- Dickey’s Barbecue Pit will open its first host kitchen location with Franklin Junction later in October, the companies announced Wednesday.
- The chain goals to open 25 host kitchen areas by the tip of the yr.
- Dickey’s has been ramping up its delivery-only choices of late, partnering with Combo Kitchen this summer season to open not less than 100 ghost kitchen areas within the subsequent yr.
Dickey’s has grown over the previous two years by means of digital gross sales, in response to the press launch, and the corporate hopes Franklin Junction will “speed up [its] presence in untapped markets.”
“Franklin Junction’s choices present our model with the power to extend our income inside our present working methods whereas additionally bringing us to market shortly,” Dickey’s CEO Roland Dickey Jr. stated within the launch.
Franklin Junction, which owns the trademark to the time period host kitchen, has labored with different main manufacturers as effectively, including Nathan’s Famous. The partnerships have helped these eating places broaden quickly. The recent canine chain, as an example, linked up with the host kitchen platform in April 2020 and later Reef Technoloy, and by February had opened its one hundredth ghost kitchen. In April 2020, Franklin Junction said it had 550 host facilities on its platform and deliberate for one more 1,000 by the tip of that yr. Different companions embody Nathan’s Well-known’ model Arthur Treacher’s, Frisch’s Restaurants and Wing Depo, which signed on in December.
Franklin Junction CEO Rishi Nigam stated within the launch that Dickey’s robust model popularity and its embrace of “the ability of e-commerce” make it match for Franklin Junction’s enterprise. Along with its take care of Combo Kitchen, Dickey’s launched two digital manufacturers, Wing Boss and Massive Deal Burger, this yr, seeing fast progress. The 2 manufacturers increased the number of locations they operated out of by 24% in Q2, with month-to-month gross sales growing 315% from March to June.
Utilizing a number kitchen mannequin is prone to solely additional gasoline Dickey’s growth. Host kitchens can provide restaurant chains a profitable second revenue stream as demand for off-premise eating choices maintain regular. These ideas give eating places with extra kitchen and storage capability a chance to broaden gross sales by internet hosting different restaurant manufacturers. Although these manufacturers are normally restricted to off-premise and on-line orders, Ruby Tuesday, which can be backed by Franklin Junction father or mother NRD Capital, serves food from its virtual brand Libby’s BBQ in-store at its eating places.
For Nigam, the expansion of host kitchens is barely starting. In a earlier interview, he advised Restaurant Dive, “I’d say by 2025 larger than 50% of eating places on this nation might be promoting a number of manufacturers. By the tip of the last decade it will be 90%.”