{"id":86943,"date":"2020-10-11T22:49:00","date_gmt":"2020-10-11T19:49:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/kroger-to-launch-two-ghost-kitchens-as-food-chains-get-creative-during-coronavirus\/"},"modified":"2020-10-11T22:49:00","modified_gmt":"2020-10-11T19:49:00","slug":"kroger-to-launch-two-ghost-kitchens-as-food-chains-get-creative-during-coronavirus","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/kroger-to-launch-two-ghost-kitchens-as-food-chains-get-creative-during-coronavirus\/","title":{"rendered":"#\n  Kroger to launch two ghost kitchens as food chains get creative during coronavirus"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2fc1b4a3aa0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2fc1b4a3aa0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/kroger-to-launch-two-ghost-kitchens-as-food-chains-get-creative-during-coronavirus\/#Krogers_expanded_partnership_with_ClusterTruck_comes_after_digital_sales_more_than_doubled_in_the_second_quarter\" >Kroger\u2019s expanded partnership with ClusterTruck comes after digital sales more than doubled in the second quarter<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/kroger-to-launch-two-ghost-kitchens-as-food-chains-get-creative-during-coronavirus\/#Kroger_is_jumping_on_the_ghost_kitchen_trend_that_has_accelerated_during_COVID-19\" >Kroger is jumping on the ghost kitchen trend that has accelerated during COVID-19<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/kroger-to-launch-two-ghost-kitchens-as-food-chains-get-creative-during-coronavirus\/#Tonya_Garcia\" >Tonya Garcia<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\n  Kroger to launch two ghost kitchens as food chains get creative during coronavirus<br \/>\n<\/strong>&#8221;<\/p>\n<h2 class=\"article__subhead\" itemprop=\"alternativeHeadline\"><span class=\"ez-toc-section\" id=\"Krogers_expanded_partnership_with_ClusterTruck_comes_after_digital_sales_more_than_doubled_in_the_second_quarter\"><\/span>\n  Kroger\u2019s expanded partnership with ClusterTruck comes after digital sales more than doubled in the second quarter<br \/>\n<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><\/p>\n<div class=\"column column--full article__content\">\n<div id=\"js-article__body\" class=\"article__body article-wrap at16-col16 barrons-article-wrap\" itemprop=\"articleBody\" data-sbid=\"WP-MKTW-0000028515\">\n<div class=\"barrons-article-ad-wrapper\">\n<div data-track=\"barrons-article-ad-wrap\" class=\"barrons-article-ad sticky_item\">\n<div class=\"barrons-main-article-ad-target sticky_target body_ad\" aria-hidden=\"true\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div data-layout=\"inline\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \" itemscope itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<div style=\"padding-bottom:66.640625%;\" data-mobile-ratio=\"66.640625%\" data-layout-ratio=\"66.640625%\" data-subtype=\"\" class=\"image-container  responsive-media article__inset__image__image\">\n        <img decoding=\"async\" srcset=\"https:\/\/images.mktw.net\/im-242056?width=140&amp;size=1.5005861664712778 140w,\nhttps:\/\/images.mktw.net\/im-242056?width=540&amp;size=1.5005861664712778 540w,\nhttps:\/\/images.mktw.net\/im-242056?width=620&amp;size=1.5005861664712778 620w,\nhttps:\/\/images.mktw.net\/im-242056?width=700&amp;size=1.5005861664712778 700w,\nhttps:\/\/images.mktw.net\/im-242056?width=860&amp;size=1.5005861664712778 860w,\nhttps:\/\/images.mktw.net\/im-242056?width=1260&amp;size=1.5005861664712778 1260w\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" src=\"https:\/\/images.mktw.net\/im-242056?width=620&amp;size=1.5005861664712778\" data-enlarge=\"https:\/\/images.mktw.net\/im-242056?width=1260&amp;size=1.5005861664712778\" alt=\"\" title=\"Kroger is jumping on the ghost kitchen trend that has accelerated during COVID-19\"><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\" itemprop=\"caption\">\n<h4 class=\"wsj-article-caption-content\"><span class=\"ez-toc-section\" id=\"Kroger_is_jumping_on_the_ghost_kitchen_trend_that_has_accelerated_during_COVID-19\"><\/span>Kroger is jumping on the ghost kitchen trend that has accelerated during COVID-19<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<p>      <span class=\"wsj-article-credit article__inset__image__caption__credit\" itemprop=\"creator\"><br \/>\n            Kroger<br \/>\n          <\/span><br \/>\n  <\/figcaption><\/figure>\n<\/div>\n<p>       Kroger Co. said Thursday that it will launch two ghost kitchens at stores in Indianapolis and Columbus, Ohio through a partnership with ClusterTruck, a company that launched its first kitchen in 2016.<\/p>\n<p> A ghost kitchen is a cooking space that prepares food for<br \/>\ndelivery or to go.<\/p>\n<div class=\"paywall\">\n       Ghost kitchens <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.usatoday.com\/story\/tech\/2019\/10\/21\/ghost-kitchen-virtual-restaurant-heres-how-works\/4053659002\/\" class=\"icon none\">have grown<\/a> <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.washingtonpost.com\/business\/2020\/09\/17\/virtual-ghost-kitchen-restaurants\/\" class=\"icon none\">more popular<\/a> during COVID-19 as restaurant dining rooms have shuttered, customers have grown cautious about eating indoors, and online ordering has gained customers. <\/p>\n<p>Kroger<br \/>\n        KR,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/206215053\/composite\" class=\"positive\">+0.46%<\/bg-quote><br \/>\n       is also an investor in ClusterTruck, though the grocery giant did not disclose all of the financial details of the partnership.<\/p>\n<p>Kroger and ClusterTruck piloted kitchens in Dec. 2019.<\/p>\n<p><strong>See: <\/strong> Online grocery sales will skyrocket but margins take a hit, analysts say <\/p>\n<p>Each of the new kitchens will be about 1,000 square feet, and the menu will consist of about 80 meals that Kroger describes as \u201cquality you can get at a sit-down restaurant with the personality of street food.\u201d<\/p>\n<p>Kroger says the expanded partnership comes after the grocer<br \/>\nexperienced a 127% rise in digital sales during the second quarter.<\/p>\n<p>ClusterTruck\u2019s delivery process is aided by <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> to ensure that meals are delivered to the customer within seven minutes of preparation and within 30 minutes of ordering.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>Orders are placed through the ClusterTruck <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a> or on that company\u2019s website and can be delivered to a customer\u2019s home or picked up at a participating Kroger store.<\/p>\n<p>Menus will be branded with the ClusterTruck name, though<br \/>\nKroger will provide some in-store promotion.<\/p>\n<p>\u201cAs part of the Restock Kroger initiative launched in 2018, Kroger has prioritized offering new prepared fresh food options and developing new ways for customers to engage via e-commerce,\u201d a Kroger spokesperson told MarketWatch. <\/p>\n<p><strong>Also:<\/strong>  Shares of avocado producer Mission Produce soar 18% as trading begins <\/p>\n<p>\u201cOur insights tell us that the use of and interest in<br \/>\non-demand ordering continues to grow \u2014 and as customers seek out more<br \/>\nconvenient, seamless meal ordering options, the ClusterTruck partnership allows<br \/>\nKroger to meet this evolving need.\u201d\u00a0<\/p>\n<p>Kroger is launching its latest ghost kitchens at a time when<br \/>\nfood companies, including restaurants, are getting creative with their brands<br \/>\nas well as their space.<\/p>\n<p>In addition to ghost kitchens, restaurant chains are also<br \/>\nlaunching virtual brands, which offer specialized menus that capitalize on the<br \/>\nkitchen space and marketing abilities of existing companies.<\/p>\n<p>Chili\u2019s parent Brinker International Inc.<br \/>\n        EAT,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/203470869\/composite\" class=\"positive\">+1.00%<\/bg-quote><br \/>\n       launched its virtual chicken chain It\u2019s Just Wings during the final weeks of its fiscal 2020 year. By the time Brinker announced its earnings in August, the company said It\u2019s Just Wings had the potential to be a $150 million brand in its first year. <\/p>\n<p>\u201c[W]e had to buy a couple of small refrigerators in a couple<br \/>\nof restaurants, but for the sales volume that it generates, it\u2019s really<br \/>\ncapital-free,\u201d Brinker Chief Executive Wyman Roberts said on the earnings call,<br \/>\naccording to FactSet.<\/p>\n<p>On the flip side, Eugene Lee, chief executive of Olive Garden parent Darden Restaurants Inc.<br \/>\n        DRI,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/200092615\/composite\" class=\"negative\">-1.34%<\/bg-quote><span>,<\/span><br \/>\n       said on his company\u2019s fiscal first-quarter earnings call last month that virtual brands are \u201cnot the right approach\u201d for them.<\/p>\n<p>\u201cWe want to focus on brands that we have got 20-plus year<br \/>\nand hundreds of millions of dollars invested in trying to build and we want to<br \/>\nmake sure that they are executing at a high level,\u201d he said, according to<br \/>\nFactSet.<\/p>\n<p>Monica Challingsworth, head of global relationships at Synergy Restaurant Consultants, agrees that ghost kitchens and virtual brands might not be for every company. She has worked with Darden.<\/p>\n<p>With businesses impacted by the coronavirus pandemic, there must be considerations made for execution, marketing and other factors. A large company with many brands, like Darden, would likely have problems making a virtual brand strategy work.<\/p>\n<p><strong>Don\u2019t miss:<\/strong>  Amazon Prime Day could generate nearly $10 billion in sales, experts forecast <\/p>\n<p>\u201cThey take so much pride in being consistent, testing items, implementing it,\u201d Challingsworth said. \u201cIt would take so long and you don\u2019t know that it will be successful.\u201d<\/p>\n<p>Virtual brands and ghost kitchens were on the rise<br \/>\npre-COVID, but Challingsworth expects that many will go under once the pandemic<br \/>\nis over.<\/p>\n<p>\u201cWe were oversaturated with restaurants,\u201d she said. \u201cEveryone<br \/>\nswitching and jumping to these ghost kitchens and virtual brands, some will<br \/>\nfail.\u201d<\/p>\n<p>On Sept. 16, KeyBanc Capital Markets raised the price target<br \/>\nfor Darden Restaurants to $102 from $87 while maintaining its overweight stock<br \/>\nrating.<\/p>\n<p>\u201cOlive Garden\u2019s sales recovery has lagged that of several<br \/>\nbig casual dining brands with the absence of third-party delivery partnerships<br \/>\nand\/or virtual concepts, limited outdoor seating (no tents in parking lots),<br \/>\nand a more nuanced floor plan that limits capacity under <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> distancing<br \/>\nrestrictions,\u201d wrote analysts led by Eric Gonzalez. <\/p>\n<p>\u201cThat said, we believe these issues are transitory. Wait<br \/>\ntimes remain elevated at peak times despite limited advertising investment, no<br \/>\nnew innovation, and a pause in the promotional schedule. This suggests an<br \/>\nopportunity exists for Olive Garden to drive demand at the appropriate time.\u201d<\/p>\n<p>In a conversation after that note was published, Gonzalez pointed out the differences between Brinker restaurants, which also includes Chili\u2019s and Maggiano\u2019s brands.<\/p>\n<p>\u201cThe real differentiator is capacity,\u201d he said. \u201cThe average<br \/>\nChili\u2019s is more in rural, suburban areas whereas Olive Garden has two locations<br \/>\nin Manhattan. Chili\u2019s traffic is down, comping slightly negative and traffic is<br \/>\n<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a>ly negative, so there\u2019s plenty of capacity without disrupting business.\u201d<\/p>\n<p>Moreover, Olive Garden isn\u2019t set up digitally to easily launch a virtual brand, he said.<\/p>\n<p>Still, the barrier to entry for these ghost kitchens and virtual brands is low, Gonzalez said. <\/p>\n<p><strong>And:<\/strong>  Halloween sales forecast could be frightful to companies trying to create holiday season momentum <\/p>\n<p>COVID-19 has accelerated the move to digital ordering and<br \/>\nghost kitchens, Gonzalez said, in much the same way that the pandemic<br \/>\naccelerated the shift to e-commerce that is happening in retail.<\/p>\n<p>The model isn\u2019t perfect, and there are many diners who miss eating out. But Gonzalez estimates that there were hundreds of thousands of restaurants operating in the U.S. before the pandemic, more than there should have been.<\/p>\n<p>\u201cThere will always be an element of service and people<br \/>\nlooking for a dine-in experience,\u201d he said. \u201cBut I don\u2019t know that we need 600,000<br \/>\nor 700,000 restaurants in this country.\u201d<\/p>\n<p>Kroger sees a demand for its ghost kitchens, and the results<br \/>\nfrom the first two locations will determine whether it will expand further.<\/p>\n<p>\u201cThe new on-premise kitchen, in partnership with<br \/>\nClusterTruck, is an innovation that streamlines ordering, preparation and<br \/>\ndelivery, supporting Kroger as we meet the sustained customer demand for quick,<br \/>\nfresh restaurant-quality meals, especially as we navigate an unprecedented<br \/>\nhealth crisis that has affected every aspect of our lives, including mealtime,\u201d<br \/>\nsaid Dan De La Rosa, Kroger\u2019s group vice president of fresh merchandising, in a<br \/>\nstatement.<\/p>\n<p>Kroger stock has rallied 18.8% for the year to date while the S&amp;P 500 index<br \/>\n        SPX,<br \/>\n        <bg-quote field=\"percentchange\" format=\"0,000.00%\" channel=\"\/zigman2\/quotes\/210599714\/realtime\" class=\"positive\">+0.87%<\/bg-quote><br \/>\n       is up 7.6% for the period.<\/p><\/div>\n<\/div><\/div>\n<p><\/p>\n<div class=\"byline article__byline\">\n<p>      <span>By<\/span><\/p>\n<div class=\"author  hasMenu\" data-scrim='{\"type\":\"author\",\"header\":\"Tonya Garcia\",\"subhead\":\"The Wall Street Journal\",\"list\":[]}' itemscope itemprop=\"author\" itemtype=\"http:\/\/schema.org\/Person\">\n<h4 itemprop=\"name\"><span class=\"ez-toc-section\" id=\"Tonya_Garcia\"><\/span>Tonya Garcia<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/p><\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7B21004575-02D4-D4B5-4572-D6F63E9C1BDC%7D&#038;siteid=rss&#038;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Kroger to launch two ghost kitchens as food chains get creative during coronavirus &#8221; Kroger\u2019s expanded partnership with ClusterTruck comes after digital sales more than doubled in the second quarter Kroger is jumping on the ghost kitchen trend that has accelerated during COVID-19 Kroger Kroger Co. said Thursday that it will launch two ghost&#8230;<\/p>\n","protected":false},"author":1,"featured_media":86944,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-86943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/86943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=86943"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/86943\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/86944"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=86943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=86943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=86943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}