Toronto-based Ghost Kitchen Brands (GKB), launched in 2016 by entrepreneur George Kottas, has evolved from a classic ghost kitchen selling its own brands from over 20 delivery-only facilities in Canada into virtual food courts selling multiple national and international restaurant brands from ghost kitchens placed in high-traffic, high-visibility locations in Canada and the U.S. The company’s president, Marc Choy, a former Quiznos executive, fills us in.
Q: What shifts has Ghost Kitchen Brands made to enhance its position?
A: We went from operating for delivery only in bad locations with cheap rents to taking high-visibility, customer-facing locations that serve delivery and walk-in customers. We also now partner with well-known, established brands that have great equity in the market but may not have distribution in certain areas. Unlike some ghost kitchens that lease space, we own and operate our brands and each of our kitchens can produce 15 to 25 different brands. A big pivot has also been to not just do third-party delivery but to seek out locations wherever our customers are, whether at work, shopping or traveling, both for delivery and for in-person convenience.
A partnership with Walmart is taking Ghost Kitchen Brands’ virtual food-hall-style model directly into stores in Canada and the U.S
Q: What’s the relationship between GKB and the brands it serves?
A: In some cases we’re a licensee, in others we’re a franchisee. In all cases we have the rights of each of the brands to execute their menus. We use the same supply chain, ingredients, training, recipes and marketing as the brick-and-mortar stores, but we’re doing it in conjunction with a number of other brands.
Q: You created buzz earlier this year by partnering with Walmart. What’s the strategy there?
A: Historically, 7 p.m. to 1 a.m. is our busiest time for delivery. We can still do that delivery business from a Walmart kitchen, but now we have the added benefit of providing convenient meal solutions to shoppers, employees and other consumers nearby throughout the day. Walmarts also have big parking lots and are easily accessible to delivery drivers.
Ghost Kitchen Brands’ Walmart locations include lobbies outfitted with giant iPad-style kiosks on which customers can peruse menus, watch videos and order from.
Q: What does a typical Walmart store kitchen look like?
A: Our kitchens are around 2,000 square feet, with a common prep area equipped for things like cutting vegetables, slicing meats and cheeses, etc. Equipment is shared, as are cold and dry storage, freezer space, dishwashing, vegetable sink, etc. Once you strip all that away, each brand really only needs a small station for assembly and finishing. The kitchens are closed, so we’re not worried about brand aesthetics or how things are displayed. We’re only worried about whether we can execute the brands properly and efficiently. We work with each of our brands to come up with specific equipment that meets their needs and ours. As we continue to grow, we want to make our facilities as scalable as possible, with standard layouts and equipment packages.
