OnTrend Concepts

July 21, 2022

Peter Cook, Editor

Some big announcements and interesting articles this week.  Lots going on.  Make sure you stay up to speed on the industry through this digest, the Ghost Kitchen Group on LinkedIn and our in-person events.

OnTrend Concepts is building relationships with delivery kitchen, delivery, and foodtech leaders around the world.  Right now we have trips planned for later this year to London, Amsterdam, Madrid, and Dubai.  Let us know if you are in any of those locations (or have colleagues there) and would like to meet.  We’d be happy to do so!

And now, the news…

Issue #102

Wall Street Journal: Grubhub Hustles to Catch Up in Business It Once Led

Deal providing access to Amazon’s Prime members gives delivery company new ammunition against DoorDash, Uber

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REEF Launches First Ever "Virtual Food Hall" at Raleigh-Durham International Airport

Travelers will be able to digitally order from 9 restaurant concepts for pick-up and gate side delivery.

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Travis Kalanick $15 Billion Cloud Kitchens Taps New Chief Revenue Officer and Gears Up for a Sales Hiring Spree

Business Insider (subscription required, sorry!) shares some info about the ghost kitchen company that likes to stay under the radar.

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Chick-fil-A to Open ‘Little Blue Menu’ Ghost Kitchen in College Park, MD

Named after the menus at the original Chick-fil-A, the service will offer food for delivery from Chick-fil-A and four virtual restaurants. The College Park location would be the second for Little Blue Menu, which opened in Nashville in October of last year. Another location is planned for Atlanta.

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Kroger, Kitchen United MIX Open 1st Location in Dallas

New virtual food court in Mockingbird Kroger features national and local brands available for takeout or delivery.

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Foodja Expands to Dallas, Partners With Local Restaurants to Offer Professional Workplace Delivery

Foodja, the country’s leading workplace restaurant delivery platform, has expanded to the Dallas market, providing professional meal delivery from local restaurants to offices throughout Dallas County. As a purpose-built platform and service, Foodja was developed exclusively to meet the unique needs of workplaces.

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C3’s chief strategy officer is out

Pasha Mehran is no longer the chief strategy officer of virtual restaurant platform C3, a C3 spokesperson said in an email.

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How to Build the Most Profitable Restaurant Pricing Strategy

In a world where supply costs are on the rise and labor is increasingly scarce, you as a restaurateur may be wondering how to maintain a strong profit margin.

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Video: DoorDash & The Myth of Profitable Food Delivery

In this episode, we’re going to look at the four biggest food delivery companies around the world from DoorDash, UberEats, Delivery Hero, and Just Eat. What are the strategies that these companies believe will lead them to profitability? Are these just fantasies spun for investors and which companies have made the most progress?

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Podcast: Food Delivery News Interviews Vishal Agarwal, founder and CEO at ItsaCheckmate

Vishal believes that third-party and first-party delivery can exist together and sees technology as a tool to help restaurants.

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Dine Brands International Continues Global Expansion with IHOP® Restaurant Franchisee Deal in Western Saudi Arabia

Dine Brands International announced plans to open five new IHOP restaurants in the western Kingdom of Saudi Arabia (KSA), with the first location scheduled to open in Jeddah in early 2023. The agreement with IHOP Franchisee Ahmed Marashde is a show of IHOP’s continued expansion in the Middle East, further illustrated by the successful IHOP opening in Cairo, Egypt at the Cairo Festival City Mall and continued ghost kitchen expansion within the region.

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Subway is Ready to Crack its International Growth Potential

Eight master franchisees signed deals for nearly 5,000 locations in the past year. Working with master franchisees in the region has allowed us to pilot innovative new formats. In Kuwait for instance, the master franchisee has opened 10 ghost kitchens.

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UK: Tortilla Mexican Grill eyes further expansion as cost pressures squeeze rivals

The Tex-Mex food chain added revenues in the first half of 2022 were 60% higher at £26.9mln compared to 2019, with like-for-like sales up 19%. That included a small contribution from Chilango, acquired in May for £2.75mln, which added eight sites plus one delivery kitchen and takes the number of sites open throughout the UK to 84 (58).

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UK: Heinz Means Business: Food Giant Looks to Create Network of Virtual Kitchens

Food manufacturer Heinz has entered the virtual restaurant market with a breakfast concept launched in partnership with The Lean Kitchen Network.

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UK: Addison Lee CEO backs food delivery start-up taking on Deliveroo and JustEat

Liam Griffin, the chief executive of London minicab company Addison Lee, has made a six-figure investment in new food delivery app which is taking on the biggest names in the sector.

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UK: Starship delivery robots to be rolled out across Bedford and Kempston by Co-op

A fleet of grocery delivery robots is heading to neighbourhoods in Bedford thanks to an exciting pilot project between Bedford Borough Council and Starship Technologies in partnership with the Co-op. The collaboration will see 20,000 households in Bedford benefit from quick deliveries from three local Co-op stores in Goldington, Queens Drive and Kempston.

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Spain: Cuyna Raises €23M and Aims to Double Network in the Next 12 Months

The project led by Jaime Martínez de Velasco around what began to be known as dark kitchens and that has evolved in the virtual kitchens of cuyna achieves the support of Big Sur Ventures, Clave Capital, Shilling and LIFT Asset Management to double its network in the next 12 months.

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France: Just Eat to cut 390 jobs and restructure in France

In an emailed statement obtained by Reuters, a JustEat spokesperson said the decision was taken to improve the company’s profitability and would affect around 350 couriers and 40 staff.

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UAE: Pay hikes, lounge areas: UAE delivery companies improve riders' working conditions

Several delivery service companies across the UAE are improving their riders' pay and working conditions. This comes after a tough year for most delivery services, with many riders complaining of being underpaid and some refusing to work.

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India: Rohit Kapoor quits Oyo, may join Swiggy as food-delivery CEO

Rohit Kapoor, who was elevated to a global chief marketing office role at Oyo in major reshuffle in March this year, has resigned from the company, people familiar with the matter told ET. Sources familiar with the matter said he is in talks with Swiggy to join them as their chief executive officer (CEO) of the food delivery business.

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India: Navalprabha Foods wants to become the dark kitchen for D2C brands

This Jalgaon-based white label manufacturer, which supplies premixes for dhokla, gulab jamun, idli, dosa, vada, ice cream, and cakes to FMCG companies, is now focused on D2C brands.

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Singapore: Singaporean firm acquires local food delivery service

Singapore-based Society Pass Inc. has acquired Mangan.ph, the local restaurant delivery service in the Philippines with operations mainly in Central Luzon.

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Sri Lanka: Pizza Hut Launches the “Hut Cyclist” Initiative to Strengthen Delivery During Fuel Crisis

The new initiative is a bid to mitigate the fuel crisis faced by drivers and will include 217 LKR per delivery in addition to tips.

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