Home / Business / The owner of the Houston Rockets buys a food delivery service for $ 308 million

The owner of the Houston Rockets buys a food delivery service for $ 308 million

The owner of the multimillionaire restaurant, Tilman Fertitta, did not think that ordering would be a lasting trend.

"We are in a different world today," Fertitta said in "Power Lunch" on Thursday. "I think people started to realize," Why am I not ordering food at my favorite restaurant and handing it out? "

But it's not just ordering delivery. He is getting into business too.

On Wednesday, Landcadia Holdings, the Fertitta company, announced that it was buying Waitr, a food delivery company, for more than $ 308 million.

"The consumer tells us what to do," said Fertitta, who also owns the Houston Rockets of the NBA. "Companies that do not do what the consumer tells them are companies that are not here again in a few years."

Waitr, which was founded in 2013, is a privately held company headquartered in Louisiana. The company works with more than 5,000 restaurant partners in more than 200 cities in the southeastern United States. Consumers can request delivery or order at local restaurants through the Waitr application.

After the deal is completed, Landcadia Holdings will change its name to Waitr Holdings and start trading on the Nasdaq, making it one of the only two food delivery companies that are public. Fertitta, who is also the host of CNBC's "Trillion Buyer", will serve as director of Waitr Holdings.

Fertitta said that Waitr's presence in smaller markets was part of what made it so attractive. Last year, Waitr's sales were $ 125 million, he said. Sales this year are expected to be around $ 250 million and are projected at around $ 500 million in 2019.

"The growth is there," Fertitta said.

And, in a fragmented industry with so many options for delivering food at home – DoorDash, Postmates, UberEats, GrubHub, to name a few – Fertitta said the ability to enter smaller markets is key.

"Let's try to do is apply the same business model that I did in the acquisition of restaurants," he said. "You have to go out, you want to be the Pac-Man and eat all the small businesses and see what happens, we're going to be in the acquisition mode, we want to eat a lot of competition." 19659013].

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