Wendy's, the popular fast-food chain, recently announced plans to open and operate 700 delivery-only kitchens over the next five years. The move comes after the success of its eight test delivery kitchens that opened in Canada in 2020. The brand will work with logistic hub and kitchens operator REEF to open 50 delivery kitchens in 2020 with the following 650 to launch by 2025.
"The demand for convenient delivery solutions means we must look for opportunities beyond our traditional restaurant formats, especially in dense urban areas," said Abigail Pringle, Wendy’s chief development officer.
Fast food access was revolutionized by the pandemic, prompting many consumers to opt for take-out rather than dine-in. The shift in consumer behavior will likely continue to evolve.
Fast-Food Delivery-Only Kitchens
Wendy's Announced Plans to Open 700 Delivery-Only Kitchens
Trend Themes
1. Delivery-only Restaurants - The rise of delivery due to the pandemic has created opportunities for fast-food chains to open delivery-only kitchens and meet the demand for convenient and contactless food options.
2. Logistic Hub and Kitchen Operators - As a result of the shift towards delivery-only models, there is an opportunity for logistic hub and kitchen operators to partner with fast-food chains and create a streamlined and efficient delivery process.
3. Dense Urban Delivery Solutions - With the growth of urbanization, there is a need for brands to look beyond traditional restaurant formats and embrace delivery-only solutions to meet the shift in consumer behavior towards convenient and on-demand food delivery.
Industry Implications
1. Restaurant - Fast-food chains are rethinking their traditional restaurant formats and exploring new delivery-only models, which can potentially disrupt the industry and create new opportunities for growth.
2. Logistics - The rise of delivery-only kitchens and partnerships between fast-food chains and logistic hub and kitchen operators presents growth opportunities for logistics companies to optimize their delivery process.
3. Real Estate - As the demand for delivery-only kitchens increases, there is an opportunity for real estate companies to repurpose existing spaces into kitchen hubs, thereby capitalizing on the trend towards contactless dining and delivery.