating the commission fees associated with partnering with third-party restaurants.

Growth and Evolution

Since its initial coverage in 2016, Nestor has maintained a capital-efficient approach, primarily concentrating on its distinctive product offering. Elior reports that Nestor successfully reached a volume of 10,000 meals delivered each week.

In recent months, Nestor explored expanding its services beyond individual deliveries.

Expanding Service Offerings

The startup began offering solutions for company canteens, delivering meals directly to offices in refrigerated containers. This approach shares similarities with Foodles, another French company specializing in canteen-style services.

Nestor also catered to business meetings by providing individually packaged lunches for client interactions. This pivot mirrors a similar strategic shift undertaken by Popchef.

Focus on the B2B Market

Following the acquisition, Nestor will increasingly concentrate on the business-to-business (B2B) market. While Elior has a strong presence with large corporations, securing contracts with small and medium-sized businesses for on-site canteens has proven challenging.

The Value Proposition

The core benefit for businesses is the elimination of the need for their own kitchen infrastructure, as all meal preparation is handled in advance. Additionally, employees are spared the need to search through delivery apps for alternatives to typical fast-food options like burgers and pizza.