Sunday, February 2, 2020

Virtual Restaurants Can Drive Chain Growth with Profitability

The chain restaurant business model is evolving.  Last week we saw two legacy restaurant chains that practice brand protectionism file for bankruptcy, The Halal Guy’s has developed a plan for profitability leveraging technology, food marketing, and operational efficiencies that most legacy chains have not according to Steven Johnson, Grocerant Guru® at Tacoma, WA based Foodservice Solutions®.
The Halal Guys currently operates four carts and 95 restaurants, with 400 more locations in the pipeline. Here is what is important they are expanding their portfolio of delivery-only virtual /restaurants /kitchens to meet growing customer demand and enhance its delivery, pickup and group ordering options.
The model explained; The Halal Guys identified cloud kitchens as a cost-effective way for its franchisees to capitalize on the growing trend of online food delivery, a category expected to exceed $200 billion by 2025. Working closely with its franchise management partner Fransmart, The Halal Guys is continuously evaluating territories to determine locations where a cloud kitchen could be successful.
Dan Rowe, CEO of Fransmart stated “The Halal Guys has an incredible reputation, and its franchisees are always eager to expand into new markets,”… “But no two territories are exactly the same, and it’s important to grow in a way that’s strategic and profitable. The small footprint and flexibility of cloud kitchens enables franchisees to unlock opportunities in desirable markets, while avoiding typical barriers like high rent or infrastructure costs.”
The Halal Guys has partnered with Fransmart, as their exclusive franchise development partner to grow the brand.  Who are you partnering with?  Is that partnership driving new electricity into you brand? 
Johnson stated “that in my minds-eye the new electricity must be very efficient for the supply chain and includes such things as fresh foods, Online ordering, delivery, plant based foods,  sampling, toy’s, beer, developing brands, unique urban clothing, grocerant positioning, fresh food messaging, autonomous delivery, cashier-less retail, plates, glasses, cash-less payments, digital hand-held marketing.
All food and beverage retailers to survive the next generation of retail must embrace the artificial intelligence revolution while simultaneously embracing fresh food and beverages that are portable, fresh, with differentiation that is familiar not different.  Does your retail path forward look more like yesterday than tomorrow?   
Are you looking for a new partnership to drive sales? Are you ready for some fresh ideations? Do your food marketing tactics look more like yesterday that tomorrow?  Visit for more information or contact: Remember success does leave clues and we just may have the clue you need to propel your continued success.

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