Ghost Kitchens

Ghost Kitchens are professional commercial facilities typically used for preparing delivery-only meals. Although some ghost kitchens are now offering pick up or shared outdoor dining spaces, it is best to think of a ghost kitchen as a shared kitchen (typically commissary space) used by multiple brands. Picture a hotel; only instead of rooms, identical cooking suites are available to rent designed for restaurant brands looking to expand their off-premise sales without adding to their brick and mortar overhead with an outpost to extend their delivery reach.  Regional hot dog chain Dog Haus is planning to expand nationwide but it’s newest locations won’t have a dining room or bar.  Instead they are using ghost kitchens “devoted to off -premise sales without a dining area, to grow it’s delivery footprint.”  Through a partnership with Kitchen United, concepts from Chick-fil-A to Outback to Carrabba’s and Famous Dave’s are utilizing ghost kitchens as a “strategy for growing off-premise orders without burdening their already busy store locations” The Halal Guys and Canter’s Deli have spots at Kitchen United’s Pasadena, CA location.

Virtual Brands

A virtual brand is a delivery-only food concept sold exclusively online with no physical space for guests to interact with the brand. A single restaurant can have multiple virtual brands running out of their facility with all meals produced in their existing kitchen. This model allows operators an opportunity to lean in on food trends and leverage staff and facility capabilities to create a new branded experience that extends their audience reach beyond their core concept. Some estimate there are about 100,000 of these types of restaurants currently in operation, with more being launched every day.  Take “It’s Just Wings,” a wings and deep-fried Oreo brand on Doordash, which is coming to you from more than 1,000 Chili’s and Maggiano’s kitchens.

 

It’s Just Wings/ Facebook

 

Krispy Rice, an offshoot of Katsuya, a 13-unit sushi concept originally from Los Angeles has designed a $30 bento box designed to compete against higher-end sushi delivery like Sugarfish and is currently operating out of pre-existing Umami Burger and Katsuya locations.

Krispy Rice is a new delivery-only bento box brand spinoff of the Katsuya franchise. (Source: Krispy Rice)

 

Commonalities between the Ghost Kitchens and Virtual Brands

A virtual brand could be produced within a ghost kitchen. If a ghost kitchen, or shared kitchen space offered pickup of shared outdoor dining spaces, they wouldn’t be considered a “delivery-only” brand.  However, there are distinct differences between the two and varying sales tactics to drive delivery-only sales.

 

Sales Tactics for Delivery-Only Virtual Brands 

Target Market Evaluation

For delivery only brands, you are at the mercy of your delivery radius. The radius varies based on the marketplace (Doordash, UberEats, Postmates, Grubhub etc.), but the standard is 5-15 miles or estimated drive time. Understanding your market will help you build successful menus. For example, if there is demand for hot chicken in your area – and also a void in the market, this may be a virtual brand concept to explore.

Menu Optimization

To succeed as a virtual brand, you need to ensure your menu is optimized for each marketplace platform. Each marketplace will have a different strategy to ensure success. This strategy may include creating multiple virtual brands under your brand umbrella to ensure menu segmentation. Menus should be optimized to drive profitable sales, including copywriting, descriptions, allergens, tags & menu item names.

Photography

One of the most important aspects to a successful online-only, delivery-only brand is high quality, beautifully styled and appetite appealing photography.  We do not recommend including your packaging in these photos.

Packaging

Another critical component of any successful delivery only brand is the packaging. You need to ensure your items travel well. Hot food arrives hot, and cold food arrives cold. We have all heard the frustration with how to deliver crispy french fries or pesky items like burgers properly. This can be accomplished! Work closely with your packaging representatives and ensure you select packaging with proper ventilation. Always ensure your bags are sealed and tamper-resistant.

Pricing

One of the main reasons operators do not want to join a delivery-only marketplace is high commission rates. These rates can range anywhere from 12%-30%. Most menus were never built with these types of margins in the first place, let alone now adding packaging costs into the mix. We recommend you look closely at your menu mix and either eliminate items that are not profitable or create new menu items.  If you are creating a new virtual brand, always build in the highest possible commission rate.

Menu Cannibalization

It is good to note that you never have to offer your entire menu on a delivery marketplace. You can create a delivery specific menu for the platforms and have particular menu items only available if your guest orders direct. You can also include groceries, family meals, or special “date night” menu opportunities.

Training and Consistency

Kitchen operations and consistency will be the central focal point of your virtual brand or ghost kitchen. They will need essential training materials such as a safety program, packaging guidelines, a checklist for daily operations, gluten-free and allergen training, and menu item rollouts.

Guest Connection

Not having the ability to create a guest connection in the traditional sense can be another reason brands prefer not to be on a marketplace platform. You will need to find new ways to connect with your guests. This can include a handwritten note, swag, offers to order directly, a small dessert, or anything else to show your guest you value them and are grateful they have chosen to order from you.

3rd Party Tactics

In the beginning, it is imperative to drive as many orders as you can to ensure you stay high on the marketplace algorithm. Put together a marketing budget and plan to achieve 100 orders in the first few days. This budget can include offering free delivery, BOGO deals, or  X item with the purchase of another. You want to deliver a perfect experience each time to ensure you have all positive reviews as a few negative reviews will hinder your chance of success on each platform.

By Rita Imerson

Over the last year, smart operators have modified their business model to be successful during the pandemic. Whether you operate in an area with many or few restrictions, takeout/order ahead and contactless experiences have likely been more popular than ever.

The challenge with this type of guest experience is the absence of human interaction, making it almost impossible to build guest relationships. Your team may not even interact with your guests at all, or if they do, it’s through a mask, a partition, or a pickup window.

Like many have done this year, we must be creative and think outside the box. It’s more important than ever to create and foster a more personalized experience with off-premise sales within the hospitality industry.

 

Consider introducing the following:

• Include personalized notes in takeout bags. If possible, use a branded notepad and train the takeout team to write a quick note for each order. Something like: “I hope you love the Crispy Brussel Sprouts! They’re my favorite!! Have a great night, Michelle.”
• Add photos of your team members without masks and smiling at the takeout pickup area with short bios.
• Consider management follow up on takeout orders. With most online ordering platforms, you have access to guest contact info. Train managers to take the time to personally reach out to 5-10 guests each day and ask about their takeout experience. A quick text or email:  “Hi, this is Steve, the General Manager of Fireside Grill. Just making sure your takeout order last night was great! Please let me know if you have any feedback. We truly appreciate your support!!”
• Post photos and info (of course, nothing too personal) about your team on your social media channels.
• Consider technology that notifies the guest of which team member is preparing their order (see example below).

Although we are looking ahead and planning for post-Covid operations, it’s clear that off-premise sales will remain a large and essential part of the restaurant industry. Including these types of service steps in your training can improve gratuities, improve online reviews, and impact return visits. Any investment in personalizing this part of your business will surely be valuable long term.

 

Salt and Straw includes personalized, fun messages on their takeout bags.

Philz Coffee app notifies guests of who is preparing their order.

With the stay-at-home orders in place in some states and severe restrictions on indoor dining in others, it’s no surprise that the delivery and take-out industry is booming. For many restaurants, this is their primary (if not only) source of income at the moment. As people order more take-out than ever, some environmentally-minded citizens feel very conscious of their carbon footprint by supporting local businesses. This increase in packaging has led to many Instagram users posting photos of a mountain of styrofoam and employing the sarcastic, self-aware hashtag “#sorryenvironment.”

 

The concern for being green has forced many restaurant industry leaders to consider a more long-term answer to those pesky styrofoam containers that some experts estimate take 500 years to biodegrade. This concern has led some restaurant owners and app developers to wonder: what if there could be a standardized version of a take-out container that could be sanitized and reused?

 

 

App-Based Reusable Take-out Companies

In San Francisco, a start-up called Dispatch is exploring this green endeavor. Twelve local restaurants have employed the app, which customers use to place their order, just as they would on GrubHub or UberEats. Customers pay a $1.99 added charge for each menu item, which comes in a stainless steel container, sometimes called a tiffin. These can be returned to participating restaurants and sanitized. So far, this program has seen decent success—Dispatch orders currently account for 10% of all orders to these restaurants.

 

A New York start-up called DeliverZero is exploring a similar model. The main difference is that customers do not pay an up-front fee for the containers, and they then have six weeks to return the containers to a participating restaurant. (If they fail to return the dishwasher-safe containers, they are charged $3.25 per item.) DeliverZero is hoping to expand to other major US cities, including Chicago and Los Angeles.

Restaurant-Driven Services

Some restaurants and chains have opted to remove the middleman and start their own reusable take-out service.

 

International chain JustSalad offers a reusable bowl program for its customers. The incentive? Free extra toppings. The company has a mission to strive to create zero waste by 2022.

 

CurryMobile in Ottawa has a program where they deliver their meals in tiffins to customers who opt for them. The customers then return the vessels to the restaurant. The owner of CurryMobile reports that most of their customers are groups like offices that order at least once a month. This service provides a hidden benefit of restaurants offering their own reusable take-out service: built-in repeat customers.

 

For restaurants looking to take on reusable take-out, proper use and sanitation of these containers will be essential. This could potentially become an added module to a restaurant training program for staff onboarding or continued learning.

 

Other Ways to Reduce Waste

If a restaurant is looking for ways to go greener but is not ready to change its entire operation, small changes can be made to its take-out packaging that can make a big difference.

 

Restaurants with online ordering can make it an option for guests to indicate whether they’d like extra napkins, condiments, straws, and utensils rather than giving these extras automatically.

 

Another effort towards sustainability includes a switch to recyclable/compostable take-out containers. Restaurant should look for options that do not contain certain chemicals like fluorine, which can cause harm to the environment and the consumer reheating the food.

 

When it comes to saving the environment, small efforts can make a big difference. With many customers looking to live a greener lifestyle, restaurants with a transparently sustainable options will be more likely to receive support from their community.

How will restaurants increase sales and design their spaces in the near future? Through a creative combination of historic and contemporary tools and techniques.

With the US still in the grips of COVID-19, restaurants continue to grapple with ever-changing regulations as well as shifting customer expectations. What does “service with a smile” mean when servers have to wear masks? Is the main restaurant metric still “butts in seats?” How can independent concepts be more nimble and creative to meet their customers’ needs? The solution lies in an inventive mix of classic service models, new performance measures, and the latest foodservice technology.

Low Touch and High Impact

While personal touches in restaurants are limited, restaurants are communicating with their customers in new and creative ways. True Foods Kitchen now prints language on their coasters to tell customers that their table has been freshly sanitized. Other establishments have their staff wear health check stickers dated that day to show their commitment to staff and guest safety.

With so many customers moving to take-out and delivery, restaurants can still provide a personal touch. One idea is to include a checklist completed and signed by the staff member fulfilling that order. Not only does this technique demonstrate the restaurant’s commitment to order accuracy, it also personalizes a typically “faceless” transaction.

Hospitality at its core is about warm and welcoming service. While servers’ smiles are largely hidden for the moment, operators can still make that all-important connection through inventive approaches.

Moving to Sales Per Square Foot

Current limitations on dining room capacity have left operators struggling to effectively utilize their indoor space. Restaurants lucky enough to have access to outdoor seating have moved dining outside, but with winter on the way, the doors to al fresco dining are soon closing.

Operators can now look at their dining room as part service counter and part marketplace. Many restaurants have set up makeshift pick-up stations in their dining room for prepaid online orders. Other ideas include setting up displays of grocery items, packaged sauces, and spice rubs. With the proper hot and cold holding units, operators can turn unused dining space into a mini-market, selling family meal kits, packed sides, hot soups, and marinated proteins. Instead of filling seats, think about filling your dining room with options that provide customer convenience and upsell opportunities.

Though winter is coming, don’t ignore your outdoor space and dedicated parking area for year-round opportunities to increase sales. If possible, dedicate a couple of parking spots for curbside pick-up or 10-minute parking. Consider renting all-weather party tents and freestanding heaters and create four-seasons seating. Designate a section of your parking lot for “dine in your car” opportunities. The goal is to think about your facilities, both indoors and out, and devise more ways for customers to easily do business with you.

Coupling Old-Fashioned Service with New Technology

While no one knows the long-term impact of the pandemic on restaurant size or design, large chains are looking to reinvent future locations with classic and cutting-edge devices. Last month, Burger King released 3-D animated footage of their “restaurant of the future” that visualizes the burger chain’s commitment to flexible ordering, pick-up, and onsite dining.

 

Mobile orders are held in a food locker unit reminiscent of an automat, where customers unlock their order cubby through their smartphone. A walk-up window allows guests to place an order and take their food to go without entering the restaurant. Designated curbside pick-up parking spaces integrated with handicapped parking ensures accessibility for all. The restaurant’s exterior design includes several modern touches like solar panels on parking awnings, a living wall, and a kitchen open to visitors in the drive-thru lanes. Kitchen space and flexible indoor/outdoor seating areas “float” over multiple drive-thru lanes allocated to pick-up and order placement with cash and credit card.

Besides restaurant design, the pandemic has forced restaurants to accelerate their thinking about technology. Obviously, the Burger King restaurant of the future will be heavily reliant on an integrated technology system that links POS with inventory management, third-party ordering platforms, and KDS—a solution more easily integrated by large concepts. Independent operators frequently rely on bargain systems with limited integrations, making the integration of a holistic technology solution a big challenge.

Convenience was already a huge restaurant customer trend before COVID-19. Nowadays, convenience has morphed into a critical need. Operators of all sizes must consider a heightened reliance on technology moving forward.

Some Things Never Change

While today’s pace of change has operators’ heads spinning, the core principles of hospitality haven’t changed. Listening to customers and responding to their needs, wants, and expectations will never go away, but the ways restaurants respond and express their commitment is a moving target. Most of all, making it easy for customers to do business with you now takes a village of online and offline branded touchpoints that keep customers engaged, reassured, and coming back.

For more ideas about future restaurant trends and sales tactics, check out our webinar with The Howard Company.

A number of big restaurant chains have seen their sales skyrocket during the pandemic — now they’re inventing their own “independent” concepts

While the current upending of the restaurant industry has flattened many independent restaurants, big chains like Domino’s, Del Taco, and Wing Stop have seen their sales surge. These multinational concepts possess better quality technology and coveted drive-thru’s, and their substantial resources have allowed them to easily pivot to the new normal. Now they’re pushing ever forward to satisfy customer’s perennial desire for comfort foods while borrowing a page from today’s trends.

Brinker International, parent company of Chili’s and Maggiano’s Little Italy restaurants, launched It’s Just Wings earlier this summer. This delivery-only virtual concept takes advantage of unused kitchen capacity in 1,000 company-operated Chili’s and Maggiano’s around the country. The hyper-focused menu of wings, sauces, fries, and one dessert is only available for delivery through DoorDash.

The brand itself possesses the swagger and simplicity of an upstart independent, with its slogan of “killer wings, stupid prices.” Wings are available as bone-in, house-smoked bone-in, or boneless, accompanied by a range of chef-inspired sauces like Apple BBQ and Truffle Hot Sauce. Brinker is upfront about the brand’s origin — likely to avoid the controversy that Chuck E. Cheese faced on social media when customers found out that the chain had covertly created their own virtual brand, Pasqually’s Pizza and Wings1. The brand story that Brinker spins is focused on the creativity of their chefs to develop a menu that could be prepared quickly with popular items that travel well.

With the pandemic effectively shutting down most traditional dine-in service locations, Brinker has made a smart move by pivoting kitchen capacity as their own “ghost kitchen” and leverage the exploding popularity of chicken. Furthermore, by using their chefs for targeted menu development, a few marketing dollars for an identity and website, and undoubtedly negotiating a favorable percentage with DoorDash, Brinker has paved the way for building a rapid concept prototype.

Will other restaurant chains like Brinker fill the rapidly shrinking independent void with similar offshoot brands? The longer dine-in traffic is limited or forbidden, the harder it will be for emerging chains to stay in business. For entrepreneurs looking to jump into the restaurant industry once the COVID brush fire has swept through the country, it would be wise to look at Brinker’s model for future growth.

We often speak about trends among the Millennials. It’s hard to ignore this segment—after all, this is a generation that is 75 million strong in America. By 2019, Millennials are expected to outnumber Baby Boomers. Restaurant operators need to take particular care to attract and sustain this important cohort. Millennials are driving dining trends including the growing off-premise segment.

According to ROTH Capital Partners’ 2018-2019 Millennial Survey, they found that:

• Millennials believe the economy will be the same or better next year
• More than half have decreased their social media usage over the last year
• Only 26% of Millennials would prefer not to share personal information for a more tailored experience
• Two-thirds of Millennials prefer to research significant purchases online, but 57% still prefer in-store transactions
• 27% of Millennials are comfortable purchasing groceries online
• 62% of Millennials are Amazon Prime members
• More than one-third of Millennials have an Amazon Echo, Google Home, or similar product and 24% of those use them to regularly make purchases
• 15% Millennials have used virtual reality (“VR”) to evaluate furniture purchases, while 16% have used “virtual mirrors” to try on makeup or clothing
• More than half of Millennials belong to traditional fitness clubs while 28% attend classes at boutiques
• Climbing, hiking, yoga, and cycling are among the most popular fitness activities for Millennials

You can read the full report by requesting the survey here.

These key findings tell us several things: Millennials are optimistic regarding the economy; they like and are open to technology when it comes to making purchases and decisions; they are health-conscious, and they enjoy convenience. What, as restaurant owners and operators, can we learn from this? For one, is your menu reflective of the Millennial values? Are you offering healthy dishes? Are your marketing strategies using technology to help attract this segment? How is your brand resonating with this crowd?

There are many actions you can employ to ensure you’re catering to Millennials. For more information or help on your restaurant strategy, please contact Synergy.

Milan is often regarded as the fashion capital of the world. However, every two years, professionals in the hospitality industry flock here to preview innovations in food and beverage. While attending the 2017 HOST show in Milan, Danny and I were able to check out the latest and greatest in restaurant technology and also traverse our way throughout Italy feasting our taste buds in delight.

 

Here at Synergy, we like to call ourselves the “pizza experts,” but that doesn’t mean we aren’t open to different methods of pie-making! To be successful means to have an open mind to new ideas and innovations. This brings me to our exploration of pizza oven technology at the HOST show.

 

Sure, we all know that a delicious crust typically comes out of a wood-fired oven, but… I had an amazing pizza that actually came out of an electric oven! The crust turned out beautifully and of course, the flavor was spot-on. In the spirit of good eats and ideas, I wanted to share all that you need to create a young, non-aged dough that delivers a great tasting and looking pizza.

Ingredients:

• Double O flour
• Water
• Salt
• Fresh Yeast

And by the way, there is NO sugar or oil required.

The moral of the story today? It’s amazing what is possible when you open your mind to exploring new and innovative ideas!

When you plan an outing with friends, it’s safe to say that most of the time, a restaurant is involved. A nice little café or dessert spot may do the trick if a full meal is too heavy. Socializing around food is perhaps one of the quintessential communal activities in recorded history. Some even spend their time at eateries as a “third place” to get studying or work done.

 

Examples of social eateries that offer community, as well as food and drink, can be found throughout history (think saloons). Today, it seems there’s a new revival of this concept.

 

A recent Restaurant Hospitality article details some new restaurant gathering places that center on socializing. In Atlanta, you can stop by Foundation Social Eatery where you will find a large open kitchen and not a single T.V. screen in sight to encourage conversation among patrons and the chef.  In New York City at Social Drink & Food, customers can mingle with others on the rooftop terrace, or they can relax on beach chairs or play a few rounds of beer pong.

 

People are looking to restaurants as a means to connect with others and it’s clear this trend is just beginning to grow. If you’re seeking a revitalization of your restaurant or need to find a strategy to turn your spot into a welcoming gathering place, please contact Synergy Consultants.

The Culinary Institute of America just wrapped up their 19th annual Worlds of Flavor® conference and festival, World Flavors: Casual by Design. The highly anticipated event featured culinary experts and renowned chefs from around the globe sharing delicious food and insights with hundreds of attendees. (Fun fact: Did you know that the founders of Synergy Restaurants Consultants are both CIA trained chefs?)

 

Every year the conference features a different theme. In 2016, the cuisines of Europe and the Americas had the spotlight while the 2015 event focused on Asian foods. This year, the emphasis was on high-quality food served in casual settings. During the three-day conference, an abundance of culinary knowledge was shared. Here are some of the topics from workshops and seminars: 

• China in Motion: Tradition Meets Fusion in New Casual Settings
• When Peruvian Cuisine Goes Global: Innovation Opportunities for Millennial Diners
• Designing our Future: New Models and Approaches for Casual Dining
• The Business of Markets and Food Halls: Strategies and Recipes
• What Does Hospitality Mean in the Casual World?
• True Thai Flavors: The Casual Road to Michelin Stars

 

Check out this video of highlights from CIA WOF 2017

At Synergy, we are always abreast of food trends and new ways to become efficient as a restaurant operator. If you have questions regarding developing your casual concept or improving your current operation, please contact us.

Ever try going out to eat with a group of friends but can’t agree on a place? Mary wants Greek, but Tim’s craving Thai. Susan, however, has a hankering for New York style pizza. Well, the food hall is your answer, and they’re on the rise!

Think of a food hall as a reinvented food court that delivers an immersive food experience, rather than just a place for a quick bite after a day of shopping. Food halls act as a gathering place for people to try various cuisines from different food stalls. Inspired by the eclectic charm of veteran urban food centers like Chelsea Market in New York City and The Original Farmer’s market in Los Angeles, savvy developers are re-defining the food court and incubating new concepts to produce a rich dining experience beyond the city center. By reducing their footprint and sharing a roof and common space, new concepts and can reduce their start-up costs and share in the success of neighboring eateries by gaining visibility. The “Veto Vote” is moot when there are options to suit multiple palates, price points and dietary needs, especially when the space is anchored with an appealing central dining area.

Having a food hall presence is a great way for restaurant operators to showcase a single product or platform like outrageous doughnuts, the most amazing porchetta sandwich and unique takes on poutine. Diners create their own food adventure amongst the variety, perhaps by starting with a drink at one location, then moving to another spot for a first course or dessert. Diverse menu offerings encourage team eating, wherein each member of the group orders from a separate concept, then meets at a communal table for sharing and sampling. Operators capitalize on this phenomena by offering limited menus, specializing in one menu item and doing that item extremely well, effectively becoming the subject matter expert in that item.

Check out 8 food halls arriving on the scene, via restaurantbusinessonline.com – you might find one in your area! Nearby Synergy’s headquarters we find a couple of exciting food halls opening soon—SteelCraft in Long Beach, Calif. will feature merchant specializing in ramen, pizza, waffles, Hawaiian shave ice, coffee, chocolates and more. Trade Food Hall in Irvine, Calif. will serve up fried chicken, fish and chips, ice cream, and gyros to name a few.