The company is not only providing space for restaurants, but it is also taking on most of the work of running them. Early entrants like Sprig, Bento and SpoonRocket also bit the dust.īut as delivery and the technology supporting it has improved, some of the strategies in place overseas are starting to emerge in the U.S.ĭoorDash, the country’s largest third-party delivery provider, in July opened its second ghost kitchen, inside a former California Pizza Kitchen in San Jose, Calif. David Chang-backed Maple shut down in 2017, citing logistical challenges and inefficiencies Chang’s own concept, Ando, suffered the same fate in 2018-and was absorbed by none other that Uber Eats. In the U.S., several companies have tried and failed to run fully integrated, delivery-only restaurants.
Vertically integrated ghost kitchens, such as Singapore’s Grain, are also more common. are investing heavily in ghost kitchens-the latter has offered them since 2017. There, large delivery companies like Zomato in India and Deliveroo in the U.K. The more developed international ghost kitchen market offers some evidence to support that.
One of those versions, she believes, is something resembling ClusterTruck. “I would expect that something similar would happen in ghost kitchens, where it would settle in on one or maybe two versions.” “If you look at drive-thrus as a model, by and large, they settled on one version,” said Meredith Sandland, former COO of Kitchen United and co-author of “Delivering the Digital Restaurant,” a book about how technology is changing restaurants. ghost kitchen industry is still less than a decade old, and far from its final form. But virtually all of them rely on a patchwork of in-house pieces and outside partners to make the whole thing work. Many offer additional services, such as online ordering, marketing and even operations support. For most, the main selling point is real estate for restaurants that want to grow without investing in brick-and-mortar. The term “ghost kitchen” encompasses a broad and ever-growing variety of operations. “More companies look to find ways that they can increase the level of control and quality and efficiency that they have.” -Mason Harrison, Reef
“The only way to make this possible is to own the whole process and go fully vertically integrated.” “There’s no way this can work long-term,” said Hownestein, describing Baggott’s realization. Vertical integration has been in the company’s DNA from the beginning, when founder and CEO Chris Baggott began questioning restaurants’ reliance on third-party delivery companies. “And those are deliveries, and not just individual orders.” “We’ll do 1,000 deliveries a day,” he said. COO Brian Howenstein said ClusterTruck is the busiest restaurant in the city, posting numbers that rival the average QSR. ClusterTruck controls every step of the process, which makes it easier to achieve its goal of delivering food in no more than six minutes.Īnd the strategy seems to be working. That means everything from the technology to the menu, cooking and delivery is developed and executed in-house.
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