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Wendy’s announced this week that it is planning to set up at least 700 ghost kitchens in the United States, the U.K., and Canada by 2025. The fast-food chain revealed that it will be carrying out this project in partnership with Reef Technology, a start-up company.
According to CNBC, Wendy’s decided to put up ghost kitchens to address the customers’ demand. The kitchens will fulfill delivery orders of Wendy’s meals that are placed via DoorDash or other third-party delivery services.
Reef Technology stated that its services help restaurants save on costs since there is less labor requirement and there is no need to provide parking lots too. It was mentioned that Wendy’s and Reef already partnered in the past and created eight ghost kitchens in Canada.
Apparently, the project yielded good results, so the plan to put up more ghost kitchens was developed. For this year alone, the burger joint is planning to open at least 50 ghost kitchens.
In any case, it was said that Wendy’s has lower expected sales for the ghost kitchen locations, but despite this, it is still looking forward to a solid ROI or return on its investment. The ghost kitchens will also allow the fast food to expand its reach in urban locations. Based on the deal, Reef will be handling the buying of kitchens and hiring of employees.
"The demand for convenient delivery solutions means we must look for opportunities beyond our traditional restaurant formats, especially in dense urban areas," Wendy’s president, International, and Chief Development Office, Abigail Pringle, said in a press release via Yahoo Finance. "This partnership with REEF is testimony to our ambitions, the potential we see to grow our beloved brand, and our quest to reach more customers in more ways."
Michael Beacham, president of REEF Kitchens, also said that they are proud to be working with Wendy's. "Wendy's is an incredible brand and we look forward to being a part of their continued success in the future," he said.
Meanwhile, Wendy’s plans to put up hundreds of ghost kitchens have a $100 million development fund, as per Restaurant Business Online. The project is part of the company’s ambitious global development plan.
