The term innovation gets tossed around the foodservice industry.
One company might try to position a new website as innovative, while another may view offering a wellness center as being innovative. Depending on the features of the website and the needs of the employees, both companies may be right. And, of course, they both may be wrong. That’s because whether something is innovative tends to really be in the eye of the beholder. From my perspective, what truly makes something innovative is whether it solves a problem or adds value in truly impactful way.
Virtual brands represent one such prominent example in today’s foodservice industry. The concept of virtual brands is not a new one. For many years, operators sought to generate more revenue from their existing kitchens and even get closer to their customers. Virtual brands address both of these priorities by allowing operators to create new concepts that leverage their existing infrastructure. Pair that with the fact that customers still like the convenience of ordering food from their handheld devices and having it delivered to them, and you have a concept with staying power.
Developing a virtual brand is one thing, but successfully implementing it is another. The former requires vision and a keen understanding of the virtual brand’s value proposition, its place in any given geographic market and more. Successful implementation requires careful thought and consideration to ensure food flows out the door in a manner that’s so effective and efficient that it does not compromise consumers’ perception of quality or convenience. And in the case of a virtual brand, which operates from an existing restaurant, the goal is to not compromise the on-premises dining experiences of other guests. In other words, successful implementation of a virtual brand does not happen by accident, and it starts with a well-designed back of the house and a well-designed kitchen.
Despite the considerable labor challenges operators continue to face, they show no signs of wavering when it comes to cooking from scratch (page 36). The idea of preparing fresh ingredients almost seems like table stakes for just about every foodservice industry segment. And with labor so scarce and customer expectations higher than ever, having a well-thought-out kitchen has never been more important for both virtual and traditional brands.
Because virtual brands typically share kitchen space with other concepts, the menus as well as the approach to cooking must complement one another. The more the operator can cross-utilize what’s already there, including ingredients and equipment, the better. This applies to the front-of-the-house space and any customer-facing areas.
If the back of the house hums along but is out of sync with the front of the house, then the brand may suffer. This is where properly designed and placed pickup areas (page 64) come into play. Operators have to place these spaces in such a way that they are convenient for customers and delivery drivers as well as staff. Anything less can compromise the operation’s overall effectiveness and efficiency.
The goal, after all, is to drive revenues and enhance unit economics, regardless of whether it’s a traditional or virtual brand. And that can only happen by design.