The growing trend towards ghost kitchens and dark stores

The link : www.alpha-sense.com/insights/dark-stores

The Growing Trend Towards Ghost Kitchens and Dark Stores Accelerates

 

As COVID-19 continues to spread across the U.S. and unemployment rises, federal economic recovery payments have been distributed throughout the country. On Friday, the Bureau of Economic Analysis reported on the impact of the stimulus, stating a 10.5% increase in personal income in the month of April. However, this increase in income did not offset an acute drop in spending, which plummeted by 13.6% during the month of April. Amidst the hardest hit businesses, restaurants and retailers have been forced to innovate during quarantine, with many shifting their focus to ghost kitchens and dark stores. 

 

Takeaways:

• Amazon entered the food delivery market in India as startup darling, Swiggy, announced dark kitchen closures and lay-offs
• Amrest sees the pandemic as a catalyst towards online food delivery and virtual brands
• sbe, Muscle Maker Grill and FAT Brands announced investments in cloud kitchens 
• Global grocery retailers have transitioned spaces into dark stores, with many planning to increase their investment, citing a shift in consumer behavior towards online 

Google - TechCrunch - 5/28

Another change aims to address the broader way the pandemic is impacting in-person businesses. Instead of shutting down entirely, many have chosen to pivot and go virtual. Restaurants have turned themselves into virtual kitchens, for example. Yoga studios have begun streaming classes online.

In the next few weeks, merchants who are verified through Google My Business will be able to alert their customers that they’re operating in a new capacity by adding to their profiles attributes like “online classes,” “online appointments” and “online estimates.” These will display in both Search and Maps, Google says.

 

Q1 2020 Welbilt Inc Earnings Call - 5/22

One of the outcomes of this crisis is likely to be an increased focus on ghost kitchens. Today, as a result of the pandemic, nearly every restaurant has been transformed into a ghost kitchen. The number of ghost kitchens in the U.S. is expected to increase between 5 to 10x by 2024 compared to today and Welbilt is seen as a leader in modular design, menu management, integration with apps, speed cooking and mobility.

As the industry resets, more companies may decide to eliminate the dining room altogether to capitalize on longer-term off-premise trends. Also important to the operators of these ghost kitchens is having both hot and cold equipment that have common connectivity. We are actively increasing our focus on this important and growing market segment opportunity to establish Welbilt as the preferred supplier to ghost kitchens.

 

Amazon - TechCrunch - 5/21

“Customers have been telling us for some time that they would like to order prepared meals on Amazon in addition to shopping for all other essentials. This is particularly relevant in present times as they stay home safe,” an Amazon spokesperson told TechCrunch.

“We also recognize that local businesses need all the help they can get. We are launching Amazon Food in select Bangalore pin codes allowing customers to order from handpicked local restaurants and cloud kitchens that pass our high hygiene certification bar. We are adhering to the highest standards of safety to ensure our customers remain safe while having a delightful experience,” the spokesperson added.

 

Swiggy - HT Media - 5/18

The company said it has already shut several of its cloud kitchens - facilities that only cater to takeaway orders - temporarily or permanently.

"The biggest impact here is on the Cloud kitchens business, with many unknowns about volumes through the year. Since the onset of COVID-19, we have already begun the process of shutting down our kitchen facilities temporarily or permanently, depending on their outlook and profitability profile," Majety told the employees.

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catalyst : 촉매재

offset : 상쇄하다 

lay off : 그만두다 

lay offs : 해고

merchant : 상인 (특히 대량으로 판매하는 상인)

onset : (특히 불쾌한 일의) 시작