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Green Summit Group

July 31, 2018

Delivery Is Making These Restaurants Literally Redesign the Way They Do Business

As the country’s appetite for food delivery grows and the market inches towards a projected $15.9 billion by 2020, restaurants are under pressure to adapt.

More and more, that means altering the physical restaurant space so it can better accommodate this influx of new orders. Extra meals require extra bodies to cook and package the food, after all, not to mention extra space for third-party devices, and somewhere to put completed orders waiting to be picked up by a delivery driver.

It’s wishful thinking to believe that a food delivery industry standard will emerge, since every business has its own unique space — and therefore, its own unique needs. Instead, restaurants are trying out different approaches; some on a large scale, some on a smaller one. A handful of promising ones have emerged when it comes to creatively solving the space issue.

For those with room to expand, creating a separate entrance and/or delivery area is one option.

Cheddar’s Scratch Kitchen just opened a location in Ft. Worth, TX that includes “Cheddar’s first dedicated carry-out area.” It’s close to the kitchen but separate from the main dining room and has its own entrance with direct access to the parking lot. For a Grubhub or UberEats driver, this is a potentially huge timesaver, as picking up an order no longer involves weaving through crowds around the bar and flagging down an employee’s attention.

Velvet Taco conceptualized a separate entrance for to-go orders long before the delivery boom went off. The Dallas, TX-based chain offers its famed “backdoor chicken” order, where customers stroll up to the back door, hand over $20, and get a bag of goodies in return, rotisserie chicken and tortillas included. Adjusting for more delivery orders was just a matter of routing them along the same path. Third-party services (Velvet Taco works with several of the usual suspects) collect orders at the back door of the chain’s Austin, TX location. Meanwhile, a brand-new Dallas, TX location also includes a pickup window that can be accessed via a dedicated parking lot.

If a second door isn’t an option, there are still plenty of ways to work with space inside the restaurant’s four walls.

Culiver City, CA-based Tender Greens divides its customers into two lines: one for walk-ins, one for delivery and order-ahead takeout. That logic applies to the kitchen as well, where cooks are split into two separate lines so those prepping in-house orders aren’t bogged down by the number of tickets for delivery. At the chain’s El Segundo, CA location, even the furniture pulls double duty: a bartop functions by day as a counter for preparing to-go orders, then becomes communal seating for sit-down customers. Ditto for Tender Greens’ flagship NYC location at Union Square, which features 14-foot shelves, separate from the dining room, where third-party delivery services can grab their designated orders and go (a nearby area provides the same convenience for customers picking up food).

Some restaurants are scrapping dining room altogether. Enter the ghost kitchen, the cloud kitchen, or whatever you want to call it. These establishments operate with delivery-only models, where there’s no front of house and cooks serve up orders solely for delivery drivers to pick up.

The Green Summit Group gets a lot of press in this space for its commissary kitchens in NYC and Chicago, which work exclusively with Grubhub. These guys basically run multiple “restaurants” whose operations are housed in the same kitchen and whose food is cooked by the same chefs.

There’s an economical attraction to ghost kitchens, of course. Those using ghost kitchens don’t have to worry about buying equipment, hiring a new staff for every new location, or even providing simple things like cutlery and tablecloths. Businesses who can’t, or don’t want to, deal with these elements or lock themselves into a 10-year lease and buy their own equipment can also look to folks like Kitchen United, who operates a shared kitchen space available for hourly or monthly rent which can house up to 15 restaurant operations. “When a restaurant operator comes to a KU kitchen, they get a virtual restaurant solution,” Kitchen United CEO, Jim Collins told Chris Albrecht a few months ago.

So is the dining room dying? Absolutely not. Dining out as an experience will be with us until customers run out of money or the Food Network runs out of celebrity chefs to create. Anyway, delivery wasn’t designed to replace the Michelin star, or (probably) even the Olive Garden; it’s just an easier, faster way to get a basic dinner without having to go to much trouble. Restaurants are starting to realize its importance and adjust their spaces accordingly.

December 4, 2017

The Latest Virtual Restaurants Dish Up Concepts That Would Make Mom Proud

Restaurant delivery service has steadily improved over the years, thanks to the likes of Seamless, Postmates, and UberEats. But it’s only been relatively recently that restaurants have begun to think of delivery as a primary business model, rather than an add-on service.

One such company is The Madera Group, who last week joined the virtual restaurant movement when it launched Modern Organics Mexican, otherwise known as M | O | M. The service is a cross between the Los Angeles-based company’s upscale Toca Madera restaurants and its fresh-casual counterpart, Tocaya Organica. More importantly, it’s a delivery-only restaurant specializing in high-quality, organic foods chosen because they, according to The Madera Group, “travel well.” Because nothing’s worse than ordering a burrito online and receiving a soupy mess falling out of its tortilla.

The service will be available from 5 p.m. to 12 a.m. for Angelinos, and will feature “homestyle” Mexican food sourced from organic ingredients. Delivery will be available via Postmates and UberEats.

Part of the inspiration for the service came from the huge success The Madera Group’s other restaurants have had with those third-party services. A service that catered to the delivery-only crowd seemed like the natural next step in the evolution of the brand. “M|O|M is an entirely new, delivery-only concept for us to bring more options for fresh, delicious and most of all, convenient Modern Organic Mexican to our customer’s doorsteps,” said Tosh Berman, CEO and Cofounder of The Madera Group. 

The virtual restaurant an increasingly popular trend, especially in big cities like LA, where real estate prices are surging and many mom-and-pop businesses have shuttered because they can’t afford the rent. Virtual restaurants that rely on “ghost kitchens” eliminate the challenge of paying for dining room space, outside parking, and other features we expect with sit-down restaurants.

UberEats, of course, has been a huge influence on restaurant operators moving to a delivery-only model, and will even help these establishments broaden their businesses. Take Chicago’s Si-Pie Pizzeria, for example. UberEats had been doing business with the restaurant for about a year when they approached owner Simon Mikhail and asked him to start offering fried chicken. Apparently, there was an unmet demand for the stuff in Mikhail’s neighborhood. Working with UberEats, he created the delivery-only Si’s Chicken Kitchen, which is available through the app and has no physical location. As of October, sales of fried chicken have already surpassed delivery sales for the original pizzeria.

Then there are companies like the Green Summit Group, whose main focus is providing delivery services out of its commissaries around New York and Chicago. The company works off an exclusive deal with Grubhub/Seamless. Talking to Fast Company earlier this year, founder Peter Schatzberg pointed out that one of the advantages of operating a virtual restaurant is the ease with which you can switch concepts. If, for example, Mediterranean food isn’t selling, try sushi instead. “That ability to maneuver and build new brands is exponentially easier on a cost basis,” he said.

Even corporate chains are jumping on board. Earlier in November, Red Robin, that staple of suburban shopping malls everywhere, started testing a delivery-only restaurant in downtown Chicago.

And those places are a tiny fraction of what’s now available to consumers. Seriously, there are probably enough virtual restaurants at this point to form a Zagat Guide category in many cities. And if a restaurant like M|O|M proves successful, healthy, quality ingredients could become the new standard for virtual restaurants. At the very least, M|O|M will ensure that when you choose “burrito” from the menu, something that actually resembles one will be what shows up at your door.

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