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Virtual Restaurant

November 15, 2021

Kristen Barnett Launches Hungry House, an ‘Anti-Ghost Kitchen’ Ghost Kitchen

It seems a day doesn’t go by nowadays without a new ghost kitchen concept popping up.

While all that growth can be exciting, the ghost kitchen land grab has its downsides, at least according to Kristen Barnett. The former COO of ghost kitchen startup Zuul told me today in a video call that the industry’s rapid expansion has often meant low-quality food, a lack of transparency, and, well, just way too many chicken wing restaurants.

To counter this, Barnett has launched a new company called Hungry House, which she describes as an ‘anti-ghost kitchen ghost kitchen.’

What does that mean?

“We are actively being intentional about some of the more negative sides of the ghost kitchen industry that the public has come to know,” said Barnett. “Hungry House really was created as a reaction to that, seeing a way to flip those maybe less than ideal characteristics of the industry on its head and say ‘No, what happens if we infuse transparency, we tell customers it’s Hungry House making the food, we have a physical storefront that people can actually order at and see the kitchen and see the team?'”

To do all that, Barnett’s plan is to be transparent about where the food is made and who is making it and to have tight control over the quality. That means growth will be purposeful in the beginning as the company builds its business one kitchen – and chef – at a time.

“I wanted to create Hungry House as the partner of choice for what I believe to be the next generation of culinary leaders who have different career paths than in the past.” According to Barnett, that next-generation leader might be a food truck operator or someone who has proven themselves a culinary innovator on social media but may not want to run a full restaurant.

One such creator is Woldy Reyes.

“Woldy is this incredible Filipino chef who has really well attended pop ups throughout Brooklyn,” said Barnett. “He’s known for his signature menu items, yet he’s been running a catering business, not necessarily operating restaurants, and he’s been able to do all of that. So it made a lot of sense for him as someone who has really well developed recipes, but didn’t necessarily know exactly what it would take to run a restaurant and figuring all of that out wasn’t necessarily in his career plan.”

Barnett’s approach to creating high-touch kitchens and working closely with emerging voices with strong culinary visions is a marked contrast to the high-profile celebrity virtual restaurant concepts being spun out these days.

“These celebrities are definitely capitalizing on great content,” said Barnett. “But is it necessarily going to be executed in a way that creates true long term value in a food brand? I don’t think so. I don’t think many of these are going to be around.”

Barnett’s plan is slowly expand Hungry House over the next year into Manhattan and see where it goes from there. She said the company would be raising a seed round to grow the team, build out their tech stack and expand into new cities.

At the top of her list? LA, New York and Miami.

“With those cities locked down, really anything as possible when it comes to using our model to launch high quality brands that come from either chefs, celebrities, CPG brands,” said Barnett. “That’s the type of world I want to create – where there is true innovation, there are new things being launched, and new stories being told.”

You can watch my full interview with Barnett below:

The Spoon Talks with Hungry House Founder Kristen Barnett

August 30, 2021

NASCAR Fans Can Now Get Daytona Firecracker Dogs Delivered To Their Home

Want to have your own Talladega night at home with some food straight from the track?

Good news: You can now scarf down a Tallamento Dogwich or Daytona Speedway Firecracker Dog while watching Kyle Larson race around the track on your TV by ordering from the new NASCAR virtual restaurant through the DoorDash, a new custom-built app, or through the website.

Called NASCAR Refuel, the new race-car restaurant is brought to you by the same folks who created the MrBeastBurger virtual restaurant concept, Virtual Dining Concepts.

“As a NASCAR fan myself, I know the crowds on race day are there for the excitement of the sport, and of course for the food,” said Robert Earl, the company’s founder, and longtime restaurant entrepreneur, in a release sent to the Spoon. “Our menu highlights specialties from NASCAR racetracks, so race fans can enjoy the NASCAR food experience year-round at home.”

The technology behind the app and the website were provided by Lunchbox, a startup that creates digital commerce platforms for restaurants.

It’s not all that surprising a sports brand like NASCAR would launch its own virtual restaurant concept. Sports businesses make billions of dollars each year from merchandising, so why not start selling your food as well? In all reality, it probably won’t be long before we can have our favorite baseball park or hockey rink food made by a local host kitchen and delivered to our home.

The question is whether these virtual food extensions of sports brands will be successful. There’s certainly potential; If you’re a diehard NASCAR fan or love baseball or football, getting a ballpark burger could be a great way to spend a game or race day.

Where things could fall down is in execution in the local markets where it’s available. NASCAR Refuel will work in a similar way to MrBeast, where VDC kitchen partners can learn the menu and start offering the food in their market.

The reviews for MrBeast Burger have been ok but not great. Perhaps not surprising since the virtual burger restaurant expanded very fast (300 locations within the first month), which means many different kitchen partners across the country.

And that’s the thing: each virtual restaurant will only be as good as the local kitchen making them. This means NASCAR is trusting their brand with a local host kitchen, as would be the NFL or NBA.

But who knows? If NASCAR’s virtual restaurant efforts go well, the temptation to get fans to pay for overpriced food outside of the sports venue may be too tempting to pass up.

June 9, 2021

Virtual Restaurant Company Curb Raises €20M

Stockholm, Sweden-based ghost kitchen startup Curb announced this week it has raised a €20 million (~$24.4 million USD) round led by Point72 Ventures (h/t tech.eu). EQT, an existing investor, also participated in the round. Curb has now raised €23.2 million to date.

Curb is only a little over one year old, having been founded in May 2020 by ex-Delivery Hero employees Carl Tengberg and Felipe Gutierrez. The company raised an initial €3.2 million in December of last year, which went towards helping the company expand its delivery-only restaurant brands’ presence.

Curb operates what’s essentially a virtual food court, with many of the items meant to evoke street food. It’s collection of delivery-only restaurants include a Mexican-American concept, a burger restaurant, salads and bowls, and chicken wings, among other offerings. All concepts, menus, food preparation, design, and other branding elements are created in-house. Curb also operates its own tech stack. While specific details are not widely available publicly, the company has said it prioritizes data tracking and analysis to improve operations across its supply change as well as monitor customer demands and alter menu items accordingly. 

The company’s operation currently serves customers in Stockholm and Copenhagen, Denmark. Customers of Curb can order via a number of third-party delivery services that differ based on availability in a given location. Orders are prepped and fulfilled in ghost kitchen locations.

Taster, headquartered in London, U.K., is probably Curb’s nearest competitor in terms of what it offers. Like Curb, Taster has its own portfolio of virtual restaurants. Order prep and fulfillment is done in house, and items are available via third-party delivery platforms. The company raised $37 million at the beginning of May. In the U.S., a company called C3 offers a similar model to both Curb and Taster, with restaurant tech company Lunchbox powering the back-end technical capabilities of its virtual food hall.

Curb, meanwhile, says it will use its new funds to further develop its tech stack and grow its overall operations. 

December 16, 2020

Crave Raises $7.3M to Expand Its Virtual Restaurant/Ghost Kitchen Concept

Crave Hospitality Group, which runs the Crave Collective ghost kitchen/virtual restaurant facility in Boise, Idaho, announced today it has raised $7.3 million in seed funding. The round was led by VC firm StageDotO with participation from Capital Eleven and undisclosed individual investors.

Crave said in a press release sent to The Spoon that it plans to use the funding to “build pre-opening teams” for its next four Crave Collective locations, which will open in 2021. 

The company is a relatively new player to the ghost kitchen and virtual restaurant space, having opened its Boise, Idaho facility in November of this year. That facility houses 16 restaurant concepts, many of them focused on recreating upscale dining for the virtual restaurant era in which we now find ourselves.

Like other operations in this space, Crave and its restaurant teams process orders digitally, prepare them in designated kitchen spaces for each restaurant, and put them in the hands of delivery drivers to go out to customers. Unlike other operations, Crave employs its own W-2 staff to do the driving, calls those people “mobile servers,” and treats them more like restaurant servers than gig workers. The company also built its own proprietary tech stack to manage the orders, and as we saw when Crave gave us a virtual tour of its Boise facility last week, the location also includes a pickup area for customers that don’t want to pay the extra cost of having food delivered. 

All those factors make Crave stand out among competitors in the increasingly saturated ghost kitchen and virtual restaurant markets. Clearly investors think so too, hence this seed funding round.

Crave has an additional 10 more facilities planned for 2022. Among the cities the company will expand to are Salt Lake City and Provo, Utah, Mesa and Chandler, Arizona, the Dallas-Fort Worth area, and Denver, Colorado. Crave said in today’s press release that “nearly all” of its current restaurant partners will grow along with the company as it opens more locations.

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.

November 10, 2017

UberEATS Creates “Virtual Restaurants” to Fill Culinary Voids

We’ve talked before about virtual reality coming to restaurants and possibly training robots to be chefs, but now there’s word that UberEATS is creating entire “virtual restaurants” that exist only inside their app, but serve very real food.

We came across this story via TechCrunch today, but Restaurant Hospitality wrote about it last month.

Here’s the concept in a nutshell. UberEATS sees what foods people in specific neighborhoods are searching for. If that food isn’t served in an area, Uber will approach an existing restaurant and see if they want to serve the missing cuisine. If that establishment agrees, Uber builds a virtual restaurant in its app that people can order from.

The example from Restaurant Hospitality is a Chicago pizza place that created a whole other chicken restaurant that exists only on UberEATS. It uses the same fryers it already had in the pizzeria kitchen, and now does $1,000 worth of chicken sales each week.

It’s easy to see how this could drastically change how a restaurant does business. With a virtual restaurant, they can easily test menu items or whole new cuisine concepts without having to build or invest in a real world presence.

That’s not to say that every virtual restaurant concept will work. An example Uber gave to TechCrunch is the ability for a restaurant to add a Mexican virtual offering. It seems a bit dismissive to think that just any restaurant could shift to Mexican food. It’s easy to see the reach of some greedy restaurants exceeding their grasp. Though, with UberEATS’ new five star rating system, the market will hopefully weed out poseurs quickly.

UberEATS is currently in 130 cities and works with 65,000 restaurants around the world. But now will it spawn 65 milllion virtual ones?

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