Operations

Kroger takes the ghost kitchen plunge

The grocery giant, through a partnership with delivery-only startup ClusterTruck, is opening two ghost kitchens in Indiana and Ohio.
Kroger Ghost kitchen

Grocery giant The Kroger Co. is getting in on one of the restaurant industry’s hottest trends: Ghost kitchens.

The retailer on Thursday announced a partnership with delivery-only kitchen startup ClusterTruck to open ghost kitchens at stores near Indianapolis and Columbus, Ohio. The location in Fishers, Ind., is currently open, with plans to open one in Dublin, Ohio, later this year.

Kroger is repurposing about 1,000 square feet of space at its participating stores to make room for the ghost kitchen prep and pickup areas, the chain said in a statement. The ClusterTruck kitchens offer a menu of more than 80 delivery and takeout meals “best characterized as food quality you can get at a sit-down restaurant with the personality of street food,” Kroger said in a statement.

"The new on-premise kitchen, in partnership with ClusterTruck, is an innovation that streamlines ordering, preparation and delivery, supporting Kroger as we meet the sustained customer demand for quick, fresh restaurant-quality meals, especially as we navigate an unprecedented health crisis that has affected every aspect of our lives, including mealtime,” Dan De La Rosa, Kroger’s group vice president of fresh merchandising, said in the news release.

Kroger reports it has seen a 127% increase in digital sales in Q2 as consumers gravitate towards digital ordering, pickup and delivery.

Indianapolis-based ClusterTruck got into the ghost kitchen space early, launching in 2015 as a “virtual food truck” concept. The company created a proprietary software system to boost operational efficiency, with average orders delivered to the customer within seven minutes of preparation and about 30 minutes after ordering, according to Kroger.

Kroger launched a pilot program with ClusterTruck late last year.

The ghost kitchen launch is far from Kroger’s first step into the restaurant space. The supermarket chain operates three full-service Kroger 1883 restaurants in the Cincinnati market and opened a food hall there, On the Rhine Eatery, last fall.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

More from our partners