Many industries have had to adjust during the pandemic. Restaurants, in particular, couldn’t accommodate dine-ins because it could further the spread of the coronavirus. But as the United States bounces back from the devastating effects of the pandemic, it’s clear that many businesses want to revert to their pre-pandemic life. But Wendy’s has a different idea in mind.
Before we learn more about Wendy’s plans, know what ghost kitchens are.
What are Ghost Kitchens?
Ghost kitchens are spaces where food operators can prepare and cook their menu and have that food delivered to customers immediately. It’s a low-cost solution allowing many restaurants to take up space in a ghost kitchen without a hitch. It’s unheard of that ghost kitchens would have a dine-in set-up, but there are cases where ghost kitchens allow pick up and takeout.
The rise of ghost kitchens can be attributed to the COVID-19 pandemic. Ghost kitchens have become a lifesaver for small food operators. Plus, they have made it possible for smaller food operators to become more accessible to the public. After all, delivery apps such as Grubhub, Doordash, or Ubereats have partnered with ghost kitchens. In some cases, these apps own a virtual kitchen.
Cinnabon, Wingstop, The Cheesecake Factory have also taken up space in ghost kitchens. Or, in the case of Inspire Brands (Sonic, Arby’s), some are about to set up their ghost kitchens.
The Wendy’s and Reef Kitchen Partnership
The well-known fast food chain Wendy’s will partner with Reef to open over 700 virtual kitchens by 2023. They plan to open these kitchens across the United States, Canada, and the United Kingdom. Their goal by the end of 2021 is to open 50 virtual kitchens. Currently, there are eight test Reef ghost kitchens in Canada.
Plus, globally, Wendy’s is available in several kitchens as franchises. Reef will also carry the franchise label. In addition, the ghost kitchen company will be the first Wendy’s franchisee in the UK, even if the fast food chain has over 400 restaurants there.
Todd Penegor, CEO of Wendy’s, estimates that they can earn over $1M in sales once their ghost kitchens are up and running. Aside from having more Wendy’s in urban areas, ghost kitchens can provide convenience to areas not serviceable by the fast food chain.
Even before the pandemic hit, the fast food chain had been ahead of the game. Wendy’s chief development officer, Abigail Pringle, said they had already designed a plan to place the fast food chain in ghost kitchens. Their interest in virtual kitchens is based on the low cost to run their restaurant. Plus, having Wendy’s in virtual kitchens can even increase sales.
One disadvantage of having a Wendy’s in ghost kitchens: limited menus. Some products could be available locally.
Reef and Their Permits
As exciting as this partnership will be in the next few years, Reef has been in hot water for the past couple of weeks over their lack of permits. Their New York kitchen has stopped operations temporarily after the Health Department has concluded that it violated health and safety conditions. Other food operators affected in the establishments are Nathan’s Famous and Fuku.
Such is the case in their Houston kitchen. Health officials in the city also found that Reef has not been operating with licenses that certify health and safety. Plus, there have been cases where permits were shuffled between kitchens.
An ex-operations manager has also divulged that Reef doesn’t have permits for over 50% of their locations.
Investigations done by the health departments of these cities can contribute to further scrutiny of other Reef and ghost kitchens.
Plus, Wendy’s partnering with Reef can affect their operations and goals to meet their target number of kitchens. Still, the fast food chain has over 300+ Reef locations to open up their ghost kitchen.
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