Close Ad

The Spoon

Daily news and analysis about the food tech revolution

Kroger

Food Tech News: New Meals from Sun Basket, a Dr. Pepper Shortage, and Virtual Concession Stands

These days, food tech news is flying by at breakneck speed — sort of like how I’ll be doing this weekend on my paddle board. Before that can happen, though, here are a few last bits of intel from the past week to keep you up to date on your food tech, whether you’re spending the weekend lakeside, curbside, or on your couch. Just don’t plan on a Dr. Pepper to go with it.

Sun Basket launches no-prep meal kits.

Meal kit company Sun Basket this week launched its Fresh & Ready line of products, which the company says can go straight into the microwave or oven and be ready in as little as six minutes. This new line is available as part of Sun Basket’s weekly meal plan subscription, and maintain the company’s focus on fresh, organic ingredients sourced from family-owned farms.  

Refill brings virtual concessions stands to Ohio high schools.

Refill, a company that makes virtual concession stand technology for things like sporting events, announced this week it is testing out its platform in Ohio high schools. The system uses features like contactless ordering and payments to make the process of grabbing grub during a ballgame more efficient and socially distanced.

Kroger is launching a marketplace strategy.

Kroger will double its online grocery inventory through a new digital marketplace strategy. The move, which is an obvious bid to compete with Target, Amazon, and other online heavyweights, will initially focus specialty retailers with natural, organic, and international products. The launch will also include housewares, toys, and other items.

There’s a Dr. Pepper shortage. 

Hang tight, soda lovers. Dr. Pepper had to reassure fans this week that its products would be back on store shelves in full force soon. “We’re doing everything we can to get it back into your hands,” the company tweeted, adding that it’s working with distributors to do so.

Publix Has Ambitious Plans to Get More Hydroponically Grown Greens in Its Stores

Back in 2019, we predicted that hydroponically grown greens would soon become a mainstay of grocery stores in the U.S. We did not predict that a global health crisis would disrupt the supply chain and make consumers hyper-aware of where their food comes from and what goes into growing it, but that’s exactly what happened. The result? Hydroponic farming’s march into the grocery store has been accelerated.

Perhaps no one is pursuing this shift more seriously than grocery retail chain Publix, whose Greenwise brand has partnered with Brick Street Farms to locate a shipping-container-turned vertical farm at one of Greenwise’s brick-and-mortar markets in Florida. 

The 40-foot shipping container (see image above) sits outside the Greenwise market in Lakeland, Florida. Like other vertical farming operations, it uses hydroponics to grow leafy greens without the use of soil or pesticides. Greens are packaged onsite and travel mere feet to reach the produce section of the store.

Speaking on the phone this week, Curt Epperson, Business Development Director of Produce and Floral for Publix, and Albert Gottuso, Category Manager for Produce at Publix, highlighted the advantage of this method over traditional means of getting produce in the store. Most of Publix’ conventional leafy greens are grown in California and have to travel thousand of miles before they reach store shelves. Besides the obvious lower carbon footprint, growing greens onsite also uses less water than traditional farming and means fresher greens on store shelves compared to those that are harvested shipped, and hydrated before they ever reach the produce section.

But hydroponic greens were on the Publix agenda long before the deal with Brick Street Farms. During our call, Gottuso said the company has maintained relationships for years with local hydroponic farmers to sell greens in its stores. For instance, Livingston, TN-based Tanimura & Antle sells its butter lettuce at Publix stores in that state.

“This hydroponic product out of nowhere became our best seller for leafy lettuce,” he said. That in turn led the chain to consider how it could supply hydroponically grown greens to more of its locations. 

Multiple efforts are currently underway. Earlier in 2020, Publix partnered with Vertical Roots on a mobile vertical farm customers could interact with. In March, the chain teamed up with large-scale vertical farming company Kalera.

All of these efforts fit into Publix overall hydroponic program, which Epperson says is still testing different techniques in terms of getting indoor greens to local stores. 

Gottuso added that the chain is expanding this hydroponic program so that every state has a grower with an indoor farm supporting local stores in its area. “Our goal is that every store that we service has a local hydroponic program that can offer an assortment of variety of blends,” he said. 

This push towards local, more sustainably grown greens is happening across the grocery sector. Kroger has a partnership with Berlin-based InFarm, which puts its vertical farming pods in the store’s produce section. And just this week, San Francisco-based Plenty announced a partnership with Albertsons to sell its greens (which are grown offsite in a warehouse) at that retailer’s store.  

Publix doesn’t plan to stop at leafy greens. Though they are by far the most popular product to grow hydroponically, Epperson suggests there is potential for cucumbers, tomatoes, and peppers, among other produce types. 

As to whether or not hydroponic farming could ever replace traditional farming, at least in terms of leafy greens, Epperson noted that the jury is still out. “It’s very difficult to get the yield you would get in conventional growing,” he said. Calling it “blue sky” thinking, he pointed to a day when Publix might have vertical farms located next to all of its distribution centers. And that idea isn’t exactly unattainable — Square Roots is already doing something similar with Gordon Food Service. 

The introduction of technology to the greenhouse could also play a big role in making hydroponics more widespread in the grocery sector. Gottuso says technology allows companies to build greenhouses in areas where they historically haven’t been (like the Southeast). These large greenhouses also provide the scale needed to supply the shelves of a major grocery retailer because they are “adept to growing larger amounts of produce.”

If Publix’ ambitions around hydroponics can do likewise and scale effectively, we can expect many more locally grown greens — and other produce types — to hit store shelves in near future.

Food Tech News: Kroger Pilots Contactless Pay, How QSRs Could Change the Whole Food System

Had your fill of food tech news for the week? Of course you haven’t. With that in mind, here are a few more bits and bites to carry your appetite for food tech through the weekend.

Kroger Launches Contactless Payments

Kroger launched a pilot for contactless payments in Seattle, WA this week. The test will take place in the grocery retailer’s QFC division, and allow customers to use their mobile phones to pay for groceries. The system accepts a number of payment types: Apple, Google, Samsung, Fitbit, and mobile banking apps. 

Microsoft and Land O’Lakes Bringing More Tech to Rural Areas

Farming technology is all well and good, but farms first need to have access to broadband. As AgFunder points out, 18 to 40 million Americans do not have that connectivity, especially those in rural areas. To address that issue, Microsoft and Land O’Lakes said this week they are working together to bring more connectivity to farms and rural areas.

Hostess Opens Innovation Lab

Hostess Brands has opened a new innovation lab in Kansas that employs researchers, product testers, and bakers creating new kinds of snack cakes. The lab will test and develop new prototypes for food products, which means we could well have a new kind of Twinkie in our hands in the future.

How about now no cow?

If QSRs swapped beef with alternative proteins in their products, they could completely alter the food system. That’s the premises of an excellent new article from Wired, which outlines the problems with our over-reliance on beef and how fast-food chains can use their wide availability and low prices to change consumer attitudes about meat.

Report: Plant-based Meat Sales Increased 23 Percent When Sold Next to Real Meat

Sales of plant-based meat products increased 23 percent when those products were sold in the same department as traditional meat, according to a newly released study from the Plant Based Foods Association (PBFA) and Kroger.

The study ran from December 2019 to February 2020 in 60 Kroger test stores across three states: Colorado, Illinois, and Indiana. Plant-based meat products were placed “in a three-foot set within the meat department,” according to the study. 

Results varied by region. In the Midwest stores, where widespread adoption of plant-based meat is only just beginning to catch, sales were up 32 percent. Stores in the Denver, CO area, which the study says “already had a high concentration of plant-based consumers,” saw a 13 percent increase.

Other notable stats from the study include:

  • Shoppers purchasing a wider variety of plant-based meats increased by 33%
  • Shoppers increased their number of purchase occasions by 34%.

This rise in purchases of plant-based meat products isn’t too surprising, given the recent overall spike in demand. But retailers are still determining which section of the grocery store plant-based meat products belong in, and depending on where you go, they could be int he vegan section, with the organic meat products, or with regular ol’ Big Meat. 

Despite demand, plant-based companies have gotten pushback over the last year or so from Big Meat over labeling their products as “meat.” In 2019, the PBFA actually sued Mississippi over the state’s restrictive labeling rules, which originally prevented plant-based meat companies from using terms like “burger” or “hot dog.” Those laws were overturned in Mississippi, but Arkansas, Missouri, and other states have passed similar legislation. What labeling laws are in any given state will inevitably affect where plant-based products wind up in the grocery store.

Of course the debate of where to put plant-based meats may be rendered less important if current trends in grocery shopping continue. Online shopping is still popular, and the uptick in coronavirus cases may ensure it stays high for some time longer. At the same time, leading plant-based meat companies like Impossible and Beyond have launched or are planning to launch direct-to-consumer sites. Though to be honest, you’d have to be a pretty dedicated fan of those products to take the time to buy in bulk directly. For plant-based meat companies looking to reach newer flexitarians and casually curious consumers, the grocery store aisle — and specifically the meat aisle — remains their best bet.

Kroger to Build Three Robot-Powered Fulfillment Centers in the Pac. Northwest, Great Lakes and West Regions

Kroger announced today that it will be building robot-powered fulfillment centers in the Pacific Northwest, Great Lakes and West regions of the U.S. This expansion marks the first such robot warehouses to be situated on the west coast.

These smart warehouses use technology from U.K. grocer Ocado to automate the process of online grocery order fulfillment. Kroger is taking a centralized approach to such fulfillment, building out 20 robot centers in various locations across the U.S. to serve as hubs for customer delivery.

Other retailers are taking a more localized approach to automated order logistics, choosing instead to build out micro fulfillment centers in the backs of existing neighborhood supermarkets. Albertsons and Ahold Delhaize both have partnerships with Takeoff Technologies to build these types of centers, while Walmart is using Alert Innovation for a similar experiment.

The speed of online grocery order fulfillment has definitely become more of a priority during this pandemic. Quarantining has driven record online grocery sales over the past few months, but retailers were ill equipped to handle the deluge of new orders. The result has been out of stock items and massive delays in delivery windows.

The question, however, is, will those online grocery shoppers remain after the pandemic recedes. Companies like Kroger and Albertsons are making big investments in automated fulfillment, but once we get back to “normal,” which definitely won’t be the old normal, will people want to go back into the grocery store to pick out their own food?

Kroger’s march towards automation predates the pandemic by a long shot, so current fluctuations driven by the coronavirus probably aren’t driving too much of its implementation. Besides, the first of Kroger’s robot warehouses isn’t even scheduled to open until early 2021, so there is time for grocers and shoppers to figure out any new preferences to grocery shopping.

Food Tech News: Kroger to Accept SNAP for Pickup, KFC China Goes Plant-based

It can be a bright spot to think that even when everything is turned upside down in the food world, companies are still coming up with creative ways to stay afloat and help folks have access to healthy food.

In this week’s food tech news roundup we’ve got stories on just that. There are bits about Kroger ramping up SNAP acceptance for pickup, healthy meal services pairing up with fitness classes, and KFC in China dipping its toe into plant-based meat. Enjoy!

Kroger to accept SNAP payments for grocery pickup
Kroger will accept Supplemental Nutrition Assistance Program (SNAP) payments at all 2,000 of its grocery pickup locations by the end of the month (h/t FoodDive). Consumers can select the “SNAP/EBT” option when ordering groceries online, then use their EBT card to pay for covered items when they pick up. Thus far, the service is only available at the chain’s Ohio stores. This comes as Kroger bulks up its pickup service, adding slots, hiring workers, and waiving pickup fees.

Photo: Trifecta

Meal service Trifecta partners with Basecamp Fitness
Trifecta, an organic premade meal delivery service, is teaming up with Basecamp Fitness to deliver healthy meals to their members’ doors. Per an email sent to The Spoon, Trifecta will offer subscribers six types of meals — keto, paleo, vegan, etc. — as well as an à la carte section that operates like a miniature online grocery store. Trifecta is already geared towards healthy, fit people looking to eat to sustain their workout, so it makes sense to partner with a fitness service that’s essentially a captive audience (literally and figuratively).

Photo: KFC

KFC to offer plant-based fried chicken in China
Yum China, the parent brand of KFC, announced this week that it would begin selling plant-based fried chicken at select KFC locations in China. The nuggets will come from Cargill, which only recently launched its own alternative meat brand, and will be available in three locations from April 28-30th. A five-pack of the nuggets will cost 1.99 yuan ($0.28 USD).

How Kroger’s Data Arm is Bringing Food as Medicine to the Masses

Ever wonder how a company as huge as Kroger can possibly tap into a trend as focused on the individual as personalization? The short answer: lots and lots of data.

That’s why we’re so glad to have Brian Kathmann, Director of Commercial Platforms, Healthcare for Kroger’s data arm 84.51°, on board to speak at our food personalization summit Customize later this month. He and Bridget Wojciak, a nutrition expert for Kroger Health, will do a deep-dive into how the grocery giant is analyzing data to help consumers eat to meet their specific health goals using nutrition scores, food recommendations and more.

It’ll be a fascinating discussion into how big corporations are starting take concrete steps to capitalize on personalization, specifically within the food-as-medicine realm. (Hot tip: Use code SPOON15 to get 15 percent off your tickets.)

If you want a taste of what’s in store, check out our Q&A with Kathmann. Enjoy, and we’ll see you in New York!


Tell us a little bit about 84.51° (which is part of Kroger)
Our interesting name, 84.51°, represents the longitude of our headquarters in Cincinnati, but it’s also a nod to our longitudinal approach to understanding our customers and personalizing their experiences.

We excel at challenging convention and pushing beyond the limits of what’s comfortable with fearless hearts and limitless minds. Our goal is a relentless customer-first commitment; we put customers first in everything we do.

At 84.51° you guys are all about data. How do you collect and leverage consumer data to better optimize product offerings?
We look for ways to serve up unique and amazing customer experiences using cutting-edge science and technology. We gather and analyze data from more than 60 million U.S households across 35 states, resulting in meaningful insights and executions that drive business results.

Using a proprietary suite of tools and technology, we deliver unparalleled data science and predictive analytics to transform customer data into actionable knowledge. And we deliver personalized marketing strategies for our Kroger customers and more than 1,400 consumer-packaged-goods companies.

Food as medicine is a growing trend in the grocery space. How are you working to tap into that at 84.51° and, by extension, at Kroger?
A great example of how we’re (Kroger and 84.51) enabling customers to bring “Food as Medicine” to life is through the OptUp score and App. We know with nearly endless food options; it can be challenging for our customers to make healthy choices.

The science and personalization behind OptUp is to solve that customer problem and make it easier for our customers to shop. OptUp simplifies healthy shopping, by providing easy to use nutrition scoring and food recommendations based on what YOU buy.

OptUp enables users to also track their nutritional progress overtime, offer healthier coupons and incentives, and allow users to make wholesome choices for the entire family, right through the app, and soon – through our APIs to other partner platforms and Apps.

What do you think personalized food or drink will look like 5 years down the road?
A great question… if only I had a crystal ball! We know it will continuously evolve and must be unique to the individual, and personalized to their choices, their goals, on their time, and through their preferred channel. We will remain relentlessly customer first focused and utilize our science to meet them where they’re at AND make it easier for them to live healthier!

Kathmann will join Bridget Wojciak of Kroger Health on the Customize stage to do a case study on how the grocery giant is tapping into personalization. Get your ticket to join us (use code SPOON15 for 15 percent off).

Kroger Is Testing ‘Food as Medicine’ With Food Prescriptions for Customers

Kroger is testing a new concept where doctors can write food prescriptions their patients then fulfill at one of the grocery chain’s stores with the help of a Kroger Health professional, according to an article from Supermarket News.

The pilot launched last spring in Kroger’s hometown of Cincinnati, OH. In its current form, diabetes patients work with a local physician who makes dietary recommendations they can then take to a nutrition expert at a Kroger in Forest Park, OH. The prescription itself is actually just a shopping list of food items that have been tailored to the patient’s specific medical condition.

But as Bridget Wojciak, RDN/LD, a nutrition expert at Kroger, told Supermarket News, the program is much more comprehensive than a shopping list of food items. An in-store dietitian can make recommendations based not only on the food items on the prescription but also around the individual patient’s lifestyle, budget, and skill level when it comes to cooking. 

“We find that a lot of physicians give difficult-to-follow nutrition advice — along the lines of ‘You should improve your diet’ or ‘You should eat better.’ And that becomes very difficult for a patient to understand and implement,” she said, adding that a food prescription is a way to “fill the gap” between a doctor’s recommendations and the actual food customers will take home.

The program also involves using Kroger’s OptUP mobile app, which scores food items in the store based on their nutritional value and lets users track their progress when it comes to improving their diets over time. 

Kroger joins a growing number of companies across the food industry making products and services that address everything from lifestyle choices to dietary habits to chronic illness. Meal kit-like services, such as those from Epicured, are another tactic to getting healthier to consumers’ homes, as is prepared meal delivery from virtual restaurants that focus on food as medicine.

Food prescriptions filled at grocery stores provide a unique and arguably more enticing introduction to the food-as-medicine concept because they can be tailored to an individual’s needs and preferences when it comes to food, cooking, and dietary preferences.

For now, Kroger Health is focused on diabetes patients but could eventually expand to include other conditions, such as cancer and heart disease. And one can easily envision a future where Kroger is able to use its muscle in the grocery delivery area to fulfill food prescriptions and deliver the items to patients who may not be able to leave the house due to illness. 

Nor does the concept and Kroger Health have to be restricted to treating illness. Though rather a broad term, food as medicine can also be as much about preventative care as it is about treating existing illness and chronic disease. Kroger doesn’t yet offer prescriptions for those looking for more preventative food solutions. However, given the chain’s focus of late, which has included launching its own line of plant-based products and putting vertical farms in stores, that day is probably not too far off in the future.

Wojciak will be speaking at Customize, The Spoon’s upcoming daylong summit on food personalization, in just a few weeks in NYC. Grab your tickets to the event here.

Food Tech News: Nestlé’s Plant-based Partnerships and a Kroger Podcast

Happy winter weekend, all. Hopefully wherever you are has some fresh Snow, clear skies, or a fire in the fireplace. One thing it definitely has: some food tech news.

In this week’s roundup we have stories on Nestlé’s new plant-based partnerships, a fresh podcast from Kroger, and a personalized nutrition report. Enjoy!

Nestlé partners with Canadian plant-based ingredient makers
It looks like Nestlé has taken another step into the alternative protein space. This week the New York Times reported that the Swiss CPG company has teamed up with two Canadian plant-based ingredient manufacturers: Burcon and Merit Functional Foods. The deal will give Nestlé new resources to expand and improve its alternative protein products, such as the soy- and wheat-based Incredible burgers which are currently available in Europe.

Kroger unveils new podcast “Noshtalgia“
For those who love their podcasts with a side of groceries, there’s a new option to add to the listening queue. Kroger has launched a podcast called Noshtalgia which features stories of people sharing their food memories (h/t GroceryDive). Hosted by cookbook author and TV personality Danielle Kartes, the podcast is intended as a medium for people to share their favorite family recipes — and, ya know, promote a place to buy the ingredients for said recipes (cough, Kroger, cough). The first episode, “Poppy’s Waldorf Salad,” is already live wherever you get your podcasts.

Report indicates huge potential for personalized nutrition
This week USB released a report stating that personalized nutrition could generate annual revenues of $64 billion by 2040 (via CNBC). The report calls out big-name companies, like Uber and Amazon, who should be investing more in the space.

There’s a ton of buzz around this topic, which is why we’re organizing a food personalization summit in NYC next month! Called Customize, the event will feature speakers in CPG, grocery, restaurants, and more talking about how they’re harnessing personalization to create the future of food. If you’d like to join use code SPOON15 to get 15 percent off tickets!

Kroger Building Next Ocado Automated Fulfillment Center in Frederick, MD

Looks like grocery shoppers on the west coast hoping for an automated warehouse to fulfill their grocery orders will have to wait a little bit longer. Kroger announced today that its next Ocadao-style robot-powered fulfillment center will be in Frederick, MD.

Kroger is building 20 of these smart warehouses, but none so far have made it out west. Other cities getting automated fulfillment centers include Monroe, OH, Groveland, FL, Forest Park, GA, Dallas, TX, and Pleasant Prairie, WI. Frederick appears to be the vague “mid-Atlantic” location the company had previously announced.

These automated fulfillment centers use robotic totes on rails to assemble online grocery orders. Kroger, which is an investor in Ocado, is taking more of a standalone approach to automated grocery fulfillment, building out entirely new, separate facilities. Other retailers such as Albertsons are building out automated micro-fulfillment centers in the back of existing retail locations.

Online grocery shopping is still a small percentage of overall grocery shopping, but its growing. Automated fulfillment centers like the ones Kroger is building have the potential to boost online grocery’s slice of the pie by offering faster turnaround of online orders (and thus, create more orders).

All these systems are just coming online over the coming months, so it remains to be seen how people will engage with them. Additionally, we’ll have to see if there is a difference in convenience and shopper adoption between standalone facilities and in-store ones (or some combination of both).

Kroger shoppers living in Baltimore, Washington D.C. and Philadelphia being served by the new Frederick facility won’t actually be that far ahead of the west coast. The new warehouse won’t open until 24 months after groundbreaking.

Vertical Farms Will Become Key Parts of Your Grocery Store and Your Kitchen Cabinets in 2020

At this point we can expect vertical farming to play an important role in our future food system — one that goes beyond selling greens to upscale markets in gentrified urban neighborhoods. Exactly what that future role looks like is less certain as we move into 2020. Commercial-scale vertical farms, which grow millions of heads of greens in warehouses and shipping containers, still has a lot to prove in terms of economics and scalability.

While the industrial-scale model continues trying to prove itself in 2020, the place we may see the most compelling developments for vertical farming in the next year is actually in the consumer realm. E. coli outbreaks and bleached salad (among many other factors) have contributed to an uptick in consumer demand for fresher food that’s traveled fewer miles between the farm and the table. If the last year taught us anything, it’s that putting the farm is right next to your table, or at least at your local grocery retailer, is becoming a popular strategy for providing healthier, more traceable greens to consumers, and that trend will continue in 2020.

With startups, grocery stores, major appliance-makers, and others now exploring this area, some of these developments are already happening.

In your grocery store.

Many companies are now looking to shorten the supply chain between the farm and the consumer when it comes to produce. One way is to put the farm right in the grocery store. These aren’t massive facilities growing millions of heads of lettuce. Rather, they’re typically standalone, highly modular pods or units that can be set up right in the produce section. 

German startup InFarm highlighted this approach in 2019 when it partnered with Kroger to place units in 15 of the grocery retailers stores. The company also partnered with UK retailer Marks & Spencer for a similar venture in Britain. 

Another route is for farming startups to partner with major food distributors, as Square Roots has done by building farms near or on Gordon Food Service’s distribution centers. Gordon operates 175 of these across North America, and proximity to those facilities means Square Roots can get its greens distributed to a larger selection of grocery retailers.

In your kitchen cabinets. 

Indoor farms that fit in the home aren’t new. There are plenty of standalone, tabletop, or wall-mounted devices out there that let the average consumer grow greens year-round. What is new is that major appliance-makers are now exploring the possibilities of indoor farming as not another gadget for the kitchen but an integral part of that space’s design. 

We saw this recently when Miele acquired the assets to Agrilution, whose automated Plantcube farm is meant to be built right into the kitchen cabinetry. Just yesterday, LG announced it will be showing off its own in-kitchen smart farm at CES 2020 in a couple weeks.

These aren’t going to be cheap products. Plantcubes cost €2,979 (~$3,300 USD), and that doesn’t include the extra money tacked onto your energy bills each month for things like water and electricity. (LG hasn’t released pricing details yet.) Most likely, these in-cabinet farms will debut in new, single-family homes with ample amounts of space in the kitchen. As more appliance-makers develop products and team up with home retailers (IKEA, I’m looking at you), we’ll likely see the price point on these farms come down and the concept go a little more mainstream. 

Spoon Market Map: Ghost Kitchens in 2019

Just half a decade ago, the phrase “ghost kitchen” referred to restaurants that looked legit on Grubhub and Seamless but were actually digital fronts for unregulated kitchens. In other words, chicken tenders from what appeared to be a local restaurant might actually have been cooked in someone’s apartment.

Then the delivery boom went off, thanks largely to the growth of third-party services like Grubhub and DoorDash, and by the many digital channels through which customers could suddenly get food. Order tickets proliferated for restaurants, but so too did the stress around how to fulfill those orders without over-burdening the in-house kitchen staff.

The answer to the problem? Take the restaurant out of the kitchen.

In the last few years, restaurants have been moving many of their operations around delivery and to-go orders to dedicated kitchen spaces outside the main restaurant location. The name “ghost kitchen” has stuck around, but now it’s a health-department-friendly term for these spaces that act as hubs for off-premises orders.

But actually, there are many names nowadays for the concept: ghost kitchen, virtual kitchen, cloud kitchen, the (slightly nauseating) description “kitchen as a service.” All those phrases amount the same thing: a kitchen facility that exists solely for the purpose of helping restaurants cook and fulfill to-go orders and get them into the hands of delivery couriers. There is no dining room or front-of-house staff in a ghost kitchen, the tech-stack is more streamlined than that of a full-service restaurant, and, increasingly, the location is completely separate from a restaurant’s dine-in location(s). Now, too, there are also kitchens on (literal) wheels, which add yet-another piece of mobility to the business model. 

To help you navigate the evolving world of ghost kitchens, we’ve created a market map for your reference. This market map is intended to be a snapshot of the current ghost kitchen landscape in 2019. It’s not comprehensive, and we expect both it and the overall landscape to change drastically over the next 12 months. That means you can expect to see this map updated regularly. As always, we welcome suggestions for additional companies and players in this space.

Have suggestions? Drop us an email.

1. Kitchen Infrastructure Providers

The largest category in ghost kitchens right now, Kitchen Infrastructure Providers can be likened to cloud computing providers: they rent companies the space and tools needed to run a business, either as a flat-fee model for on a pay-as-you-go basis. 

Kitchen United, for example, charges a monthly membership fee that includes rent, equipment, storage, and services like dishwashing. Reef, which originally made a name for itself reinventing the concept of the parking garage, offers these things as well as direct partnerships with major third-party delivery companies like DoorDash and Postmates.   

Normally these facilities are large, warehouse-like buildings that hold multiple “restaurants” under a single roof. For large restaurant operators with multiple chains looking to fulfill extra demand brought on by delivery or test out new concepts without incurring too much risk, these are ideal.

Multi-unit chains can also use these spaces to reach customers in areas where they might not have a brick-and-mortar store. Chick-fil-A is widening its reach in the SF Bay Area by working out of DoorDash’s newly opened facility.

2. Restaurant-operated Kitchens

For some restaurants, running a ghost kitchen operation themselves makes more sense than teaming up with a third-party kitchen provider. This is often the case with smaller, independent restaurants, whose ghost kitchen might consist of nothing more than an area of the restaurant’s existing location(s) dedicated to fulfilling off-premises orders. Or it might apply to multi-unit chains who simply want to expand to new areas and don’t have the capital or inclination to deal with the burden of a full-service restaurant. Colombian chain Muy is one such company, having started as a dine-in restaurant before expanding its ghost kitchens to serve more areas of Latin America.

The most notable of all the companies in this category right now is Starbucks. In addition to building out “to-go” stores that exist solely for the purpose of fulfilling off-premises orders, the company has also partnered with Alibaba to turn parts of the latter’s Hema supermarkets into ghost kitchens in China.

The boundaries around this category are especially fluid. In other words, just because you operate your own ghost kitchen in one part of the country doesn’t mean you can’t team up with a third-party provider in another, as The Halal Guys and Chick-fil-A have done.

3. Virtual Restaurant Providers

This is where the lines really start to blur between restaurant, kitchen provider, and delivery company. Anyone can make a virtual restaurant, and as the category in our map shows, more than just restaurants are trying their hand at food concepts that can only be ordered through digital channels and are prepared in a ghost kitchen. Whole30, for example, is a diet concept better known for its cookbooks than its dealings with the restaurant industry. The folks behind that brand teamed up with Grubhub and restaurant company Lettuce Entertain You to create a virtual restaurant offering meals with Whole30-approved foods. 

On the other hand, a company like Keatz runs a network of virtual restaurants it houses beneath the roof of its own ghost kitchens. Taster, based out of France, creates native restaurant brands for food delivery companies like Uber Eats and Deliveroo. Food is cooked in Taster-run kitchens.

4. Mobile Kitchens

In slightly more its own category, companies like Ono Food Co. and Zume are creating robotic, self-contained kitchens on wheels that offer restaurant experiences that can be tailored to specific neighborhoods in a city and also plug into third-party delivery services.

Restaurants can also partner with these kitchens on wheels to expand their reach into new markets, as &Pizza has done by teaming up with Zume.

What’s Next for Ghost Kitchens

Ghost kitchens will become the norm for multi-unit chains. With off-premises orders expected to drive the majority of restaurant sales growth over the next decade, multi-unit brands (think Panera, Chipotle, etc.) will find ghost kitchens a cost-effective way to meet this demand without overburdening existing restaurants. The majority of them will rent space from kitchen infrastructure providers, as Chick-fil-A is currently doing with DoorDash. 

There will be an explosion of delivery-only brands. Since ghost kitchens provide a cheaper, faster way for food entrepreneurs and small restaurants alike to test-drive new concepts, we will see an influx of delivery- and pickup-only brands come out of these kitchens over the next year. Many will be born inside the walls of facilities like Kitchen United or CloudKitchens. Meanwhile, the number of virtual restaurant networks like that of Keatz will increase. 

Artificial Intelligence will be designed into the kitchen. AI is a really broad term that’s often misused. That fact aside, its presence in the restaurant industry is here to stay, and in ghost kitchens, it will prove itself valuable for everything from tracking ingredients to helping staff curb food waste. On the consumer end, we expect to see the technology more deeply integrated into the apps and websites from which customers order, improving recommendations and upselling opportunities.  

More non-restaurant food brands will launch virtual restaurants. In keeping with a trend recently made popular by Whole30 and Bon Apétit, food brands, diets, celebrity chefs, and other non-restaurant businesses will team up with third parties to launch delivery and pickup concepts. Grubhub and Uber Eats are two such third parties already doing this. Expect many more such partnerships — soon.

Bonus: The tech stack will get pared down. No front of house means no POS, right? Quite possibly. With less (or no) customer-facing technology like digital menu boards, self-order kiosks, and tabletop ordering, much of the restaurant tech on the market today becomes irrelevant in a ghost kitchen setting. As the folks at Reforming Retail noted recently, “under this scenario the POS is just an ordering node in the cloud that outputs your menu to a consumer and sends orders to your kitchen.”

That doesn’t mean restaurant tech is going by the wayside. Some ghost kitchens, like those of Muy, have a walkup option where customers order at kiosks onsite, and there will doubtless be new solutions created that are specifically for the ghost kitchen. But the tools of tomorrow’s ghost kitchen won’t look a thing like today’s bloated restaurant-management tech stack. For everyone involved, that’s a bonus.