Starbucks, Chick-fil-A and Sweetgreen are all investing in ghost kitchens as a way to manage the demand for delivery.
Starbucks' delivery program in China, in partnership with Alibaba, is further along than its nascent U.S. delivery business. Six percent of Starbucks' Chinese sales came from delivery orders during its fiscal-third quarter.
Restaurants can also turn to start-ups that have created ghost kitchens that can house multiple restaurants under one large roof, already equipped with necessary kitchen equipment. FormerAnother is Kitchen United, which has received funding from Those clients range from local restaurants like Chicago's Urbanbelly to national chains like Sweetgreen and Chick-fil-A, according to Collins. Leases with Kitchen United are based on customer preference and can be as short as six months.
"The whole cost-basis of running your restaurant is more efficient in one of these facilities than your regular retail box," Collins said. The company's off-premise business, which includes delivery, grew by 55%. Red Lobster is betting that it can double those sales this year after investing more in that part of its business.Despite the potential savings, he said that most restaurants interested in Kitchen United never mention cost savings. Instead, they are either looking to offload the pressure of delivery to a location that is better suited to it or chains are looking to tap into a new market.
Kitchen United's future plans are ambitious. It plans to open a ghost kitchen in Scottsdale, Arizona in the next two months, with about five or six more in new markets by the end of the year. Over the next five years, it wants to build around 400 facilities.
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