Red Lobster is expanding its menu to a new ghost kitchen in Chicago, where consumers will be able to order their favorite dishes from the popular restaurant chain through third-party delivery services like UberEats, GrubHub, and Postmates, and DoorDash.
With the spread of COVID-19 still preventing many consumers from going out to eat, the ghost kitchen will enable Red Lobster to serve consumers in the area, without having to invest in an expensive brick-and-mortar location. To order from the ghost kitchen, consumers just need to go on the participating app of their choice and select the items they want for delivery.
CEO Kim Lopdrup spoke to the venture, stating "Off-premise is a huge priority for Red Lobster. We tripled our off-premise sales in the two years before COVID-19 began, and we’ve tripled them again over the last eight months. Opening a ghost kitchen is a natural next step in expanding our off-premise business. It will allow us to reach new customers who want great seafood with a touchless off-premise experience."
Delivery-Only Restaurant Chain Ventures
Red Lobster is Opening Up a Ghost Kitchen in Chicago
Trend Themes
1. Ghost Kitchen Expansion - Red Lobster's venture into ghost kitchens opens up opportunities for other restaurant chains to expand their off-premise business without the need for physical locations.
2. Third-party Delivery Services - The partnership between Red Lobster and third-party delivery services highlights the growing trend of consumers relying on convenient delivery options for their favorite restaurant meals.
3. Off-premise Sales Growth - Red Lobster's success in tripling their off-premise sales indicates a larger trend of customers seeking more flexible dining options, presenting opportunities for innovation in the food industry.
Industry Implications
1. Restaurant Chains - Ghost kitchens present a disruptive innovation opportunity for restaurant chains to expand their reach, reduce costs, and cater to off-premise customers.
2. Food Delivery Services - The demand for convenient food delivery is on the rise, creating opportunities for delivery service providers to partner with ghost kitchens and restaurant chains.
3. Mobile App and Technology - The reliance on mobile apps for ordering from ghost kitchens signifies a need for technology advancements in the food industry to streamline the delivery process and enhance the customer experience.