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What happens when Grocery, Ghost Kitchens, and Delivery collide?!! πŸͺ😸πŸ₯‘πŸš—

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What happens when Grocery, Ghost Kitchens, and Delivery collide?!! πŸͺ😸πŸ₯‘πŸš—

Part One is all about What We Know in our two-part trend report.

$5.vc
Sep 9, 2021
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What happens when Grocery, Ghost Kitchens, and Delivery collide?!! πŸͺ😸πŸ₯‘πŸš—

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WELCOME to $5.vc, your source of differentiated startup intel!
* We break down the new market indicators & behavioral consumer trends we're tracking, then figure out the unlock to growth & revenue.
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ICYMI in the last 10 weeks we covered:

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Search Engines are in such a mood.…

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Hyper-Casual Social Casino SMS Text Gaming is FIRE!

Get Dope Startup Ideas!


THIS WEEK’S DOPE NEW STARTUP IDEA COVERS:
* Grocery + Ghost Kitchens + Delivery πŸ”₯

WHAT WE KNOW:
* The Market Indicators & Behavioral Consumer Trends we've identified.
>> [ Grocery wants in on Ghost Kitchens! ]
As shopping patterns continue to evolve, grocers are investing in ghost kitchens
-Β thanks cale!Β https://twitter.com/caleweissman

In March, Walmart announced a partnership with a company called Ghost Kitchen Brands, that would open up as many as 50 ghost kitchens in locations in both Canada and the U.S. by the end of the year. Kroger made a similar announcement last October that it was trialing a similar concept at an Indianapolis and Columbus location.

β€œEvery player in the food industry is looking to expand their share of stomach,” said Jason Goldberg, chief commerce strategy officer at Publicis. During the pandemic, with restaurants mostly closed, grocers had the clear edge. Now, Goldberg explained, grocery stores are saying β€œwe want to win some calories from the restaurant industry.”

For Walmart, the idea is to capitalize on new types of customer behavior. β€œThere will still be people that eat in the stores, and there will still be people that eat food from a ghost kitchen in our stores, but there are also customers who want it brought to them and we want to be able to make sure that we can serve that customer as well,” said Darryl Spinks, Walmart’s head of retail services.

>> [ the lowdown on Kroger’s ghost kitchen team-up! ]
Kroger partners with Kitchen United for ghost kitchens in its grocery stores
-Β thanks amelia!Β https://twitter.com/Thxamelian

Kroger, the nation’s largest supermarket chain, and ghost kitchen start-up Kitchen United are teaming up to prepare takeout and delivery food inside some of its grocery stores.

The first kitchen center under the Kroger partnership is slated to open in a Los Angeles location of Ralphs this fall, with more sites planned for the rest of the year. Kroger’s vast portfolio includes Harris Teeter and King Soopers.

The kitchens will feature a mix of up to six local, regional and national restaurants. Customers will be able to order their food for pickup or delivery.

β€œOur work together provides participating restaurants access to millions of Kroger customers and the ability to better address off-premise demand in a convenient supermarket format β€” a frequent destination for most consumers,” Kitchen United CEO Michael Montagano said in a statement.

>> [ even DoorDash wants in on making your food! ]
DoorDash isn’t just delivering mealsβ€”it’s making them, too
-Β thanks michelle!Β https://twitter.com/mbcheng15

DoorDash, based in Palo Alto, California, says it will work with restaurant partners to learn how to cook their food, reproduce their recipes, recreate their supply chains, and secure the chefs, on top of providing the usual marketing and delivery.

Once it is up and running, restaurants could ask DoorDash to launch their take-out operations in any region and the food delivery company will make it happen for them, says Ruth Isenstadt, the director of DoorDash Kitchens.

So-calledΒ ghost kitchensβ€”which are essentially restaurants without a storefrontβ€”are a burgeoning business. Pre-pandemic, they were expected to account for 10% to 15% of the $66 billion US restaurant industry by 2025.

>> [ the secret sauce to Ghost Kitchens! ]
Some ghost kitchens shed shadowy image
-Β thanks joe!Β https://twitter.com/joeguszkowski

Ghost Kitchen operates all of its locations via licensing deals with the brands. Each kitchenΒ staffs about two or three employees who are cross-trained on the various concepts, which require only light cooking.Β 

β€œWe focused on brands that A, we can execute, and B, we focused on great brands that maybe don’t have the distribution that they would like right now,” Choy said.

β€œWhy use real estate to offer one brand when you can use that 3,000 square feet, put a ghost kitchen in and offer 15 different brands?” he said of partnering with nontraditional locations.

Ghost Kitchen's goal is to have 800 U.S. units, or enough to reach every urban consumer within 30 minutes, Choy said.


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THE DOPE IDEA & THE BRAND EXECUTION:
* Taking the idea and amplifying that into tactical action.

See you next week for the second half of our two-part report.

We’ll discuss on how to position ourselves as a new player in theΒ Grocery + Ghost Kitchens + DeliveryΒ space β€” and get into the development of the Brand IP, securing a legit Domain Name, then making it Internet LIVE.


JACK & TWITTER:
* If you liked today’s drop, give us a quick shout &Β follow onΒ Twitter!
** Thank you 3000! 🀟

YOUR SIDE-HUSTLE:
* Want to work on ideas like this? Let us know! 🍻
** Email us at:Β venture@5dollarVC.com

Copyright Β© 2021 $5.vc - All Rights Reserved
What is $5.vc?
$5.vcΒ is a concierge advisory service of product, marketing, and branding strategists specialized in naming & brand development, product market fit, GTM strategy, growth & retention modeling, and new market segmentation.
Interested in working together?
We work with a limited number of clients at a time to ensure the highest quality of work. Please fill out ourΒ Advisory Services Typeform, and our team will be in touch as soon as possible.
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Yes, but limited to $5.vc annual subscribers only. Any negotiated sale typically includes the transfer of domain, any collected emails from said domain, and any agreed upon advisory services from $5.vc (deal terms will vary). To get in touch, please fill out ourΒ Sales Inquiry Typeform.
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