No matter what industry you operate in, many longstanding brands and stores have had a hard time keeping pace with changing customer preferences and needs. This has led to many stores trying to reinvent themselves and make any changes that they deem necessary to stay profitable.
Red Lobster is doing just that and going above and beyond in an effort to keep their doors from closing for good. Red Lobster has announced that they'll be trying out a “ghost kitchen”, one where the restaurant prepares the food for delivery but doesn't have a physical dining area where customers can eat. This will be done in effort to reduce overhead costs and get them out of the red financially.
Red Lobster has more than 700 locations and CEO Kim Lopdrup thinks the "ghost kitchen" it is a great avenue for them to pursue since food delivery apps have become more and more popular in recent years and people have shown a preference for having food delivered conveniently to their homes over going out to dine. “It provides an efficient way to get closer to consumers who do not happen to be located near our existing restaurants,” Lopdrup said in an interview.
The ghost kitchen idea is becoming more popular in Florida where Red Lobster is headquartered but took but really got its start in California where Kitchen United is credited with starting this trend in 2017. Ghost Kitchens tend to do best in geographic locations where rents are affordable to retailers and conveniently close to the potential consumers.
Credit: Red Lobster
The last few years have been tough for restaurants and 2020 is not expected to be any better. Lopdrup believes that with the right mindset and innovative business planning, the winners in this tough economic game will be the ones that see these issues as opportunities as opposed to problems. Lopdrup also boasted in an interview that they were able to triple their off-premise business giving even more hope to the idea of the "ghost kitchen."
Red Lobster is currently available for at home delivery by using Uber Eats as well as DoorDash. For those who don't mind driving to pick up their food or want to do it on the way home, they also offer a convenient curbside pickup at the majority of their chains.
