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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
Last week, YouTube star MrBeast sued the restaurant firm behind his namesake burger brand. YouTube star Jimmy Donaldson used his fame to "torpedo" the burger brand, the VDC suit says. The lawsuit comes a week after Beast Investments sued Virtual Dining Concepts alleging that VDC had ignored the MrBeast Burger Brand. MrBeast Burger debuted in 2020 and is sold in hundreds of restaurants seeking to use excess kitchen space to earn additional revenue. The reality is that the overwhelming majority of customers were highly satisfied, and the product was excellent," the VDC suit said.
Persons: MrBeast, Jimmy Donaldson, Donaldson, Burger, MrBeast Burger, Donaldson's, Travis Kalanick's CloudKitchens, Dorothy Calba Organizations: Concepts, YouTube, Service, Beast Investments, Dining, Twitter, Burger, Kitchen United, Euromonitor Locations: Wall, Silicon, New York, MrBeast, Florida, Washington
The burgers' 'terrible quality' was the fault of a business partner, he alleged in a new lawsuit. His company alleged complaints raised to partner Virtual Dining Concepts “fell on deaf ears.”Get the inside scoop on today’s biggest stories in business, from Wall Street to Silicon Valley — delivered daily. Reef, which sells MrBeast Burger, has logged multiple consumer complaints about uncooked burgers, Insider previously reported. Representatives for Virtual Dining Concepts did not respond to Insider's request for comment. Insider's Brittany Chang wrote last year about eating a "mediocre burger" at a physical MrBeast burger joint in New Jersey's American Dream mall.
Persons: MrBeast, Jimmy Donaldson, Donaldson's, Travis Kalanick's, Burger, Brittany Chang Organizations: Service, YouTube, Beast Investments Locations: Wall, Silicon, New
Thousands of virtual brands continue to flood delivery apps like Uber Eats, DoorDash, and Grubhub. IHOP is launching a third delivery-only brand – a chicken menu by a "Stranger Things" star. Partnering with Noah Schnapp and Nextbite were a seamless fit to meet the consumer target for our newest Virtual Brand." Stranger Things star Noah Schnapp helped create a virtual chicken menu for IHOP. Nextbite's other celebrity-backed virtual brands include Packed Bowls by Wiz Khalifa and 'Wichcraft sandwiches by Tom Colicchio.
Wendy's had plans to open 700 locations through ghost kitchen operator Reef Technology. Wendy's Chief Financial Officer Gunther Plosch confirmed the chain's restaurant-growth projection is down as a result of slashing its ghost kitchen strategy. Wendy's said it currently has 16 Reef locations in the UK. At its peak in mid-2021, the SoftBank-backed startup operated more than 330 food trailers in the US and abroad. Jack in the Box ended its ghost kitchen partnership with Reef Technology in 2022.
Thousands of virtual brands are flooding delivery apps like Uber Eats, DoorDash, and Grubhub. According to a joint report by Grubhub and the market-research firm Technomic, 41% of independent restaurants are operating virtual restaurants. Uber Eats and GrubhubUber Eats and Grubhub do not label virtual brands. Our perspective is that a virtual restaurant is a real restaurant," Uber Eats told Insider. The Miami address for the virtual brand Sam's Crispy Chicken is listed as "MIA07-2" on the Uber Eats app.
Burger King's owner recently opened its first ghost kitchen, or digital food hall, in Miami. And recently, the parent of Burger King, Restaurant Brands International, opened its first ghost kitchen in Miami. Wonder is part ghost kitchen, part food delivery van, part meal-kit provider. These ghost kitchens on wheels, outfitted with cooking equipment and chefs, can be hailed through an app. The company, which ended its partnership with Miami-based Reef Technology this year, is not labeling the facility as a ghost kitchen.
Houston officials say Reef is no longer operating in the city, where it once had 29 trailers. The ghost-kitchen startup Reef Technology is no longer operating kitchen vessels in Houston, Insider has learned. But in January this year, Reef temporarily closed about one-third of its food trailers as it focused on large chains that generate more revenue than independent restaurants. A year ago, Reef operated at least 29 food trailers in Houston, according to the city's health department, which inspects the food trailers. The startup has been cited for operating trailers without permits in several US cities.
Jack in the Box, Burger King, and Popeyes have ended their expansion plans with Reef. Burger King, Popeyes, Jack in the Box, and Del Taco have ended their partnerships with Reef Technology, a ghost-kitchen startup. Health inspectors in Austin, Texas, suspended four Reef food trailers after a recent inspection last month. In mid-September, Philadelphia inspectors cited a Reef kitchen trailer for having the wrong retail-operating license, food-safety inspection records show. Are you a Reef insider with insight to share?
Austin health inspectors suspended four Reef food trailers after a recent inspection. And this month, Philadelphia inspectors cited a Reef kitchen trailer for having the wrong retail operating license, food-safety inspection records show. The company has previously said its engineless mobile kitchen vessels are difficult to inspect under existing permitting frameworks. "In every city where Reef operates, Reef seeks the appropriate permits," a Reef representative said in an email to Insider. The violation occurs when a kitchen trailer has not been authorized through the inspection process to sell and prepare food.
Burger King's owner recently opened its first ghost kitchen, or digital food hall, in Miami. Meet 7 nontraditional ghost kitchen startups. And, recently, the parent of Burger King, Restaurant Brands International, opened its first ghost kitchen in Miami. These ghost kitchens on wheels, outfitted with cooking equipment and chefs, can be hailed through an app. The company, which ended its partnership with Miami-based Reef Technology this year, is not labeling the facility as a ghost kitchen.
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