Ghost kitchen

Server carrying two plates with one hand

February 27, 2023by David Klemt David Klemt No Comments

Alternatives to ServSafe

Just.Safe.Food. and More Alternatives to ServSafe

by David Klemt

ServSafe, the National Restaurant Association‘s food safety training program, isn’t the only food handler training game in town.

Certainly, the program is the most well known in our industry. However, it’s fair to say that ServSafe is closer to infamous than just ubiquitous due to a New York Times article from January.

While it’s the most recognizable of the food safety programs, it’s not the only one. Although, ServSafe’s omnipresence likely gives many the impression that it’s ServSafe or nothing.

There are, however, alternatives to ServSafe. In fact, one challenger was announced a day after the explosive New York Times article that thrust ServSafe into a spotlight the NRA probably isn’t enjoying. (After all, one result of that article was a letter from six US senators demanding answers from the NRA about ServSafe by March 3.)

At any rate, the newest alternative to ServSafe comes from One Fair Wage. The program is Just.Safe.Food. and costs just $10. (As a reminder, ServSafe costs $15.)

For that $10, Just.Safe.Food. gives an individual three attempts to pass their exam and unlimited access to training materials. Additionally, One Fair Wage (OFW) says profits they raise from the program will go toward advocating for restaurant workers.

OFW, as many in the industry know, is owned and operated by restaurant workers. Two cornerstones of the organization’s mission are increasing the minimum wage, and ending the tip credit. OFW is also attempting to convince lawmakers to stop accepting donations from the NRA.

Basically, OFW and the NRA are—and it appears always have been—at odds with with one another.

Other ServSafe Alternatives

Before I list a few other alternatives, let me be clear: KRG Hospitality isn’t advocating for any food safety training program in particular. Operators and their team members will need to decide which program is best for them.

Whether that decision is based on employer requirements, state or local requirements, cost, ideology, or another reason makes no difference to us.

However, I will say that the more competent and comprehensive options there are, the better. Nobody should have a monopoly on food safety.

The key factor to consider is whether the particular state or county regulations are met by the program. If anyone is uncertain, they should reach out to their local health department before proceeding with any program. It’s likely the department only accepts food safety programs that are ANSI-certified.

That said, some alternatives to ServSafe are:

Operators and food-handler restaurant workers can also search for local programs that are accepted by their state/county.

Food Handler Requirements

Food safety isn’t, it turns out, universal throughout the US. Workers can be subject to state or county requirements. In some states, food handler certification is voluntary.

And then there are food safety manager regulations to consider, and those can also be state- or county-specific.

I can’t reiterate enough how important it is to know your state/county/local food handler requirements. As with many regulations, there are nuances and hospitality professionals need to know them.

Below, how different *states regulate food handler training.

State Requirements

Alabama
Alaska
California
Florida
Georgia
Hawaii
Illinois
North Carolina
Ohio
Oregon
South Carolina
Texas
Utah
Washington

County Requirements

Alabama
Arizona
Kansas
Kentucky
Missouri
Montana
Nebraska
Nevada
New Jersey
New Mexico
New York
North Dakota
Oklahoma
Virginia
West Virginia

Voluntary

Arkansas
Colorado
Connecticut
Delaware
Idaho
Indiana
Iowa
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
New Hampshire
North Carolina
Pennsylvania
Rhode Island
South Dakota
Tennessee
Wyoming

*This information is believed accurate at the time of publication. No warranty of accuracy is given.

Image: Pixabay on Pexels

September 21, 2022by David Klemt David Klemt No Comments

Will Virtual Kitchens Persist?

Will Virtual Kitchens Persist or Go Brick-and-Mortar?

by David Klemt

Virtual kitchens and virtual brands are back in the headlines after a record-setting grand opening in Rutherford, New Jersey.

Well, I should clarify: A restaurant may now hold a specific record.

The restaurant in question is the first brick-and-mortar MrBeast Burger location. And the record it may hold claim to is most burgers sold in a single day by a single restaurant.

View this post on Instagram

A post shared by MrBeast Burger (@mrbeastburger)

Now, if you don’t spend much time on YouTube, you may not know MrBeast. So, here’s a quick rundown: He’s Jimmy Donaldson, a YouTube personality known for “expensive stunts.” In fact, he may be the pioneer of that type of content.

Right about now you may be wondering what this all has to do with virtual kitchens and brands. It’s quite simple, really. MrBeast was among the highest-profile virtual brands to launch during the pandemic.

Incredibly, MrBeast Burger boasts more than 1,700 virtual kitchen locations. And now, one brick-and-mortar MrBeast restaurant.

Leveraging Demand and Popularity

So, you’re an influential YouTube content creator with tens of millions of subscribers. Obviously, your channel is monetized. What else can you do to leverage your popularity?

Well, if there’s a pandemic crippling the globe and people are stuck at home, maybe you notice the demand for takeout and delivery. And perhaps you learn about something known as a “virtual kitchen.”

If you’re a foodie or maybe just a savvy businessperson, maybe you’d jump into the virtual space. It is, it goes without saying, much less expensive than opening your own restaurant. And if you perform well, that’s an excellent way to collect data and guest feedback.

Also, an efficient way to hone your brand without a lease, buildout or the overhead of a physical restaurant. In a way, a virtual brand is akin to a pop-up restaurant, only you can test hundreds of markets simultaneously.

Okay, so now let’s say you reach a rare milestone in the creator space: 100 million subscribers. MrBeast did just that in July of this year. Do you think you’d want to leverage the support of millions of fans willing to support you and your brand?

The first physical MrBeast Burger opened last week at the American Dream mall in New Jersey. Reports claim that over 10,000 people waited in line for the grand opening.

Oh, and that’s when the location may have claimed the aforementioned record: 5,500 burgers sold in one day. After just one day of operation, MrBeast wondered if the brand should franchise:

should we… franchise? @mrbeast

— MrBeast Burger (@MrBeastBurger) September 15, 2022

Virtual to Physical

This (potential) record-setting event brings virtual kitchens and brands back into the spotlight.

Of course, most virtual brands don’t have the same origin story as MrBeast. One hundred million supporters? That’s rarified air.

At any rate, virtual kitchens do offer potential physical restaurant operators a less expensive method of testing their concepts. Couple data collection and feedback with an accurate feasibility study and taking the next step may make sense. And it may make a tidy profit.

It’s possible we’ll see MrBeast franchise off the success of two years of operating virtually and opening a physical location. And it’s possible we’ll see other virtual brands expand beyond the virtual kitchen.

However, it’s important that virtual brand owners keep a few things in mind. One, online success doesn’t always translate to brick-and-mortar success. Two, the restaurant space doesn’t care about your subscriber count—the KPIs are entirely different here. Three, potential operators need to perform the proper studies—or retain an agency with experience performing them—rather than rushing into the restaurant space.

It’s highly likely we’ll see more virtual brands enter the physical restaurant world. How many will do so successfully remains to be seen.

Image: Eiliv-Sonas Aceron on Unsplash

Wendy's fast food restaurant exterior and sign

August 18, 2021by David Klemt David Klemt No Comments

Wendy’s Looks to Ghosts for Growth

Wendy’s Looks to Ghosts for Growth

by David Klemt

Wendy’s is the latest foodservice company to announce plans to open ghost kitchens in Canada, the US and the UK.

The fast-food giant’s scheme is large-scale and part of an expansive growth strategy.

Per the company, Wendy’s plans to open 700 ghost kitchens.

Embracing the Trend

Here’s a question for you: Do you hear and read the word “pivot” or the phrase “ghost kitchen” more often these days?

Ghost kitchens seem to be the pivot of choice for restaurant groups and enterprising tech companies looking to leverage the next big thing. (There, a sentence with both “pivot” and “ghost kitchen” in it,)

The trend also appears more often than not to be the domain of Big Business.

Former Uber executive Travis Kalanick is the founder of CloudKitchens. DoorDash is also entering the ghost kitchen space, running a trial in California to see if pursuing the idea is viable.

Now, enter Wendy’s, not exactly a mom-and-pop shop in the restaurant space.

Ghost vs. Virtual Kitchen

We don’t revel in the semantics game, necessarily. But we know people are going to refer to Wendy’s ghost locations as “virtual” kitchens as well.

However, ghost kitchens and virtual kitchens have unique definitions and characteristics.

Wendy’s isn’t creating a new brand with new items they’re preparing in their existing brick-and-mortar locations. Nor do they plan to do so with their new locations under constructions currently.

Were that the case, their strategy would be a virtual kitchen plan.

Instead, the 700 locations will be separate facilities without storefronts. Also, the units will focus solely on delivery, leveraging on-demand consumer behavior.

So, the lack of storefront is arguably the greatest defining characteristic of a ghost kitchen.

Conversely, a virtual kitchen operates in a location with a storefront. However, the brand on offer exists online and not in the brick-and-mortar world of an established brand. In essence, an existing brand is offering a brand that they don’t want to dilute what they’ve already built.

That’s a Lot of Ghosts

Per reporting, Wendy’s is joining forces with Reef Technology to open and operate their ghost kitchens.

At least 50 such locations are in the works to open this year. The other several hundred locations will open between 2022 and 2025.

That means we should see more than 150 Wendy’s ghost kitchens going live per year across Canada, the US and the UK.

Partnering with Reef Technology is an interesting and telling maneuver. Reef, per their website, focuses on “urbanization” and reshaping “our urban infrastructure.”

And as CEO Todd Penelow stated last week, Wendy’s doesn’t isn’t strong in urban areas. The vision for Wendy’s new strategy is to penetrate urban markets, adding new stores and new franchisees as the brand moves forward.

Should things go according to plan, Wendy’s expects to expand from 6,500 units worldwide to somewhere between 8,500 and 9,000 in 2025.

Image: Michael Form from Pixabay

Pepper hotel concierge robot by SoftBank Robotics

July 2, 2021by David Klemt David Klemt No Comments

Restaurant Tech Map Illustrates Innovation

Restaurant Tech Map Illustrates Innovation

by David Klemt

The hospitality industry’s embracing of new technologies is experiencing rapid and welcome acceleration in less than two years.

In comparison to the restaurant technology map by TechTable and Better Food Ventures from 2019, there are two entirely new categories: Shared / Ghost Kitchens, and Food Safety / Quality.

More than a dozen platforms on the 2021 map from TechTable and Culterra Capital (sponsored by Back-of-House) now fall into those two categories.

Changing Landscape

It’s a sign of current industry trends and what will matter to guests moving forward that ghost kitchens and food safety are emerging as separate tech segments.

Obviously, the pandemic didn’t create the ghost kitchen category. However, it did fuel a meteoric rise in delivery and takeout. In turn, ghost kitchens are more prevalent than ever.

After all, a former Uber executive Travis Kalanick owns CloudKitchens and Applebee’s is testing a ghost kitchen pilot program.

What was once the domain of murky, unpermitted virtual brands is now its own successful business model.

However, today’s guest isn’t concerned solely with convenience. In general, guests now take their health and safety more seriously since the pandemic

Tech platforms that can ensure the food guests are consuming is safe will ease some concerns.

Increase in Platforms

Again, in comparison to just two years ago, the acceleration in new tech for the industry is astounding. It’s also long overdue.

As a whole, the hospitality industry has been surprisingly slow to take on new tech. Although, it’s fair to say that there wasn’t much new to adopt until somewhat recently.

Now that there’s more to try out, operators seem keen to embrace tech that can help them streamline operations; improve inventory monitoring and ordering; hire employees and manage teams; engage with and market to customers intelligently; and much more.

Even better, the above map doesn’t include all of the available platforms. That’s excellent news as it means operators have an increasing number of choices to help improve their business in every category of operation.

For example, Barventory isn’t listed within the Purchasing / Inventory / Ordering segment. The platform makes taking inventory, gaining a real-time inventory snapshot, and efficient ordering a breeze. Barventory also features the world’s first live keg scale.

It’s challenging to find positives from the past 14 to 15 months. However, one good thing may be the leaps in technology our industry is experiencing.

If they continue, these innovations may make it easier for operators and their employees to recover.

A concept’s tech stack is crucial to operations and will only grow more important moving forward. Whether opting for a full KRG Hospitality package or the Mindset program, we can help operators make informed tech selections.

Map by TechTable and Culterra Capital, sponsored by Back-of-House

Featured image: Pepper by SoftBank Robotics (photo by Alex Knight on Unsplash)

March 29, 2021by David Klemt David Klemt No Comments

Restaurant or Bar Dream? Make Your Move

Restaurant or Bar Dream? Make Your Move

by David Klemt

If your dream is to open a restaurant, bar or nightclub, you’re not doing yourself any favors by waiting to make it a reality.

The same goes for starting up any other type of hospitality business.

We’re in uncharted territory and things seem unstable. But waiting to move forward with your concept is setting you back.

Industry Challenges

We can all agree that the destruction wrought upon the hospitality industry in 2020 continues to be felt today.

Tens of thousands of business closures. Millions of jobs and hundreds of billions of dollars in revenue lost.

Some experts say the veteran operators and workers won’t be back. The financial damage and psychological trauma will drive them out of the industry. Others disagree, myself included, saying those operators won’t stay down for long. This industry works its way into people’s blood.

The pandemic is responsible for the permanent or long-term closure of nearly 20 percent of restaurants in America. Most of the restaurants lost were well-established operations. The industry is down 2.5 million jobs that it will take years to recover.

Since March of last year, Canada has seen the closure of 10,000 restaurants. The country is facing the loss of 800,000 industry jobs.

Waiting to open a restaurant or bar, therefore, seems to make sense. Only no, it doesn’t.

Don’t Wait

Time is rarely on anyone’s side. And I’m not the first to say that perfection is an illusion. Our industry would be a fraction of what it is if people chose to wait for the “perfect time” to open.

That doesn’t mean it’s great to throw caution—and hundreds of thousands of dollars—to the wind.

Rather, those with a vision for a business in this industry owe it to themselves to move forward.

Let me put it this way: If you have an idea but you’re waiting for “the right time,” you’re already behind.

Forward Progress

The key is being strategic, making calculated decisions.

There are operators who successfully opened new concepts in the midst of the pandemic. We’re going to see new entrants in this industry this year as well. Will you be among them?

Maybe you’re not ready to break ground or sign a lease. Perhaps you’re not ready to send in a crew to renovate a space.

However, there are crucial moves you can make so that when you’re ready ready, you can move quickly. Think agility.

Will you be applying for a grant to fund part of your business? Complete the paperwork and submit it now.

Do you need a consultant? Do your research now and schedule those conversations.

You need demographic, feasibility and other studies done. Will you do them? Will you retain the services of an industry researcher?

If you’re not yet ready, take meaningful steps today because your future competitors are making their moves. It takes longer than you think for each crucial step to be completed, and there are dozens.

Your concept won’t become a reality if it only lives in your head. Don’t watch your opportunity to thrive in this industry pass you by.

Image: Kei Scampa from Pexels

Make My Ghost Kitchen container exterior

March 26, 2021by David Klemt David Klemt No Comments

Container Kitchens: The New Footprint

Container Kitchens: The New Footprint

by David Klemt

Would it be a surprise to anyone after the past twelve months that shipping containers may be the new commercial kitchens?

According to two 2021 Restaurants Canada Show panelists, custom containers are the future.

A partnership between a builder and designer is providing restaurateurs with an intriguing solution.

Meet the Problem Solvers

Jonathan Auger is the president of Juiceworks Exhibits. The company operates out of Mississauga, Ontario, Canada.

Juiceworks designs, engineers, and fabricates memorable exhibits and installations. Click here to view projects for clients such as Genesis, Infiniti and Volvo.

Nicholas Goddard is the founder of Portage Design Group, located in Toronto.

Portage specializes in interior design and offers a full suite of services, including research, sophisticated design, and construction management. The company’s restaurant design work can be seen here.

Together with a small but skilled team, Auger and Goddard have formed Make My Ghost Kitchen.

Custom Container Flexibility

In some cases, a smaller restaurant footprint is attractive to operators. This is due in part to guest behavior we’ve seen since 2020. That is, guests haven’t been able to or felt comfortable with dining indoors at restaurants.

Then, of course, there’s the cost factor. A smaller footprint, generally speaking, equals lower initial investment and rent. An operator with a new concept can use a container before investing in a brick-and-mortar location.

Other benefits relate to market testing; expansion; virtual and ghost kitchen operations; and delivery and pickup.

Operators looking to expand or add retail, along with QSRs, are showing interest in Make My Ghost Kitchen’s containers. One explanation for the interest is simple: containers are highly mobile.

An operator sends their kitted out container to a potential market. They open up shop and test the viability of their concept. If the reaction is less than desirable, they move the container to another market.

For example, one client set up a container complete with a delivery window. In just six hours they sold 3,600 burgers.

Custom Container Costs

Make My Ghost Kitchen’s custom containers come with the necessary equipment. They also feature a delivery window and fabricated with a small pickup vestibule.

Obviously, prices go up with the quality of equipment. Other customizations, it stands to reason, can also push container costs up.

On average, however, Auger says an eight-foot by 20-foot container can be had for as low as $20 per square foot. Prices can climb north of $50 to $75 per square foot, however.

Whether functioning as a ghost kitchen or marketing showpiece, operators can choose from ventilation solutions. The containers can vent to interior (which heats them up quickly) or exterior. Another cost to consider is water. If a municipality doesn’t grant access to their water it will need to be trucked in.

Finally, a custom-kitted kitchen can be an asset. If an operator decides it’s time to move on, they have the potential to sell their container.

Image: Make My Ghost Kitchen

March 19, 2021by krghospitality krghospitality No Comments

Kitchen Showdown: Virtual vs. Ghost

Kitchen Showdown: Virtual vs. Ghost

by David Klemt

The lines between virtual and ghost kitchens are growing increasingly blurry as they rise in popularity.

The terms aren’t interchangeable—they’re separate concepts.

Let’s snap the two into focus so operators can decide for themselves which, if either, is for them.

Virtual Kitchen

A virtual kitchen or virtual restaurant supports a brick-and-mortar concept. This includes food trucks.

Standard process is as follows:

A concept in a certain category seeks to expand their menu options without diluting or otherwise damaging their brand.
They create new menu items and sometimes a new brand.
Their existing kitchen or kitchens create these new items, which are online- and delivery-only.

A virtual kitchen has a brick-and-mortar location in a technical sense, but the brand’s existence is essentially digital as far as consumers know.

These facilities are delivery-only and commonly produce virtual brands’ items, which is a possible source of the confusion surrounding ghost and virtual kitchens. A truly virtual brand is only available online, either via its own ordering site or a delivery app—it has no brick-and-mortar location of its own.

We’ve known since the Chicken Wars first started that chicken sells, apparently in all forms. Several virtual brands, largely focused on wings and sandwiches, are succeeding with the help of ghost kitchens.

However, ghost kitchens also rent themselves out to or otherwise enter into contracts with third-party concepts with brick-and-mortar locations of their own to produce their delivery menu items.

The explosive rise of delivery is driving investment in ghost kitchens (former Uber executive Travis Kalanick’s CloudKitchens is an excellent example). It’s also the reason that so many industry experts and speculators declare ghosts “the future of restaurants.”

Not the Same

This quick rundown should clarify the differences between virtual kitchens and ghosts. Their missions may be similar but their operations are not.

Image: Charles Deluvio on Unsplash