Kroger is placing “ghost kitchens” in 2 of its grocery stores in a bid to expand into meal delivery.
The kitchens will serve over 80 dishes and meals will be delivered within 7 minutes of being prepared, and 30 minutes of being ordered, on average.
Many retailers see “ghost kitchens,” “dark stores,” and “virtual stores” as an opportunity at a time when Americans are choosing delivery options over visiting a brick-and-mortar location.
Grocery giant Kroger is converting 1,200 square feet in two of its stores to “ghost kitchens,” the company announced on Thursday. “Ghost kitchens,” also known as “dark kitchens,” are dedicated to fulfilling online delivery orders and do not offer a traditional dine-in option.
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Kroger and ClusterTruck, a meal-delivery startup collaborating on the initiative, said that its ghost kitchens will have a menu of more than 80 meals and a preparation-to-delivery turnaround of seven minutes, and an order-to-delivery time of 30 minutes, on average.
The grocery store said it’s launched the concept at its Fishers, Indiana location and will launch a second at its Dublin, Ohio store later this year.
The new kitchens are the latest move from retailers looking to reach customers in lockdown and add to their offerings to meet changing ordering habits. “Ghost kitchens” and “dark stores” have captured the imaginations of businesses from Wendy’s to Sweetgreen to Chik-fil-A. Pre-pandemic, the option gained traction among vendors looking to boost delivery revenue and jettison customer-facing infrastructure. Mid-pandemic, the business model has become even more attractive.
Gallery: 10 huge companies, from Amazon to UPS to Home Depot, that are each looking to hire at least 20,000 people (Business Insider)
10 huge companies, from Amazon to UPS to Home Depot, that are each looking to hire at least 20,000 people
As the coronavirus pandemic roils the economy, more than 13 million Americans are out of work.
But the pandemic has hurt some industries more than others: delivery businesses and grocery stores continue to do well.
We’ve rounded up some of the biggest companies that are hiring right now.
With more than 13 million out of work and 884,000 people filing for unemployment just last week, Americans are on the job hunt, according to the Department of Labor.
Since the outbreak of the COVID-19 pandemic many American industries, especially in the travel, hospitality, and retail sectors, have struggled. Lord & Taylor shuttered its stores. United employees face layoffs and furloughs.
But other companies are looking to grow — and some are even thriving — as life settles into a new normal. Delivery businesses, grocery stores, and budget options are reigning supreme right now, and that means that they need to beef up their workforces to keep up with demand.
Take a look at following 10 companies, all of which are looking to hire at least 20,000 employees right now.
Instacart is looking for 300,000 shoppers, according to Linkedin.
The good news: Since the start of the pandemic, Instacart’s grocery delivery service has seen record demand, as options like “leave at my door delivery” cater to customers looking to decrease COVID-19 risk.
In the news: Instacart shoppers have also gone on strikemultiple times since the start of the pandemic, calling for hazard pay and hand sanitizer. And longtime Instacart contract workers have said working conditions have worsened since Instacart started hiring 300,000 new shoppers to fill the surge in demand.
McDonald’s is hiring 260,000 over the summer, according to LinkedIn.
The good news: McDonald’s is collaborating with Travis Scott to reach Gen Z customers. Restaurants will debut special $6 meal combos featuring Scott’s favorite menu items, and Scott will sell McDonald’s merch like $90 McNugget body pillows as part of his “Cactus Jack” brand line.
In the news: 52 Black franchise sees are suing McDonald’s, alleging discrimination. One franchisee claimed that the fast-food giant sent him on a “financial suicide mission.”
UPS is hiring over 100,000 people in anticipation of a booming holiday season.
The good news: UPS saw a record increase of 22.8% in package volumes from April to June, over last year.
In the news: While individual package volumes are up, it’s a “curse in disguise,” according to a prior Business Insider report. Business-to-business deliveries, which are far more profitable since UPS can deliver more packages per stop, are down.
Albertsons, the parent company of Safeway and other supermarkets, is hiring 50,000 people.
The good news: In July, Albertson’s reported a 26.5% surge in same-store sales, as consumers spend big on groceries over eating out, according to Reuters.
Amazon says it’s hiring 33,000 people, from warehouse staff to software engineers.
Hardware store giants Lowe’s and Home Depot are hiring 30,000 and 22,000 people, respectively.
The good news: Quarantined in their houses and apartments, consumers are spending buckets on home improvement. Home Depot reported a 23.5% year-over-year increase in sales in the second quarter.
In the news: This year’s most unexpected pairing is… Lowe’s and New York Fashion Week. The hardware store is curating backdrops for Jason Wu, Rebecca Minkoff, and Christian Siriano “inspired by each designer’s definition of home.”
Walmart is hiring 50,000 people at distribution and fulfillment centers.
The good news: Walmart is launching its own Amazon Prime-style delivery service, called Walmart+. And the company’s e-commerce has grown 97% since last year.
In the news: Turns out Safeway isn’t the only store with a licking problem. In May, a Missouri man was arrested after he posted a video on social media of him licking deodorants in an aisle of Walmart, to mock fears of COVID-19.
Dollar General is hiring 50,000 employees, according to LinkedIn.
Domino’s is hiring 20,000 workers, according to Reuters.
Good News: Domino’s is one of the few restaurant chains to report good sales, as the coronavirus pandemic has shuttered many dine-in operations and consumers turn to ordering delivery. In the second quarter, US stores saw sales increase 16.1%.
In the news: Domino’s New Zealand ran a promotional offer giving a free pizza to “law abiding Karens.” It didn’t go over well.
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Last month, Burger King released a redesign of its restaurant that shrinks dining space in lieu of take-out cubbies and greater space for drive through and curbside pick-up options.
In August, delivery app DoorDash created a “virtual convenience store” called DashMart. At DashMart, customers can’t browse through aisles, basket in hand, looking for the right shampoo, but they can select one on an app and have it delivered to their door. Similarly, Whole Foods decided to close at least six locations to customers in favor of a “dark store” model, which prohibit customers from entering and has employees do the shopping for pick-up or delivery to minimize virus exposure, according to prior Business Insider reporting.
“The new on-premise kitchen, in partnership with ClusterTruck, is an innovation that streamlines ordering, preparation and delivery … as we navigate an unprecedented health crisis that has affected every aspect of our lives, including mealtime,” Dan De La Rosa, Kroger’s group vice president of fresh merchandising, said in a statement.
ClusterTruck, the startup that worked with Kroger to create this new dining option, specializes in making software platforms for delivery-only kitchens. The startup launched its first kitchen in 2016. To date, the startup has raised $28 million in funding, according to Pitchbook. In its most recent fundraising round in July, the company received $2 million, according to Pitchbook.
Usually, “ghost kitchens” are operated as a clean break from customer-facing services, without a take-out or dine-in option, but Kroger’s locations will allow for takeout orders. The company piloted a version of the ghost kitchens that were located separately from its grocery stores in 2019, but has since decided to pursue an in-store concept, the company said.