Food Business News - August 31, 2021 - 7

EDITORIAL STAFF
EDITORIAL
Editor-in-Chief
L. Joshua Sosland
Editor
Keith Nunes
Executive Editor
Eric J. Schroeder
Managing Editor
Monica Watrous
Senior Editors, Markets
Jay S. Sjerven
Ron Sterk
Senior Editor
Jeff Gelski
Associate Editor, Markets
Matt Noltemeyer
Digital Media Editor
Rebekah Schouten
Digital Associate Editor
Sam Danley
Contributing Editor
Donna Berry
Markets, Graphic Designer,
Purchasing Seminar Coordinator
Christina Sullivan
PUBLISHING STAFF
Publisher
Mike Gude
Associate Publishers
David DePaul
Bruce Webster
Matt O'Shea
Account Executive
Tom Huppe
Director of Audience Development
Michael Barbee
Audience Development Analyst
Dustin Pickman
Audience Database Specialist
Jonathan Hawley
Audience Development Coordinator
Lauren Juliana
Director of Digital Media
Jon Hall
Digital Advertising Manager
Carrie Fluegge
Advertising Manager
Nora Wages
Advertising Coordinator
Annie Fournier
Design Services Manager
Elisabeth Spillman
Production Specialist
Marj Potts
Senior Design Consultant
Becky White
Promotions Manager
Jim White
Promotions Media Designer
Abby Chronister
Sales Coordinator
Whitney Hartman
CORPORATE
Chairman and CEO
Charles S. Sosland
President
L. Joshua Sosland
Chief Financial and
Administrative Officer
Staci Greco
Chief Operating Officer
and Executive Editor
Meyer Sosland
Chief Marketing Officer
Jim Saladin
THE FOOD DELIVERY SERVICE DOORDASH
made a splash in late 2019 with the introduction
of its first ghost kitchen in Redwood City,
Calif. Nearly two years and one pandemic later,
restaurant industry investment in off-premises
concepts is accelerating and will create new opportunities
and pressures for food and beverage
product developers.
Research published by the National
Restaurant Association (NRA) in 2019 found
off-premises dining accounted for 60% of foodservice
occasions, and nearly 80% of restaurant
operators said developing an off-premises strategy
was a priority. Then the COVID-19 pandemic
hit, and what was a strategic priority became
a necessity. Today, many operators are investing
more resources in takeout/delivery capabilities
than sit-down concepts.
Foodservice operators are taking notice.
On Aug. 11, The Wendy's Co. announced plans
to open and operate 700 delivery kitchens over
the next five years in the United States, Canada
and the United Kingdom. Fifty kitchens are expected
to be open this year, and the remainder
will be open by 2025.
" This commitment builds on the successful
test that we completed in Canada and will allow
us to further develop urban markets where
we are currently underpenetrated, " Todd Allan
Penegor, president and chief executive officer
of The Wendy's Co., said during an Aug. 11 conference
call to discuss second-quarter results.
" We are still very early in our nontraditional
development journey, but we are encouraged by
the results that we've seen ... "
The Wendy's Co. expects the new kitchens
to generate between $500,000 and $1 million in
annual sales per unit.
Red Robin Gourmet Burgers and Brews,
Inc. launched three virtual brands this past
March. The Wing Dept offers wings and sides;
the Fresh Set menu features salads, wraps and
sandwiches; and Chicken Sammy's offers chicken-based
sandwiches, tenders and sides.
" While still early, we are excited about the
performance to date, " said Paul J. B. Murphy, president
and CEO, during an Aug. 18 call to discuss
second-quarter results. " So far, the data indicates
approximately 70% of our virtual brand guests
have never ordered online from Red Robin before,
demonstrating that we are reaching and activating
an entirely new audience through this channel. "
As some foodservice operators develop
robust virtual, off-premises-centric strategies,
food and beverage product developers also
As operators develop
robust virtual, offpremises
strategies,
product developers also
will have to adapt.
will have to adapt. Formulations capable of
withstanding the rigors of takeout or delivery,
for example, will be a priority.
Speed also will be critical. Virtual concepts
allow operators to more quickly adjust or completely
change menus to meet the needs of local
consumers. Menu developers must be able to
keep pace with such change and, in some cases,
create the concepts that will drive change.
The NRA called 2020 a year unlike any
other, and in 2021 foodservice trends are improving.
In July, restaurant sales stood at $72.2
billion on a seasonally adjusted basis, according
to data from the US Census Bureau. Of greater
importance is July 2021 sales were 9.1% higher
than February 2020 pre-pandemic sales. It appears
the worst is behind
the industry, but what lies
ahead may be distinctly
different, and product
developers must prepare
to embrace the changes
ahead. FBN
Keith Nunes
knunes@sosland.com
Virtual kitchens, brands trending
as off-premises dining surges
We're eager to receive your feedback:
Email editor@sosland.com or write to us at:
Food Business News, 4801 Main Street, Suite 650, Kansas City, Mo, 64112
August 31, 2021
Food Business News
7

Food Business News - August 31, 2021

Table of Contents for the Digital Edition of Food Business News - August 31, 2021

Food Business News - August 31, 2021 - Intro
Food Business News - August 31, 2021 - 1
Food Business News - August 31, 2021 - 2
Food Business News - August 31, 2021 - 3
Food Business News - August 31, 2021 - 4
Food Business News - August 31, 2021 - 5
Food Business News - August 31, 2021 - 6
Food Business News - August 31, 2021 - 7
Food Business News - August 31, 2021 - 8
Food Business News - August 31, 2021 - 9
Food Business News - August 31, 2021 - 10
Food Business News - August 31, 2021 - 11
Food Business News - August 31, 2021 - 12
Food Business News - August 31, 2021 - 13
Food Business News - August 31, 2021 - 14
Food Business News - August 31, 2021 - 15
Food Business News - August 31, 2021 - 16
Food Business News - August 31, 2021 - 17
Food Business News - August 31, 2021 - 18
Food Business News - August 31, 2021 - 19
Food Business News - August 31, 2021 - 20
Food Business News - August 31, 2021 - 21
Food Business News - August 31, 2021 - 22
Food Business News - August 31, 2021 - 23
Food Business News - August 31, 2021 - 24
Food Business News - August 31, 2021 - 25
Food Business News - August 31, 2021 - 26
Food Business News - August 31, 2021 - 27
Food Business News - August 31, 2021 - 28
Food Business News - August 31, 2021 - 29
Food Business News - August 31, 2021 - 30
Food Business News - August 31, 2021 - 31
Food Business News - August 31, 2021 - 32
Food Business News - August 31, 2021 - 33
Food Business News - August 31, 2021 - 34
Food Business News - August 31, 2021 - 35
Food Business News - August 31, 2021 - 36
Food Business News - August 31, 2021 - 37
Food Business News - August 31, 2021 - 38
Food Business News - August 31, 2021 - 39
Food Business News - August 31, 2021 - 40
Food Business News - August 31, 2021 - 41
Food Business News - August 31, 2021 - 42
Food Business News - August 31, 2021 - 43
Food Business News - August 31, 2021 - 44
Food Business News - August 31, 2021 - 45
Food Business News - August 31, 2021 - 46
Food Business News - August 31, 2021 - 47
Food Business News - August 31, 2021 - 48
Food Business News - August 31, 2021 - 49
Food Business News - August 31, 2021 - 50
Food Business News - August 31, 2021 - 51
Food Business News - August 31, 2021 - 52
Food Business News - August 31, 2021 - 53
Food Business News - August 31, 2021 - 54
Food Business News - August 31, 2021 - 55
Food Business News - August 31, 2021 - 56
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