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The rapid rise and fall of ghost kitchens
  + stars: | 2024-04-14 | by ( Kenneth Niemeyer | ) www.businessinsider.com   time to read: +4 min
Ghost kitchens are restaurants with no storefront and no seating that customers never see and which only do delivery. Several influencers and celebrities have used ghost kitchens to produce their own lines of food, like YouTuber Jimmy Donaldson, known online as Mr. AdvertisementAnd as quality issues and late delivery times worsen, some ghost kitchens are starting to see legal challenges. Cracker Barrel also opened its own virtual restaurant using CloudKitchens, another ghost kitchen group, according to Restaurant Business. The company owns three virtual brands, Banda Burrito, The Meltdown, and Burger Den.
Persons: , Jimmy Donaldson, Burger, Noah Schnapp, It's, TenderFix, Brinker, Kevin Hochman, Donaldson, MrBeast, Travis Kalanick, Kelli Valade Organizations: Service, Business, The New York Times, Kroger, Times, Restaurant Business, Banda, Denny's
Instacart, DoorDash, and other apps seem to be trying to roll back Seattle's new gig worker pay law. They say Seattle gig workers are making less and delivering fewer orders after many raised prices. But in the preamble to the survey, Instacart indicated it already had thoughts about how things were going. One poster, who included screenshots of the message, encouraged other Instacart shoppers to turn the pre-written letter to the city council around. Uber Eats and Grubhub have also put out statements saying that things have gotten worse for their gig workers since Seattle's law took effect.
Persons: , Instacart, they've, That's, PayUp, DoorDash, Dashers, Anna Powell, GeekWire, Powell Organizations: Service, Seattle City Council, Business, Instacart, BI, Walmart Locations: Seattle, Seattle's, DoorDash
Some restaurants are connecting callers to an AI voice service to place DoorDash and Uber Eats orders. Many people now place delivery orders online, but Kea's founder says restaurants sometimes struggle to handle phone orders. AdvertisementA new voice AI service means diners can place delivery orders with services like DoorDash and Uber Eats via phone call. The AI guides them through the transactions, including suggesting add-ons and recommending items they got in previous orders, Ahmad said. The delivery platforms that Kea can refer orders to are DoorDash, Uber Eats, Postmates, Grubhub, and Favor, Ahmad said.
Persons: DoorDash, Uber, Kea, , Adam Ahmad, Ahmad, Siri, , who'll, Olo, They'd, We're, NDAs — Organizations: Voice, Service, California Fish Locations: Kea, California
By the time he graduated in 2004, Berkowitz signed a lease to open Insomnia's first brick-and-mortar location, near another college campus in Syracuse, New York. Now, with Krispy Kreme looking to sell Insomnia, Berkowitz says he's "grateful for the journey." Seth Berkowitz estimates he spent roughly $150 on baking ingredients to start Insomnia Cookies. "2009 and 2010 [were] some of the hardest years ever at Insomnia Cookies," says Berkowitz, adding: "There wasn't anyone else to do it. 'Insomnia Cookies is a perseverance story'
Persons: Seth Berkowitz, Krispy, " Berkowitz, Berkowitz, he's, Grubhub, Uber, , Jared Barnett —, Barnett Organizations: CNBC, University of Pennsylvania, Syracuse , New York ., College Park , Locations: Syracuse , New York, Champaign , Illinois, College Park , Maryland, Syracuse, New York, Philadelphia
Hannah Bullerman rarely used food delivery services but ordered GrubHub when she was sick one day. She went to the lobby to pick up her lunch and was instantly attracted to the Grubhub driver. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. A few hours later, I didn't want to make lunch because I wasn't feeling well. I rarely used food delivery services but ordered chicken wings and fried pickles because I had a Grubhub coupon on my phone.
Persons: Hannah Bullerman, , Hoffman, Alec Hoffman, Alec, Grubhub, Bullerman, We're, we'd Organizations: Service, Business
New York CNN —Lyft and Uber will stop offering services in Minneapolis on May 1 after the city council overrode the mayor’s veto of a minimum wage for rideshare drivers. The city council on Thursday voted 10-3 in favor of the override, allowing rideshare drivers to be paid the local minimum wage of $15.57 an hour. “Everyone wants to see Uber and Lyft drivers get paid more. However, the analysis Frey referred to showed lower numbers — $0.89 per mile and $0.49 per minute — to make minimum wage. Minneapolis is debating the minimum wage as gig workers across the country are advocating for fair wages and job benefits.
Persons: New York CNN — Lyft, Uber, Lyft, , it’s “, Jacob Frey, ” Frey, Frey, Tim Walz, ” Lyft, – CNN’s Jennifer Henderson, Ramishah Maruf Organizations: New, New York CNN, CNN, Twin, WCCO, Minnesota Gov, Democrat, Uber, New York City Locations: New York, Minneapolis, Twin Cities, Minnesota, California
Bri, a single mom of four, is struggling to make ends meet driving for DoorDash and Walmart Spark. Bri turned to gig driving after a knee injury made her previous job at an Amazon warehouse untenable. Gig driving with a disabilityBri was a business owner in home healthcare, but once the pandemic struck, she lost access to many of her clients. She was unsure how long Amazon's disability payments would last, and gig driving was one of her only options. She's driving her daughter's car after she wrecked hers a few months ago.
Persons: Bri, , aren't, Lyft, Uber, DoorDash, She's, GrubHub, she's, hasn't, there's, I've Organizations: DoorDash, Walmart, Service, Business, Doordash, Amazon, Down, UPS Locations: Fort Worth , Texas, New York City, Galveston, Texas, bam, DoorDash
AdvertisementSome gig work services are offering a perk usually associated with traditional jobs: retirement savings accounts with matching contributions. Alexandrea Ravenelle, an assistant professor in sociology at the University of North Carolina, Chapel Hill, told BI she would like to see gig workers classified as employees of the platforms, not independent workers. Ravenelle said a better plan would be for companies to extend similar types of retirement benefits to gig workers as employees of those companies enjoy. The Robinhood program also offers gig workers on these platforms access to free financial counseling through GreenPath Financial Wellness, a nonprofit. AdvertisementSergio Avedian, a Los Angeles-based industry advocate for gig workers who drives for an app himself, often encourages gig workers to set aside money for retirement.
Persons: Robinhood, , Alexandrea, Hill, Ravenelle, Robinhood —, Doordash, Morgan Courtney, Courtney, Taskrabbit, Steve Quirk, they'll, Quirk, Sergio Avedian Organizations: Service, University of North, Financial, Workers Locations: University of North Carolina, Los Angeles, Idaho
AdvertisementFlexibility can be an illusionMost single parents with whom BI spoke said they valued the flexibility gig work gives them. Some single parents with disabilities said being able to take days off has helped them stay healthier and avoid burnout. This means that a higher percentage of single parents' earnings goes toward childcare costs, pushing some away from using childcare entirely. "These fluctuations and discrepancies can be devastating to individuals who don't have other mechanisms to make money, including single parents who are often operating on a single income," Greening said. AdvertisementIt's not easy for parents with older childrenThe issues single parents face still linger for those with older children.
Persons: Bri, Uber, Dara Khosrowshahi, Lyft, Uber hasn't, Susan, she's, Lindsey Cameron, Cameron, Cindy Lehnhoff, Lehnhoff, Bryant Greening, Greening, Starla, She's, Genesis, Paul, he's, It's humbling Organizations: Service, DoorDash, Walmart, Business, Wharton School, National Child Care Association, BI, Uber, Security Disability Insurance, Arizona State University Locations: Fort Worth , Texas, Grubhub, bam, Ohio, Jacksonville , Florida, Atlanta, Las Vegas
download the appSign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. I was drawn to his sense of humor, the way he put words on the page, and the bad boy glint in his dark brown eyes. I lacked confidence; I was in an industry that shredded what little I had, like last night's roast chicken. The man who left trash on the street for someone else to pick up was not a man whose values matched mine. When we met again months after the breakup, I didn't make the same mistake.
Persons: , glint, we'd, he'd, We'd, I'd Organizations: Service, Business Locations: Los Angeles, Hollywood, Canada
One laid-off worker said it was their fourth round of layoffs at Rivian, but anxiety was still high. download the app Email address Sign up By clicking “Sign Up”, you accept our Terms of Service and Privacy Policy . AdvertisementThis as-told-to essay is based on a conversation with a former Rivian employee who was laid off Thursday and spoke anonymously to protect their privacy. This is the fourth round of layoffs I've experienced at Rivian, so I'm a little bit jaded at this point. As much as I loved working for Rivian — I thought the culture was great, the people were fantastic, and the pay was really good — layoffs felt constant.
Persons: Rivian, they'd, , I've, messaged, I'm, It's, We'd, it's Organizations: Service, Chicago Tribune, Ford, Amazon, Gado, Rivian, Business Locations: Rivian, R1S
A Wisconsin Uber driver said working inconvenient hours gives him the best chance to make money. AdvertisementFor Ken Morris, an Uber driver based in Green Bay, Wisconsin, embracing unideal working hours is the best way to make money as a ride-hailing driver . “If you don’t want to drive, that’s probably when you should be driving,” Morris, 49, told Business Insider via email. In 2022, he took home roughly $14,000 as an Uber ride-hailing driver — about $1.1 per online mile driven — according to a document viewed by BI. These income figures include tips and bonuses and don’t account for driving expenses like gas, maintenance, and depreciation.
Persons: Uber, , Ken Morris, ” Morris, Morris, he’s, it’s, I’ve, haven’t, Lyft, Tipping, , Morris wasn't, he’d, Gridwise, it's Organizations: Service, Uber, BI, Locations: Wisconsin, Green Bay , Wisconsin
Over the past year, Uber drivers have told Business Insider that it’s gotten harder to make money . Gridwise told BI these earnings reflected the amount drivers took home after Uber took its cut of drivers' gross earnings. The average Uber driver’s earnings before expenses declined from $29 an hour in 2022 to $25 in 2023. Meanwhile, the average Uber Eats driver’s earnings fell from roughly $20 to $18 an hour before expenses — the average driver worked 27 hours a month. While Uber drivers saw the largest year-over-year decline in monthly pay, the average driver’s $25 an-hour earnings before expenses were still higher than any other gig.
Persons: Gridwise, Uber, it’s, haven’t, Lyft Organizations: Business, Bureau of Labor Statistics
Frustrated by falling pay and intensifying competition on delivery apps, some gig workers are turning to "bots" — apps and other programs that claim to help them optimize their earnings. AdvertisementBots can "negatively impact other drivers"Using a bot violates the delivery apps' terms for workers, the companies told Business Insider. One called "Spark Ninjas" supposedly captures orders automatically on Walmart's Spark delivery platform. Bots appear to be just one way that some gig workers are improving their earnings. Do you work for a gig delivery app like Instacart, DoorDash, or Walmart Spark and have a story idea to share?
Persons: , I'm, DoorDash, Para, illicitly, Sharell, Barshishat, there's, Spark Organizations: Service, DoorDash, Business, Indiana, Uber, New York Times, Walmart, Nike, Facebook, BI Locations: Indiana, DoorDash, Para, Texas
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Persons: You've, It's, You'll, We'll, you'll Organizations: Business, Venture, Business †, you've, Ink, Chase Travel, FDIC, Express, American Express, Dell Technologies, Adobe, American, Capital, One, Amex, FedEx, Grubhub, Supply, Walmart, Best, Dell, Air Canada Aeroplan, British Airways Executive Club, Marriott Bonvoy, Chase, Finance, Locations: AmexTravel.com, U.S, Chevron
BI spoke with another Walmart Spark worker who said they were deactivated immediately after trying to complete the identity verification late last year. AdvertisementGig workers for apps like Spark, Instacart, DoorDash, and Grubhub often have their accounts suspended with little notice or explanation. The rollout comes after some Walmart Spark drivers were found using multiple accounts under false identities to claim more orders and make more money. "The third-party identity verification tool is working as intended. "My account was deactivated after the identity verification," one post from November on r/Sparkdriver reads.
Persons: Chastity Lopez, Lopez, she's Organizations: Walmart, Drivers Locations: New York, Alabama
In this article AAPL Follow your favorite stocks CREATE FREE ACCOUNTApple Vision Pro Todd Haselton | CNBCIt's night. Here's what you need to know:What's goodApple Vision Pro Source: AppleI was skeptical when I first met with Apple to see the Vision Pro. Apple Vision Pro. Photos in the Apple Vision Pro Todd Haselton | CNBCI love the "spatial photos" you can capture using the cameras on the outside of the Vision Pro or with the latest iPhone 15 Pro and iPhone 15 Pro Max. Apple Vision Pro Todd Haselton | CNBC
Persons: Todd Haselton, Oregon's Mount Hood, I'm, I've, it's, Max, Joshua Tree, Slack, Barbie, It's, CNBC Apple Keychain, Siri, There's Organizations: CNBC, Apple Watch, UBS, Apple, Apple Vision, Vision Pro, Pro, Companies, Vision, Greyhound, CNBC Apple, Disney, Wars, Netflix, Spotify, YouTube, Amazon, Amazon Prime Locations: Oregon's Mount, U.S, Hawaii, White Sands
Besides tips and service fees, restaurants often also charge higher menu prices for delivery orders. AdvertisementOrdering takeout food for delivery might cost you twice as much as picking it up yourself, depending on the delivery service you use, according to a new study. AdvertisementFinanceBuzz compiled its data by ordering food from various national restaurant chains on DoorDash, Grubhub, Postmates, and Uber Eats. Delivery orders from the fried chicken chain were between 82% and 149% more expensive than pickup, depending on which delivery service customers ordered from. AdvertisementDo you work for Instacart, DoorDash, Walmart Spark, or another delivery service and have a story idea?
Persons: , FinanceBuzz, DoorDash, Grubhub, Uber, Gruhub Organizations: Service, Uber, Panda Express, Walmart Locations: Southern California, DoorDash
A San Francisco pizzeria appears to operate more than 70 virtual brands on DoorDash selling falafel, pasta, and wings. AdvertisementA pizzeria in San Francisco appears to operate more than 70 different virtual brands on DoorDash. Restaurants sometimes design their own virtual brands, but they can also host other virtual brands. Uber Eats removed 8,000 last spring and summer and DoorDash says it will remove brands that virtual brands quality requirements. Reddit users didn't seem surprised to discover that the Polk Street address operates a network of virtual brands.
Persons: Redditor, , N'Sert, Hoodline, We're, Fresco, DoorDash, Uber, they've, Philly, Polk Organizations: San, Service, DoorDash, Business, Polk, Fresco Inc, Google, Cupid's Locations: San Francisco, Burger, DoorDash
But gig delivery companies like DoorDash and Instacart say they don't plan to make any changes. AdvertisementIf you make deliveries as a gig worker, don't expect any changes from a new federal rule — at least, not immediately. But companies that rely on gig workers to make deliveries say they won't need to make any changes. Amazon, which employs gig workers through its Flex delivery arm, did not immediately respond to Business Insider's request for comment. Do you work for Instacart, DoorDash, Walmart Spark, Uber Eats, or another gig delivery service and have a story idea to share?
Persons: , Julie Su, Uber, Loyola University Chicago Professor Peter Norlander, I'm, Norlander Organizations: Service, Department of Labor, Labor, Department, Flex, Loyola University Chicago Professor, Wall Street, Walmart Locations: DoorDash
Some Airbnb guests have protested loudly that cleaning fees are too high and the chores some hosts request upon checkout are too onerous. For $49 a month, it's one less stressor for short-term rental property owners or managers in an increasingly competitive business. Courtesy of Can MonkeyCan Monkey has found customers by starting Facebook groups for Airbnb hosts and owners. Shapiro said he used to get kicked out of other Facebook groups for Airbnb hosts because he posted about Can Monkey, so he started his own. Can Monkey runners have seen guests throw out brand-new suitcases, expensive pool floats, and barely-used elaborate party decorations, he said.
Persons: , Marc Zagoury, Monkey, Alex Shapiro, Shapiro, Uber, hasn't, It's Organizations: Service, Business, Facebook Locations: Scottsdale , Arizona, Phoenix, Scottsdale, Miami, San Diego, Austin, Denver, Orlando, Nashville, Airbnbs
"2020 and 2021 were excellent, but things started to go downhill in 2022 and now 2023," Juan told Business Insider. AdvertisementSpokespeople for Amazon, DoorDash, and Grubhub confirmed to Business Insider that they put prospective delivery workers on waitlists in certain markets based on demand for deliveries. AdvertisementHere are some of the problems that delivery gig workers faced in 2023, varying from lower pay to greater competition to sudden deactivations. The companies that employ delivery workers oppose the laws. Do you work for Instacart, Walmart Spark, or another gig delivery service and have a story idea to share?
Persons: , Juan, he's, He's, hasn't, they're, Grubhub, Greg F, Greg, Instacart, Alexia Hudson, Daniel Danker, Hudson, Uber, GeekWire, Shipt Organizations: Service, Amazon, Business, Instacart, Walmart, Hudson, Bank of America Institute, New, New York Post Locations: Instacart, Southern California, Utah, California, Texas, Charlotte , North Carolina, Seattle, New York City, Juan
The highest state minimum wage in 2024 will be Washington state, at $16.28, up from $15.74. The state with the biggest jump in its minimum wage this year will be Hawaii, which is hiking it by $2. The push to raise it has gone on for years because minimum wage workers stuck at $7.25 have lost substantial buying power. But advocates for a higher minimum wage, including Holly Sklar, CEO of Business for a Fair Minimum Wage, would rather see it adjusted for inflation from where it was in 1968. “People replace tires they couldn’t replace or get their kids clothes.”For businesses, she said, consumer spending goes up because minimum wage workers will spend their additional earnings quickly.
Persons: Jana Bjorklund, won’t, Holly Sklar, Sklar, , ” Sklar Organizations: New York CNN, District, Columbia, New York State, Seattle, Uber, Business, , Washington, of Columbia Locations: New York, Maryland , New Jersey, New, New York City, Westchester, Long, Washington, California, Hawaii, Nevada, Oregon, Cities, Tukwila , Washington, Seattle, GovDocs, Flagstaff , Arizona, View , California, Denver , Colorado, Portland , Maine, Pennsylvania, New Hampshire , Alabama, Mississippi, Pike County, Alaska, Arizona, Colorado, Connecticut, Delaware, Florida, Maine, Maryland, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, York, Ohio, Rhode, Dakota, Vermont
But ghost kitchens are now crashing. Ghost kitchens are stripped-down commercial kitchens with no dine-in option. Sometimes called cloud kitchens, dark kitchens or virtual kitchens, ghost kitchens fulfill online orders from delivery apps like Grubhub and Uber Eats. Ghost kitchens also offered big chains a way to test new menu concepts, items and brands at lower rents and with less labor. So restaurants have shut down their ghost kitchens and funding for the concept has dried up.
Persons: Uber, Pat Greenhouse, , John Gordon, ” Wendy’s, Travis Kalanick, Applebee’s, , Stephen Zagor, ” John Gordon, Tiffany Hagler, Wendy’s, Kalanick’s CloudKitchens, ” Gordon Organizations: New, New York CNN, Big, Kroger, Reef Technology, Boston Globe, Technology, Wings, Columbia Business School, National Restaurant Association, Geard, Bloomberg, Getty, Butler Locations: New York, South Boston, Dobbs Ferry , New York, U.S
Microsoft had no official say with the board when Altman, the company’s key contact, was fired. That is partly as a hedge for the fact it has no control over the start-up’s board. It involves the holy grail of OpenAI’s work: achieving artificial general intelligence, or A.G.I. Scott Syphax, a corporate governance expert, told DealBook that the deal could raise red flags with regulators if it threatens the nonprofit’s tax-exempt status. Another area Syphax is watching: the valuation that Microsoft placed on OpenAI after its investment and whether it acquired the I.P.
Persons: Altman, Nadella, Kara Swisher, Brockman, , Microsoft’s, Scott Syphax, DealBook, Bill Gurley, Satya Organizations: Microsoft, Times Locations: , Grubhub
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