Specialist
C-level executive at Kitchen United Inc
Agenda
- Ghost kitchen industry trends and developments, focusing on the North American market
- Key industry growth drivers and implications for the restaurant and food delivery industry
- Concept economics and penetration opportunities
- 2021 outlook
Questions
1.
What are your expectations for the ghost kitchen industry over the next 12-18 months?
2.
You’re estimating the industry will double over the next 12 months. What should we assume as its current size?
3.
What percentage of kitchens in the US food service industry are leveraged for delivery only?
4.
Do you think the industry will keep doubling every year for the next 5-10 years, assuming the pandemic behind us at that point, or will this growth stall? If so, what will that look like?
5.
What are your thoughts on the industry’s growth drivers when removing the pandemic from the equation? You mentioned your 88-year-old father. Would he have adopted a delivery-only mechanism if the pandemic hadn’t happened?
6.
How should we think about ghost kitchen growth as a function of restaurant or food delivery platform growth? To what degree does one depend on the other for growth?
7.
Does the closure of mom-and-pop restaurants during the pandemic create growth opportunities for ghost kitchens? Were some of these restaurants already converting to the ghost kitchen model?
8.
You mentioned companies putting different concepts into a kitchen. Could you elaborate on the prevalent concepts and the underlying economics?
9.
What are the pros and cons for the different kitchen models, whether partly managed, fully managed or virtual?
10.
What are your thoughts on the strategies of food-delivery providers with cloud kitchens, such as Uber Eats, Swiggy or Grab? What are the implications for fully managed or virtual kitchens that rely on these platforms for consumer reach?
11.
Could you break down the fixed and variable costs for these average concepts vs the traditional restaurant operation? You mentioned the average concepts of the virtual vs the fully managed kitchen, and that these models are unsustainable.
12.
What percentages of a ghost kitchen’s cost base would typically be attributed to rent, labour and utilities?
13.
You mentioned models that are operated by established brands. Do you think concepts such as Tender Shack or Just Wings can continue growing, or are they likely to decline in H2 2021, or when the economy opens up post-pandemic?
14.
Do you have any estimates for expected EBITDA margin contributions? What might that look like for some concepts?
15.
Who will the industry’s winners and losers be post-pandemic?
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