Supermarket Gets into Ghost Kitchen Game
The Kroger Co. is getting into the ghost kitchen business. The Cincinnati-based grocer teamed up with ClusterTruck to launch Kroger Delivery Kitchen that will deliver fresh meals without fees.
Store Brands, a sister publication of Hospitality Technology, first reported this story.
Kroger Delivery Kitchen powered by ClusterTruck, a software platform that powers vertically integrated delivery-only kitchens, will launch initially in Carmel, Ind. – where Kroger and ClusterTruck are jointly opening a fourth kitchen – as well as Indianapolis and Columbus, Ohio. Additionally, King Soopers Delivery Kitchen Powered by ClusterTruck will serve customers in Denver. King Soopers is a Kroger banner based in Denver.
"The way our customers order and receive meals is evolving, and ClusterTruck's innovative culinary and digital design is cracking the code for the future of profitable meal delivery," said Yael Cosset, Kroger's chief information officer. "Kroger is leveraging ClusterTruck's advanced technology to ensure our customers don't have to sacrifice quality and value for convenience when it comes to meal delivery. Kroger Delivery Kitchen powered by ClusterTruck will allow our customers to access restaurant-quality fresh and delicious meals like never before and without having to pay excessive service or delivery fees."
According to HT's 2019 Customer Engagement Technology Study, restaurant delivery is rising in popularity to meet growing demand from consumers who are short on time and are looking for the ultimate in convenience. To serve this growing market need, restaurants are turning to a number of technologies; 29% of restaurants surveyed are including integration with third-party delivery systems (such as Uber Eats, Grubhub, and DoorDash), according to the report.
In related news, Kroger is among the retailers entering restaurant scene as a way to drive traffic and loyalty to its brick and mortar stores. In October, it opened its third restaurant in Union, Ky., under the 1883 banner.