The fast casual segment looks much different today than it did 10 years ago. The concepts in this sector continue to disrupt the foodservice space, but they have to find new ways to do this.
Fast casual concepts are often the pioneers or the first adapters when it comes to new trends.
On the IOChangeMakers live stream, we sat down with Donna Josephson, SVP and CMO at Corner Bakery Cafe and André Verner, Partner and co-founder of Dog Haus to see how these brands continue to pivot in today's market to stay successful.
According to Foodable Labs, over 30 percent of the U.S. Restaurant industry is using some form of on-demand third-party ordering solution. But to handle the influx of these orders presents a new challenge. So this is influencing established chains to jump on the virtual restaurant bandwagon.
Both of these restaurant brands see potential in ghost kitchens or virtual kitchens due to the recent third-party delivery surge.
"We see that as an opportunity for us. We have a big physical plant right now and we may not always need that," says Josephson. "And instead of shunning it and pushing away third-party delivery, let's get in fast and put our arms around it and bring it in close."
Dog Haus announced earlier this month that the restaurants are starting to utilize ghost kitchens. By prepping some of these delivery orders off-site, it allows in-store kitchens to focus on in-store orders.
"We are committed with our Kitchen United relationship. It's something new for franchisees as well. To get a brick-and-mortar, at least for our size, it's about $600,000 to build a store, then you have to sign a 10-year lease and hire 40 new employees right away. You're committed," says Verner. "On a Kitchen United location, you sign a one-year deal. All the kitchen equipment is there. They do everything, they do all the equipment maintenance. They do everything except for staffing the three people in the kitchen."
So there are are less overhead costs involved in these virtual concepts.
Want to learn more about what these successful brands are doing to compete in today's market? Check out the video above or the full interview is also now exclusively available on Foodable On-Demand here.