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Ghost Kitchens

March 31, 2021

C3 to Bring Ghost Kitchens to Residential Buildings

Ghost kitchen/virtual restaurant network C3 (Creating Culinary Communities) today announced a partnership with apartment operator Akera Living to place ghost kitchens inside the latter’s Kenect communities.

Kenect bills itself as a combination coworking space, social club, and residential community that’s become increasingly popular in urban settings over the last few years. Since the idea seems to be to jam as many amenities as possible under one roof, ghost kitchens were bound to show up in this setting sooner or later.

For Kenect properties, C3 kitchens will not only serve up delivery-only meals to residents, they will also provide food and drink for Kenect’s lobby bars, building cafes, and pool areas. For residents ordering in, C3’s virtual restaurant brands will be available.

The company will launch its kitchens in summer 2021 at Kenect buildings in Nashville, Tennessee and Phoenix, Arizona, with upcoming locations planned for more U.S. cities soon. 

The partnership is not unlike C3’s deal with Graduate Hotels, which was announced earlier this year. For that partnership, C3 is taking over the hotel chain’s culinary spaces and converting them into “multi-branded kitchens” that will serve C3 virtual brands to hotel guests and community residents. 

The company’s expansion tactic is somewhat unique in the ghost kitchen world right now. Whereas most ghost kitchen-virtual food hall operations are currently in standalone facilities that require cars to deliver the food, C3 seems to want to bring the ghost kitchen as close as possible to customers. This concept of making a ghost kitchen a standard amenity on high-end properties isn’t widespread yet, though it will probably become so quickly, at least within the luxury property format. Whether it can translate to other settings remains to be seen.

March 29, 2021

iKcon Raises $20M to Expand Its Ghost Kitchen Network

Ghost kitchen provider iKcon announced over the weekend that it has raised $20 million in Series A funding. The round was led by Mohamed Yousuf Naghi Group, AlTouq Group, Derayah Ventures, B&Y Venture Partners, AbdulMohsin Al Houkair Holding Group, and Nazer Group. and brings iKcon’s total funding to date to $32 million.

Dubai-based iKcon, which was founded in 2019, says it will use the new funds to expand the company’s ghost-kitchen-as-a-service model to new markets, starting with Saudi Arabia. Currently, iKcon operates 15 cloud kitchens across the United Arab Emirates; it plans to grow that number to 50.

The iKcon model differs a little bit from many ghost kitchen operations in that it handles everything for restaurants, from staffing to cooking to actually delivering the food. In the company’s own words, it “acts as a franchisee” on behalf of the restaurant, and provides services for both brick-and-mortar brands as well as virtual ones. (Kitopi is another notable example of a ghost kitchen network using this model.)

Its proprietary tech stack is another important selling point of iKcon’s business. Part of the company’s funding will go towards further building out the technology side of the ghost kitchen, focusing specifically on those tools that can automate more processes and in doing so ensure better quality and consistency of the food as well as faster speed of order times.

Those elements are important for a ghost kitchen that’s acting as a franchisee for the restaurant. Under this model, restaurants part with a lot of control over their food and brand, since they’re not the ones actually cooking and fulfilling the orders. Being able to assure those restaurants that a high-quality, consistently good product will arrive to customers on time will be an important point for iKcon to get right as it expands into new markets.

March 21, 2021

Food Tech Show Live: Online Grocery & Massive Alt-Protein Funding

This week the Spoon editor team (joined by special guest Tom Mastrobuoni of Big Idea Ventures) jumped on Clubhouse to talk about some of the biggest stories of the week.

Here are the stories discussed on this week’s show:

  • Online Grocery Weee! Raises $315M Series D Round
  • Cloud Software for Cloud Kitchens: Grubtech Raises $3.4M
  • GFI: $3.1 Billion Invested in Alternative Proteins in 2020, Tripling the Money Raised in 2019
  • The NFT Pizza Party is Here

If you’d like to join us for the live recording of our food tech news weekly review, make sure to follow us our club, Food Tech Live, on Clubhouse.

And, as always, you can listen to the recording of the wrapup via our podcast feed on Apple Podcasts, Spotify or wherever you get your podcasts or just click play below. If you are a regular listener of the show, make sure to give us a review on Apple Podcasts!

March 21, 2021

Ghost Kitchens! Fee Caps! Igloos! Tracking the Restaurant Biz’s Changes Over the Last 12 Months

For the majority of restaurants around the U.S., last week marked the one-year anniversary since stay-at-home mandates initially forced dining rooms to close down. What’s followed has been 12 months of great uncertainty, loss, and struggle. But it’s also been a time of astounding resilience and creativity, with restaurants and restaurant tech companies alike have pivoted and shape-shifted to survive the times. 

We’ve been checking in with individuals from both spheres to see where these businesses are now and what’s most useful in terms of tools and tactics as dining rooms slowly reopen and the world goes back to some version of “normal.” 

But to better appreciate how far we’ve come and how much work has gone into this industry’s survival over the last year, I’d like to pause and take a brief look back in time at some of the major stories from these last 12 months.  

March 2020

  • States across the U.S. mandate dining room shutdowns. Restaurants large and small scramble to make the overnight shift to delivery and takeout formats.
  • Restaurant tech companies start offering software and services free of charge to restaurants. Third-party delivery services like Uber Eats and Postmates waive some fees — though not without some controversies.
  • Restaurants like Canter’s Deli, Wahoo’s Fish Tacos, and Torchy’s Tacos discuss strategies for going off-premises. Some include paring down menus, prioritizing takeout meals, and going DIY when it comes to the drive-thru.

April 2020

  • Restaurant tech slump: Toast lays off 50 percent of its workforce and McDonald’s slows development of its tech-forward store remodels. 
  • Cities across the U.S. address third-party delivery’s exhorbitant fee caps with the same solution: fee caps, fee caps, and more fee caps.
  • But Chipotle is fine, thanks to a long-term focus on digital.
  • “Make technology your friend” is an oft-repeated piece of advice as restaurants prepare to reopen.

May 2020

  • Presto, Sevenrooms, and other front-of-house focused tech companies start offering their so-called “contactless” software kits for the dining room.
  • The buffet is dead. The first wave of to-go-only store formats starts to emerge from previously dining room-centric brands.
  • Fee caps can’t save restaurants from third-party delivery practices.

June 2020

  • Some restaurant chains, including Panda Express, start to launch their own in-house delivery services.
  • Restaurants get really creative with their ideas on how to safely reopen dining rooms.
  • This Latin American startup teaches us how to run a restaurant from a mobile phone. (Hint: everyone will do this in the future.)

July

  • Euromonitor predicts ghost kitchens will become a $1 trillion market by 2030.
  • Chipotle is still doing fine, and leading the QSR industry-wide shift to drive-thru centric stores.

August

  • Winter is coming. Restaurants start to experiment with outdoor dining solutions for colder temperatures. Said solutions include tends, glass houses, heat lamps, and igloos.
  • Ghost kitchens, digital ordering, and back-of-house technology become the “hot topics” in restaurant tech. Ditto for virtual restaurants.

September

  • QSRs start to release new store designs that feature more curbside parking spaces, multiple drive-thru lanes, and little to no dining room space.

October

  • The in-house delivery versus third-party delivery debate further heats up, with many encouraging restaurants to take back control of their digital orders.
  • Crave Collective and others put a fine-dining spin on the ghost kitchen and virtual restaurant concepts.

November

  • California passes Proposition 22, which lets third-party delivery services classify their couriers and drivers as independent contractors and keeps these companies from having to pay workers comp, health insurance, and other benefits.
  • Investment in back-of-house technology grows as both restaurants and restaurant tech investors realize the foreseeable future of the industry is in the kitchen, not the dining room.

January 2021

  • The year kicks off with a slew of new virtual food halls, ghost kitchen concepts, and an automat designed for the digital age.

Feburary

  • In a good sign for restaurant tech recovery, Toast bounces back and is planning an IPO. Olo files to go public.

March

  • President Biden signs the $1.9 trillion American Rescue Plan, which includes $28.6 billion in relief grants for small restaurants.

Obviously this brief timeline isn’t comprehensive, since there’s no way to really capture the true scope of the last 12 months in a single newsletter. It is meant to be a snapshot only of the change and turns the industry took over the last year.

Which is where you, readers, come in. Whether you’re part of an eating establishment, tech company, or an avid foodie, we would love to hear your restaurant experiences over the last year. Drop us a line at tips@thespoon.tech.

Restaurant Tech ‘Round the Web

Nation’s Restaurant News has a new gallery showcasing stories “from the front lines” of the restaurant industry — that is, the restaurants themselves. NRN has compiled first-hand accounts of owners, managers, brand executives and others about their experiences from the last year.

Restaurant Dive has an ongoing analysis of the state of restaurants one year later across a number of U.S. cities. Available so far are in-depth looks at Los Angeles, New York City, and Seattle. More to come.

Grubstreet looks at lessons the New York City restaurant scene has learned over the last 12 months, and what comes next.

March 7, 2021

The Big-Box Ghost Kitchen Is Here

A couple weeks ago, college was the latest potential growth market for ghost kitchens. Today, it’s big-box retailers like Walmart.

Recently an Ontario, Canada-based company called Ghost Kitchens launched its first-ever location inside a Walmart store in the city of St. Catherine’s. It’s not the first-ever ghost kitchen concept from the company, but it is Ghost Kitchens’ first time to operate from within the four walls of a major retailer. And it further blurs the lines between the restaurant, the grocery store, and the convenience mart. 

Ghost Kitchens’ facilities carry a variety of items, all of which are relatively easy to prep and transport to customers. Those include CPG goods like Ben&Jerry’s ice creams, meals from QSRs like Salad Works, and shopping mall standards like Cinnabon. Customers can order these items through certain third-party delivery platforms or pick them up inside at the Walmart in which the facility is located. Additionally, customers can bundle different items from different brands into a single ticket.

And speaking of bundling, the Ghost Kitchens-Walmart deal is another example of a trend brought on by the pandemic but likely to stick around for the long haul: giving customers the option to digitally order multiple different food formats from a single place.

The idea got popular by necessity in 2020, after the pandemic forced restaurants to close dining rooms and businesses resorted to selling their food inventory as groceries to customers as a means of making extra money. 

Since that time, ghost kitchens have become a kind of norm in the restaurant biz, digital ordering has increased (and will continue to), food producers everywhere have launched direct-to-consumer e-commerce stores, online grocery shopping has grown, and convenience stores have inked deals with delivery companies. All of those factors have converged to underscore a single point: consumers ideally want to find the majority of their food items, whether it’s a burrito or a bunch of kale, in a single place, literally and digitally speaking.

Ghost Kitchens’ Walmart concept is a bit like a real-life illustration of the above factors coming together, but it’s not the only company helping to blur the lines between the restaurant, the convenience store, and the grocery market. ClusterTruck, a virtual-only restaurant company, operates ghost kitchens inside Kroger stores. H-E-B has a food hall for delivery meals. DoorDash has its own “ghost convenience stores” that are basically like 7-Eleven without the storefront.

Sticking a ghost kitchen inside a Walmart makes sense because Walmart does big grocery business, in addition to selling every other physical object imaginable. It seems like only a matter of time before retailers like Target, Sam’s Club, and others follow suite. 

To be clear, this won’t be the territory of high-end, or even sort of high-end meals crafted by chefs. Rather, it’s another example of the ghost kitchen’s ever-evolving role, which will eventually serve much more than the restaurant biz.

Restaurant Tech ‘Round the Web

There are drive-thru lanes, and then there are bike-thru lanes. Dunkin’ unveiled its first-ever version of the latter in Quezon City, Philippines, and has reportedly gotten rave reviews for it. The QSR says it will expand the concept to other Dunkin’ locations in the Philippines.

Yum Brands, parent company of KFC, Taco Bell, and Pizza Hut, acquired AI firm Kvantum for an undisclosed sum. Yum said in a statement the acquisition will allow it to improve its marketing campaigns and data analytics around consumer behaviors.

Many restaurant operators don’t expect to return to “normal business conditions” any time soon, according to new survey data from the National Restaurant Association. Thirty-two percent of operators think it will be 7-12 months, and 29 percent say it will be more than a year. Ten percent say business conditions “will never return to normal for their restaurant.”

March 1, 2021

Walmart in Canada Is Getting a Virtual Food Court Thanks to Ghost Kitchens

Ghost Kitchens, a Canadian company that operates, uh, ghost kitchens, this morning announced a new partnership to bring its concept to Walmart stores in Canada. The first location, in St. Catherines, Ontario, is open now. Additional locations are slated to open across Ontario and Quebec “in the coming months.”

Ghost Kitchens’ concept is part grocery store, part QSR, part mall food court in terms of what it offers. The company carries a variety of items from well-known QSRs and CPGs, among them Ben&Jerry’s, Saladworks The Cheesecake Factory’s Bakery chain, Cinnabon, Beyond Meat, and Jamba Juice. All items are prepped and fulfilled at Ghost Kitchens’ facilities.

Customers can bundle items from any of these brands into a single order, which can be placed either in-person or via a third-party delivery service. (Ghost Kitchens lists partnerships with Uber Eats, DoorDash, and Skip the Dishes on its website.) The company operates several of these facilities in Canada, with some standalone locations and some inside malls and big-box retailers like Walmart.

Speed appears to be the motivating force here. Ghost Kitchens’ food offerings are all simple, easy-to-fulfill items that don’t require Michelin-star chefs to create or special packaging to transport. “Our goal is to open a Ghost Kitchen every 12 kms across Canada, and be able to reach every Canadian, in every urban market within 30 minutes, 24/7,” said company President Marc Choy, President. That seems entirely possible when cheesecake, salad, and ice cream are the main staples on your menu.

It’s yet-another take on the ever-evolving concept of the ghost kitchen, which continues to evolve both as a format and with the types of food served. Nowadays, there seems to be a ghost kitchen for everything, from  burgers and cocktails to caviar and stoner food. 

Future Ghost Kitchens locations in Walmart stores are planned for 2021, including those in Woodstock, Lachenaie, Saint-Constant, and more in Toronto.

February 21, 2021

College: the Next Big Frontier for Ghost Kitchens

New bits over the last couple weeks have sent my brain right back to college — specifically to the college dining hall, where myself and others (everyone) used to steal food to take back to our dorms to eat between meals.

OK, I’m not sure that actually classified as stealing, since we were all on prepaid meal plans. But you weren’t allowed to take food out of the dining room, so the act of sneaking, say, a couple oranges and a jumbo ziploc bag of cereal out the door was practically an art form among the student body population.

Gen Z will likely not have to jump through that particular hoop when it comes to getting fed in between regular mealtimes. I was recently reminded of this possibility when news dropped that foodservice provider Chartwells plans to launch a ghost kitchen program across the colleges and universities it supplies.   

Chartwells has already piloted the program at a few schools, including the University of Utah and Seattle University. The idea is to find underutilized kitchen spaces on campus and turn them into ghost kitchens that serve students delivery and pickup meals ordered via the Chartwell’s mobile app.

While the long-term relevance of ghost kitchens is still a hotly debated topic in the the wider restaurant industry, the format seems to be a no-brainer for school campuses. 

As my food-theft story above anecdotally illustrates, students eat at all hours of the day and night, and often those weird hours are out of necessity (e.g., studying late, extracurricular commitments, etc.) Campus dining halls rarely accommodate those hours. Nowadays that leaves students at the mercy of DoorDash or Uber Eats, which, particularly with the newly hiked fees, gets expensive quickly. There’s always, of course, the option to hop in the car and hit the drive-thru, but that takes time and, depending on the restaurant, costs a fair amount of money, too.

Instead of leaving students to the mercy of surrounding restaurants, schools have an opportunity to work with their foodservice providers and offer meals in a wider variety of formats at more times throughout the day and night. The kitchen infrastructure already exists, most notably at dining halls that only operate at specific hours. Those spaces could easily double as kitchens that fulfill pickup and/or delivery orders in the off hours. Schools might even make money off such an operation. 

Meals, meanwhile, could count towards a student’s overall meal plan, and adding a mobile app component, as Chartwells has done, would simplify the entire process. Another approach would be for a school foodservice provider to partner with a third-party mobile app company, as Aramark did with Good Uncle in 2019. Via the Good Uncle app, students at participating schools can browse meals and order them for delivery. The app’s “Flexcash” system is a declining balance that can be re-upped by the student (or their parent) at any time. From there, it functions just as a meal card for the dining hall would.

Food robots, of the small, six-wheeled variety, could also prove themselves a valuable part of the campus ghost kitchen operation. Companies like Starship and Kiwibot can already be found roving about multiple university campuses. In fact, both companies have existing partnerships with yet-another foodservice provider, Sodexo. One can easily imagine one of these roving bots carrying food from an on-campus ghost kitchen to the student’s dormitory or to a centralized pickup point on campus.

A final point in favor of ghost kitchens on campus. We hear often that delivery and takeout can’t replace the restaurant experience, which is true, because eating soggy fries from a cardboard box is decidedly not an experience. But campus dining halls aren’t exactly known for five-star meals, and much of the food served up in these places is already well-suited to travel. There may even be room for improvements in menu offerings, something Chartwells appears to be looking at through its program.

Does all this potential for ghost kitchens, tech, and the like spell the death of the campus dining room? Not likely. In fact, this particular on-premises format is ripe for its own digital reinvention, from automat-style lockers to robot vending machines and even tools in the back of house that can better monitor food safety and food waste. All said and done, there’s arguably enough room for innovation within format as there is beyond it.

Food Tech ‘Round the Web

Meanwhile, over in the regular restaurant world, ghost kitchens are not the future, according to this thoughtful analysis from Grubstreet writer Rachel Sugar.

Also, forget Guy Fieri. White Castle is opening a delivery-only kitchen in downtown Orlando, Florida, which will be in operation next week.

And if you read nothing else in this newsletter, check Eater’s comprehensive coverage on how to help feed those impacted by the Texas winter storms.

February 18, 2021

Campus Foodservice Giant Chartwells Brings Ghost Kitchens to Colleges and Universities

Chartwells Higher Education, a foodservice management company, announced today it has launched its ghost kitchen program for college and university campuses. Chartwells has already piloted the program at a handful of schools, including Seattle University, SUNY Buffalo State College, the University of Utah, the University of Texas at Dallas, and San Jose State University.

Working with these schools, Chartwells developed several new meal concepts appropriate for delivery. For example, the company worked with Seattle University to open a ghost kitchen that tested 12 rotating entrees and desserts, which students could order via the existing Chartwells mobile app. Since most of Seattle University’s physical campus was closed during Fall semester 2020, the ghost kitchen pilot also served as a test for how colleges and universities can provide students with food even when dining halls are shuttered. Meals were available for both delivery and contactless pickup.

Chartwells said more than 24,000 orders were placed via its mobile app within the first month of the Seattle University test. Terry Conaty, Resident District Manager at Seattle University, said in a press release that the partnership was a “win-win” because it provided students with “lots of new menu options without having to add additional personnel resources or compromise our social distancing guidelines.”

Chartwells serves more than 300 campuses. The company says this ghost kitchen program will add to rather than replace existing dining options. The idea is to take advantage of any underutilized kitchen space on campuses that can be turned into ghost kitchens.

Historically, few would have called college and university campuses hotbeds for food tech innovation. That has slowly started to change over the last few years with the rise of apps like MealMe and Good Uncle (the latter of which was acquired by foodservice giant Aramark), the presence of delivery bots on campus, and Gen Z’s inherent familiarity with a more tech-driven eating experience. 

Nor is Chartwells the only company bringing ghost kitchens to campus. Last month, hospitality platform C3 joined forces with Graduate Hotels to put more ghost kitchens in college towns. 

The ghost kitchen format is an obvious fit for the college and university market. Students eat meals at all hours of the day and night, a schedule the traditional dining room’s hours don’t typically accommodate. And on the note of dining rooms, there’s no telling whether the traditional cafeteria-style setup will exist once classes shift back to the physical campus. Social distancing will have to be considered when it comes to those spaces, and some students may not feel safe eating in a dining room. Colleges and universities will have to provide alternative options, including pickup and delivery.

Schools, too, are brimming with underutilized kitchen space. For smaller campuses, a few would suffice when it comes to serving the entire student body. For larger schools, one can imagine a network of ghost kitchens placed strategically around the campus, each serving different sets of dormitories and apartment blocks. Meals ordered from campus ghost kitchens could even count as part of a student’s meal plan, which would be considerably cheaper than someone having to order from DoorDash every night.

When schools go back in session very much depends on each individual institution. Many are doing hybrid online-offline sessions right now. The many new food options for students seem geared towards both accommodating these fluctuating schedules and a bid by schools to keep pace with the changing times for foodservice. 

January 28, 2021

C3 Will Launch Its Virtual Food Halls Inside Graduate’s ‘College Town’ Hotels

Food and bev platform C3 (Creating Culinary Communities) this week announced a new partnership with Graduate Hotels to launch the Graduate Food Hall digital kitchen concept. For the venture, C3 will bring its ghost kitchen and virtual restaurant hybrid to Graduate Hotels, which are located in America’s college towns, in the first quarter of 2021. 

C3 operates a number of virtual restaurant brands, including Krispy Rice, the delivery-only version of Umami Burger, a collaborative plant-based concept with Impossible, and a caviar bar. The company prepares all orders in its own network of ghost kitchens, which is steadily growing. For instance, C3 just acquired 22 former locations of the now-shuttered chain Speciality’s and plans to convert those into kitchen spaces. 

For the Graduate partnership, C3 said it is effectively taking over onsite food operations at Graduate properties. Graduate’s hotel kitchens will be converted into “multi-brand kitchens” that can house several C3 restaurant concepts at once. Both hotel guests and those in the surrounding community will be able to order delivery meals and those for takeout. There will also be some seating in hotel lobbies and gathering areas.

The U.S. hotel industry had its worst year on record in 2020 in terms of both lows in occupancy and revenue because of the COVID-19 pandemic. Data provider STR noted that hotels passed the 1 billion rooms unsold mark in 2020, the highest in the industry’s history, and that the first half of 2021 will likely be similar (though conditions are expected to improve in the latter half of this year).

Setting up a virtual food hall that can serve both hotel guests and surrounding homes, schools, and businesses opens up potentially more revenue opportunities for Graduate. At the same time, Graduate’s locations, which are all in major “college towns” around the U.S., will expose C3 and its virtual restaurant brands to a huge number of potential users because of the proximity to universities. 

The first implementation of the Graduate Food Hall is expected to debut in Berkeley, California as well as Richmond, Virginia and Tempe, Arizona. Additional locations will follow.  

January 26, 2021

Wow Bao’s Virtual Restaurant Concept Will Grow to 1,000 Locations in 2021

Wow Bao’s partner kitchen program, which lets other restaurants make and serve its food products, will reach 1,100 locations by the end of 2021, up from 150 now, according to a press release from the company. The anticipated milestone highlights another format of virtual restaurant emerging as restaurants take more business off premises.

Via the partner kitchen program, restaurants cook some of the Wow Bao brand’s signature items — buns, bowls, potstickers, etc. — then sell them on the usual third-party delivery channels. Wow Bao CEO Geoff Alexander told me last year that the idea is to provide any type of restaurant with a relatively easy way to add some much-needed revenue.

“We believe we have created something restaurants can survive with,” he said at the time.

Restaurants pay a flat fee to participate (~$1,000) that covers supply chain, marketing, and any extra equipment needed. From there, Wow Bao’s food is marketed on third-party delivery platforms via an entirely separate menu from the restaurant’s own. The restaurant makes the food and sends it out for delivery. Today’s press release notes that restaurants maintain about 40 percent of the revenue from each order, even when factoring in things like packaging costs and third-party delivery fees. 

Wow Bao’s idea for the partner kitchen program actually predates the pandemic’s widespread presence in the U.S. However, the concept is an appropriate one right now, given the wreckage COVID-19 has brought to the restaurant industry in the form of dining room restrictions and lost sales. 

The ghost kitchen and virtual restaurant concepts have, in general, proliferated over the last several months. But for restaurants that don’t have a ton of extra money to spend on a major lease with a more traditional commissary, an option such as Wow Bao’s partner kitchen is a promising alternative that doesn’t require a lot of physical space or operating costs.

Wow Bao said in today’s press release that these partner kitchens are especially successful in rural areas, where “food variety is more limited than in metropolitan areas.” Most restaurants, rural or otherwise, have surpassed the expected sales mark of $2,500 in six weeks. 

A new partnership with digital marketplace Franklin Junction will add another 50 Wow Bao partner locations around the Northeast and Mid-Atlantic, while a nationwide expansion is expected to take place in the first half of 2021.

January 22, 2021

What’s After Ghost Kitchens? The Ghost Bar, Of Course

With ghost kitchens now a mainstay in the restaurant biz, it’s only ever been a matter of time before someone took the concept and applied it to the bar scene. Two NYC restaurant owners did just that recently with the opening of Ghost Bar, an online cocktail bar now available to certain parts of Manhattan.

In a press release sent to The Spoon, Ghost Bar’s owners said the point of their concept is to provide specialty cocktails users can get delivered to their own homes in roughly the same amount of time (or less) it would take to get an order from, say Grubhub.

Speaking of Grubhub, users can either order drinks from that service, Postmates, and HungryPanda, or from Ghost Bar’s own website. Where the ghost kitchen concept comes into play is with the bar’s centralized (and undisclosed) location, where cocktails are made and bottled to order before going out for delivery. The concept isn’t terribly different from ordering a juice or smoothie and getting it delivered to your doorstep, something New Yorkers have done for years.

Ghost bar menu items range from classics (old fashioned, sidecar) to in-house specialty drinks, to some beer and wine. Drinks start at $12, which is on par with what you’d pay for a well-crafted cocktail at a Manhattan bar. However, this being a delivery-only operation, users will also need factor service fees and tip into the cost of their drink. Ghost Bar also adds a $5 delivery fee. Whether the bottle sizes are larger than the average cocktail is unclear, as Ghost Bar doesn’t list bottle size in ounces.

That’s not a cheap way to grab a couple of cocktails, so if you’re planning on drinking a lot in a single evening, consider other options. However, for smaller gatherings or random Tuesday nights when you just want a freshly made fancy drink, the concept could prove popular, at least with the folks that can afford to spend $30-plus bucks on a couple drinks.

Currently, Ghost Bar delivers to 66th Street and below in Manhattan from 11:30 a.m. to 10 p.m. daily. The concept will expand to all of Manhattan and tri-bourough areas in the coming months.

January 21, 2021

Black Box Intelligence: December 2020 Restaurant Sales Were the Lowest Since July

The fourth quarter of 2020 was bad for restaurant sales, with December being “the worst month” since July, according to the latest data from Black Box Intelligence, which shared the information in its monthly Nation’s Restaurant News update.

By December, same-store sales growth fell to -13.3 percent year over year, while same-store traffic growth clocked in at -18.6 percent. In comparison, same-store sales in November were at -10.3 percent and same-store traffic growth at -16.3 percent.

Black Box noted that multiple factors contributed to poor sales numbers for restaurants in November and December. Those included a hike in COVID-19 cases and new dining room restrictions as a result of those rising case numbers. It being wintertime, colder weather limited or eradicated outdoor dining options in many parts of the country, further contributing to lagging sales numbers.

Despite the poor sales numbers, Black Box suggests that restaurants “were successful” in raising guest sentiment for their brands in December. 

Ambience, which in this case relates a lot to cleanliness and transparency around safety procedures, saw the largest improvement in terms of guest sentiment: “Meeting or exceeding [guests] expectations for safety is rewarded with positive feedback online.” 

Somewhat tricker is sentiment around the actual food. Food sentiment “dropped considerably” from November to December. This occurred simultaneously alongside a rise in off-premises orders and a slowdown in dining room sales due to the aforementioned restrictions. As Black Box states in this latest report, sentiment around food has “always been significantly lower” than food in the dining room. 

Restaurants have grappled with the challenge of maintaining quality food in a takeout environment since the pandemic first shut down dining rooms nearly a year ago. Tactics for better to-go food include things like paring down menus to the basics and completely redesigning menus to feature delivery-friendly fare.

Off-premises orders are now the major money-maker in the restaurant biz, and will likely continue to be for some time. The simultaneous rise of ghost kitchens only adds to this focus on delivery and takeout formats. All of which is to say that restaurants must continue to improve their to-go food, regardless of what happens to same-store sales over the next few months.

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