The food delivery app economy has led to a strange new form of restaurant: delivery-only chains. Listen to the fourth and final episode of Land of the Giants: Delivery Wars to find out how they are shaking up the food delivery landscape.
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Over the past year, Guy Fieri, George Lopez, Mariah Carey, Pauly D, Mario Lopez, and Youtube star MrBeast opened hundreds of restaurant businesses simultaneously. Leaning into the popularity of delivery apps and the excess capacity of restaurant kitchens around the country, they all launched virtual brands — delivery-only chains that local restaurants sign up to distribute.
Celeb-backed chains garner a lot of attention, but virtual chains are everywhere. National restaurant chains — Chili’s, Chuck E. Cheese, Applebee’s, for example — have their own. So do much smaller restaurant groups. Mom and pops around America are signing up as distribution points but also creating spinoff concepts of their own.
Meanwhile, restaurants continue to experiment with ghost kitchens — off-premise production spaces with no visible storefront designed to streamline a restaurant’s delivery business. These new models could provide new revenue opportunities for struggling restaurateurs. But what does it mean for consumers who are increasingly disconnected from where their food is coming from? And what does it mean for workers making five menus out of the same kitchen?miniseries, to hear about the growth of virtual brands and ghost kitchens and how investors, restaurant owners, and the apps themselves are getting involved and what these new versions of “restaurants” mean for consumers.
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