Kroger has partnered with Kitchen United at the grocery store Ghost Kitchen

Rendering of Kroger Grocery Kitchen United Space

Source: Kroger

KrogerKitchen United, the ghost kitchen start-up, the country’s largest supermarket chain, is working with several grocery stores to prepare food for takeaway and delivery.

The partnership connects Kitchen United’s goal of aggressive expansion with Kroger’s customer demand for fresher meals, announced Wednesday.

Both companies saw a surge in demand during the pandemic, Today, consumers are facing challenges as they return to eating out in restaurants. Industry experts predict a slowdown in delivery sales, which could diminish the restaurant’s desire to partner with Kitchen United. On the other hand, Kroger and its portfolio of brands have the potential to help consumers reduce their grocery spending.

Ghost Kitchen, also known as Cloud, Commissionary, Dark Kitchen, Allows the restaurant to strictly prepare food for delivery. Multiple brands may share a kitchen under one roof. The model is touted as being more efficient and reducing restaurant labor costs and rent. The pandemic distribution boom has raised the interest of investors and operators in ghost kitchens, Some experts have become concerned about intensifying competition and supersaturation.

The first kitchen center under the partnership will open in Los Angeles, Ralphs this fall, with more sites planned for the rest of the year. Kroger’s vast portfolio includes Harris Teater and King Supers.

The kitchen is a mix of up to 6 local, regional and national restaurants. Customers can order food for pick-up or delivery.

In a statement, Kitchen United CEO Michael Montagano said, “With our help, participating restaurants will have access to millions of Kroger customers and will be able to better meet off-site demand in a convenient supermarket format. Will be.

Kitchen United has raised $ 50 million in funding since its inception in 2017. Alphabet Google Ventures among investors. So far, it has opened six stores nationwide and plans to open its first New York City Kitchen in Midtown Manhattan this fall.

Kitchen United’s footsteps already include transactions with other retailers. Earlier this year, California’s Westfield Valley Fair Mall Kitchen United Technology To facilitate takeaway orders. Other malls are also looking to ghost kitchens as a way to increase foot traffic and increase restaurant sales. 2020, mall operator Simon property When Accor, Hotel owners cooperated to launch C3, a virtual kitchen company.

Similarly, this is also not Kroger’s first partnership With a ghost kitchen company.. In 2020, we signed a contract with ClusterTruck, which has a different business model from Kitchen United, and opened an on-premises kitchen at Kroger’s location. Other investments to serve customers with fresh food include the acquisition of Home Chef in 2018 and a deal to introduce a small number of Saladworks restaurants in Midwestern stores.

Kroger’s stock rose 34% this year, bringing its market value to $ 31.8 billion.

Kroger has partnered with Kitchen United at the grocery store Ghost Kitchen

Source link Kroger has partnered with Kitchen United at the grocery store Ghost Kitchen

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