Latest Front in Food Delivery: Kitchens in Empty Malls

Food industry keeps evolving, and the latest innovation is building kitchens in empty space areas such as parking lots. These are called “ghost” kitchens and they are meant to make food delivery more convenient and accessible to its customers, while they also have a chance to eat “restaurant quality food.” These kitchens are small and are intended to have no dine in area to reduce costs.

The investment group SBE entertainment, plans to open 85 kitchens this year, and have profits within six months of the opening on each location. Their goal is to have more than double their ghost kitchens by 2021. The investment group also plans to rely on companies such as uber eats and door dash for delivery services, which opens the doors for more employment through these companies. However, in California, these companies will soon be facing tough times, according to Door dash CEO Tony Xu.

According to Bernstein Analysis, food delivery makes up 9% of the U.S food sector. It is expanding more and more. Door Dash CEO Tony Xu told the WSJ that with the approval of AB5 in California, which deals with contractors, it will impact the way things are negotiated, it affects drivers’ personal needs and it also makes delivery at a higher cost for customers. Xu mentions that, “it takes away money from local business, retailers,” so could a ghost kitchen not be so much the solution in California as it will be in New York? In California specifically, AB5 has a political impact because companies like Door Dash will have to increase their delivery costs before profits.

This article relates to target market. “Ghost” kitchen companies are working to make it more convenient for their customers to grab lunch at the least amount of time. Their target market seems to be a busy class of individuals because they are trying to reach out by settling at nearby places that are convenient for customers such as malls, or parking lot spaces while cooking “restaurant quality food” at a minimal time expense. They want to keep a low price in their product by avoiding dine in areas and less employees, at an accessible location for fast delivery, and they want the ghost kitchens to provide quality product which is healthy food that contains restaurant quality items. For promotion, they should continue to promote through news and should look into making commercials or creating a social media platform for each location demonstrating their delicious plates, especially near lunch times.

I am interested in this topic because it is fascinating how the food industry is evolving and that drive-thru’s are no longer enough to satisfy customers time needs because consumers time is becoming more and more valuable. These kitchens have a sociocultural impact because individuals have a busy lifestyle and companies understand the importance of others time, so they develop innovative ways with the use of advanced technology, such as  smartphones and apps. All customers have to do is order food online and get it delivered through companies like door dash or ubereats wherever they are without them having to interrupt much of their busy time. Anyone can have delicious food service at their fingertips.

https://www.wsj.com/articles/latest-front-in-food-delivery-kitchens-in-empty-malls-11580644801?mod=hp_lead_pos12