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MenuPepsiCo wants to help restaurants start ghost kitchens

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Technology


PEPSICO WANTS TO HELP RESTAURANTS START GHOST KITCHENS



The food giant will offer free advice on the off-premise business, drawing on
lessons learned from its own delivery-only concept, Pep’s Place. By Joe
Guszkowski on Nov. 16, 2022
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Pep's Place gave PepsiCo first-hand experience with virtual brands. / Photograph
courtesy of PepsiCo


Food giant PepsiCo raised some eyebrows last year when it announced it was
starting a virtual restaurant.

The one-month popup Pep’s Place, launched in partnership with Famous Dave’s, had
a beverage-first menu that paired Pepsi drinks with food items.

The move seemed curious at the time. But its purpose became more clear
Wednesday, when PepsiCo said it would start advising restaurants on how to start
their own ghost kitchens and virtual brands.



The new service is part of PepsiCo Foodservice Digital Lab, a consultancy
created in 2019 to assist restaurants on all things digital as that side of the
business became more prominent. 

It’s now expanding Digital Lab to include help with delivery-only formats like
ghost kitchens and virtual brands. Demand for those options continues to grow
among restaurants, though they don’t always know the best place to start, said
André Moraes, senior director of marketing at PepsiCo Foodservice.

“We’ve absolutely been hearing about ghost kitchens and virtual brands from many
customers,” he said. “There’s demand for how to execute these properly.”

PepsiCo can advise restaurants on things like starting their own virtual brand,
bringing an outside brand into their kitchen or outsourcing their concept to
other restaurants, Moraes said.

It will lend its considerable marketing expertise to the effort as well as
guidance on technology and menu. It can also draw from its first-hand experience
with Pep’s Place.

Moraes said the project underscored the importance of discoverability and order
flow for an online-only brand.

“Understanding how guests will find you and how to make your brand and concept
approachable to them is very important,” Moraes said.

He also emphasized training and quality control, from the food all the way down
to the packaging. 

PepsiCo will help restaurants with all of this, free of charge.

“What’s really important to us is that we’re being more than a beverage, snacks
and food partner but being a go-to partner when it comes to opportunity like
this,” Moraes said. 

Despite inflation and a return to more normal dining habits, demand for
restaurant delivery remains surprisingly strong. That continues to fuel interest
in ghost kitchens and virtual brands as restaurants look to leverage fixed costs
and generate more revenue. 

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