In what seems like a new twist on the sharing economy, a ghost kitchen is also known as a virtual kitchen. Authentic. If you haven't heard of ghost kitchens before, it's probably a wise idea to familiarize yourself with the term as the restaurant model could take off in coming years. It's shown so much potential, the likes of former Uber CEO Travis Kalanick and Alphabet venture capital division GV have invested heavily in the concept. Local customers will be able to simultaneously order menu items from Elevation Burger and Hurricane Grill & Wings concepts. Kitchen United is backed by Google's venture branch, GV, and Amazon recently announced its foray into the market. Appreciate my writing, have an idea for me, or is there an issue with something I wrote? Restaurants heavily concentrated in expensive labor markets, like California, are particularly vulnerable as the minimum wage continues to creep up. The owner of Chili's and Maggiano's Little Italy expanded the It's Just Wings concept nationally after testing it on a limited basis since November, meaning it will be available at over 1,000 locations. In what seems like a new twist on the sharing economy, a ghost kitchen is also known as a virtual kitchen. Elevation Burger is the first organic burger chain created in 2002. By using this site you agree to the This rapid rise leaves restaurants searching for ways to use delivery to grow comparable sales, while not killing their operating margins with high delivery fees paid to third parties. About FAT (Fresh. Market data powered by FactSet and Web Financial Group. Returns as of 11/08/2020. Is there a problem with this press release? We are also eager to introduce Hurricane Grill & Wings to the local community for the first time.". Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Cookie Notice. Feel free to reach out to me at jon.quast@foolcontractors.com. "While Elevation Burger is new to the ghost kitchen realm, it already has an established following in the area that we look forward to building upon. Many restaurants already have razor-thin margins and have limited options to unlock profitability. Brinker International (NYSE:EAT) has launched a national delivery-only chicken wings chain "virtually overnight" as it confronts the challenges to eat-in dining due to the coronavirus pandemic. These benefits may prove too good for restaurant chains to pass up. Cumulative Growth of a $10,000 Investment in Stock Advisor, Why 'Ghost Kitchens' Are the Next Restaurant Frontier @themotleyfool #stocks $GOOGL $SBUX $UBS $GOOG $GRUB $BABA $UBER $WING $LKNC.Y, Why Penn National's Stock Dropped 25.7% in October, Why Dave & Buster's Shares Jumped 12.2% in October, Why TAL Education Stock Fell 12.6% Last Month, Why World Wrestling Entertainment Stock Dropped 10.2% Last Month. Starbucks may be motivated to test new ideas given the rise of Chinese coffee competitor Luckin Coffee (OTC:LKNC.Y). As a premium fast-casual burger restaurant, Elevation Burger is committed to elevating standards with quality food that makes a difference to the guests and the environment. Have a story idea? What's great about exploring business and the economy is the insight it gives you into how things are in the world. Returns as of 11/08/2020. The company believes ghost kitchens will complement existing restaurant operations, rather than replace them. Copyright © 2020 MarketWatch, Inc. All rights reserved. The MarketWatch News Department was not involved in the creation of this content. For more information visit https://hurricanewings.com/, MEDIA CONTACT: Erin Mandzik, JConnellyemandzik@jconnelly.com862-246-9911, COMTEX_373807911/2471/2020-11-02T09:00:22. While I no longer get to exercise my analytical muscles with linguistics, it's rewarding to analyze business and share my opinions through this platform. CloudKitchens isn't the only ghost-kitchen startup making waves. According to Nation's Restaurant News, the coffee giant has partnered with Alibaba in China to develop a ghost kitchen model. After spending more than a decade travelling the world exploring different cultures and languages, I'm happy to now be contributing to the Motley Fool's mission to make the world smarter, happier, and richer. 'Ghost kitchens' emerge in Canadian food scene. With more than 55 restaurants located across the United States, Florida-based Hurricane Grill & Wings(R) is known for its jumbo, fresh wings, more than 35 signature sauces and rubs and tropical, laid-back vibe. Virtual kitchens and so-called ghost kitchens have grown in popularity during the pandemic, but Brinker's national footprint gave the concept immediate scale. The new ghost kitchen will operate through third party delivery services Uber Eats, Postmates, DoorDash, and Grubhub for both delivery and pickup. Having made the streets safe for Truth, Justice, and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. It can grow at this pace largely because of its small-store format, including the use of ghost kitchens (which it refers to as "delivery kitchens"), which lend themselves particularly well to densely populated, urban areas. Stock Advisor launched in February of 2002. Labor costs are kept at a minimum. Wingstop has also mentioned New York City as a prime location for the ghost kitchen model. UBS Group predicts that food delivery worldwide could become a $365 billion market by 2030, up from what it says was a $35 billion market in 2018. It is testing the installation of Plexiglas barriers to get around the constraints. I may not be able to respond to every suggestion, but I do read them all! What are ghost kitchens? Pilotworks, a ghost kitchen company, ceased operations in late 2018, despite raising $13 million less than a year earlier. Shareholders of Wingstop and Starbucks should take comfort in knowing these companies are proactively looking for ways to thrive in ever-changing environments, rather than floundering to course-correct. Global Franchising Company Expands in Philadelphia with opening of new Elevation Burger and Hurricane Grill & Wings Ghost Kitchen. Luckin had 717 net openings in the third quarter of 2019 alone -- for 24% unit growth quarter over quarter. The mission? What Is Ollie's Bargain Outlet's Biggest Competitive Edge? It highlighted the progress it's making toward reaching its goal of becoming a top 10 global restaurant brand. Stifel Financial analyst Chris O'Cull viewed the creation of "a new restaurant chain with 1,000 distribution points virtually overnight" positively and maintained his buy rating on the stock. Think an article needs a correction? Although the wings will be prepared in Chili's and Maggiano's restaurants, It's Just Wings will be a distinct brand within Brinker's family of chains. See you at the top! Cumulative Growth of a $10,000 Investment in Stock Advisor, Chili’s Parent Brinker Creates a National Delivery-Only Wings Chain “Virtually Overnight” @themotleyfool #stocks $EAT $DRI $SF, Brinker International (EAT) Q1 2021 Earnings Call Transcript, Restaurant Stocks Are Rallying -- Here's Why You Should Avoid Them, 3 Changes Restaurant Companies Are Making After the Coronavirus, Brinker International (EAT) Q4 2020 Earnings Call Transcript, Why Brinker International Stock Jumped 14.5% on Wednesday, Copyright, Trademark and Patent Information. PHILADELPHIA, Nov 02, 2020 (GLOBE NEWSWIRE via COMTEX) -- Privacy Notice and Chili’s Parent Brinker Creates a National Delivery-Only Wings Chain “Virtually Overnight” This new type of ghost kitchen could be what saves restaurants after the COVID-19 pandemic. For now, investors should focus on delivery trends and the growing cost of labor. All quotes are in local exchange time. Authentic. Dow futures rise 225 points as investors ready for Biden presidency, Trump campaign’s election-fraud claims aren’t really designed to win in court, Former Fox News anchor Megyn Kelly taunts Joe Biden, tangles with critics, Joe Biden’s pandemic plan: mandatory masks, paid sick leave, restoring Obamacare and free COVID-19 tests, How the election can affect your investments, How Trump lawyer Giuliani’s Four Seasons press conference ended up at a garden center on Philadelphia’s outskirts. ... Stock … Management was clear that while Wingstop does want to experiment with this idea, it wants to be careful not to infringe on any franchisee's territory. These virtual or "ghost" kitchens bring multiple restaurants under one roof to cook up food intended only for pickup or delivery.