Chick-fil-A is gearing up to launch a chicken wing restaurant this year, a new trademark application suggests

  • Chick-fil-A is planning a new delivery restaurant concept for Nashville and Atlanta.
  • Little Blue Menu will serve normal Chick-fil-A fare plus wings and other additions, like wings.
  • Applebees, Cracker Barrel, and others have opened delivery concept restaurants recently.
  • See more stories on Insider’s business page.

Chick-fil-A has filed to trademark the name “Outfox Wings” ahead of a new restaurant concept slated to open later this year.

The chicken chain submitted a trademark application to US regulators on May 4, documents show. The logo “consists of the word OUTFOX over the word WINGS with the image of a fox’s face with its tail covering its mouth inside the middle of the first O in OUTFOX,” the filing says.

Chick-fil-A Outfox Wings trademark

Chick-fil-A has no plans to serve wings at already-existing restaurants, a spokesperson said, noting that the company is “exploring a new delivery kitchen concept to pilot later this year.”

The new concept is called Little Blue Menu and will launch in Nashville in late 2021 and Atlanta in 2022, the company announced Wednesday. It will serve “both the classic menu plus a variety of different cuisines – think salads, roasted chicken, wings and more – all made under one roof, arriving in one bundled order.”

In other words, some southern Chick-fil-A fans will be able to order their favorite spicy chicken sandwiches and fries along with Chick-fil-A’s first-ever wings.

Read more: Why big chains like Outback, Applebee’s, Cracker Barrel, and Chili’s are flooding delivery apps with virtual restaurant brands, even as hefty fees from Uber Eats cut into profits

The chain says the name is a reference to Chick-fil-A founder S. Truett Cathy’s original blue menus.

Other restaurant chains have also experimented with delivery concepts over the last year. Applebees launched Cosmic Wings, a delivery-only virtual brand with Cheetos-flavored wings. Outback Steakhouse parent company Bloomin’ Brands launched Tender Shack, a virtual chicken tender restaurant, and Cracker Barrel debuted a delivery chicken and biscuits concept in Indianapolis. “Outfox Wings,” could follow suit as a separate virtual restaurant.

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How ghost kitchens’ business models could threaten the future of traditional dine-in restaurants

Pasta Cooking in Industrial Kitchen.
Dark kitchens were already gaining popularity before the pandemic.

  • Dark kitchens are gaining popularity, enabling restaurants to cut costs during the pandemic. 
  • Spanish broadcaster RTVE estimated 25% of home food deliveries now came from dark kitchens. 
  • If the trend continues, traditional dining establishments will likely find it difficult to recover.
  • Visit the Business section of Insider for more stories.

The COVID-19 pandemic has changed the food industry forever and brought new trends with it.

Among them are “dark kitchens” or “ghost kitchens.”

Dark kitchens consist of premises where food is prepared for home delivery or collection but do not have a dining area or waiters.

The business’s customer service and dining area rental aspects are removed, cutting costs and enabling a direct relationship with consumers.

The concept was already gaining popularity before the pandemic, taking over fast-food chains and supermarkets.

Many restaurants also share premises and facilities to cut costs even further.

Over the last year, dark kitchens have grown exponentially in popularity.

Grocery giant Kroger announced in October that it was opening more dark kitchens to meet surging delivery demand, and Chipotle outlined plans to open its first dark kitchen in November, although the chain has been using digital kitchens within its restaurants for some time.

In many ways, dark kitchens have been the saving grace of the pandemic, allowing restaurants to continue operating despite restrictions that ban diners from visiting their establishments.

25% of food deliveries during the pandemic come from dark kitchens, according to Spanish broadcaster RTVE.

It’s not just restaurants that are catching on – it’s delivery giants too.

Food delivery firm Deliveroo, now worth $7 billion, said it would spend its latest funding win of $180 million partly on investing in dark kitchens.

This will enable them to increase their profit margins hugely as they will no longer be dependent on delivery commissions from restaurants.

However, there are concerns that dark kitchens could threaten traditional dining establishments, as they cannot compete with the larger profit margins, quicker deliveries, and lower prices offered by dark kitchen restaurants.

If they do not return in numbers equivalent to pre-pandemic levels, it will be difficult for restaurants to recover from the losses incurred over lockdowns and closures will be inevitable.

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We mapped out the locations of ghost kitchens run by ex-Uber CEO Travis Kalanick’s CloudKitchen and competitor REEF Technology. See where the fight for ghost kitchen dominance is heating up.

Aerial sunny parking lot warehouse
Ghost kitchen startups are scooping up empty warehouses and parking lots around the US.

  • Matt Newberg is the founder of HNGRY, a subscription media platform exploring the overlap of food and technology through trends like ghost kitchens, dark stores, and more.
  • Newberg writes that up-and-coming ghost kitchen startup CloudKitchens is spending spends hundreds of millions of dollars converting old industrial warehouses around the US into dozens of individual kitchen spaces. 
  • REEF Technology is another ghost kitchen startup that operates delivery-only restaurant kitchen trailers and deploys them in parking lots across the country.
  • “CloudKitchens is more like an Amazon fulfillment center, while REEF is more like a 7-Eleven,” explains Newberg. This difference allows REEF to access more locations by volume but gives CloudKitchen has an advantage in overall scale.
  • Visit Business Insider’s homepage for more stories.

Over the past three years, Travis Kalanick, the ousted founder CEO of Uber, has been quietly purchasing real estate in major cities across the country while simultaneously investing in ghost kitchen business internationally for his ghost kitchen startup, CloudKitchens.

While CloudKitchens got an early start, in 2019 a startup called ParkJockey announced that it had raised money from the sovereign wealth fund of Dubai and Softbank to roll up the two largest parking operators in North America. This built the platform for what has been rebranded as REEF Technology, a startup that operates delivery-only kitchen trailers and other micro mobility applications on top of under-utilized parking spaces. 

Read more3 restaurant brands with ghost kitchens explain how they’ve kept operations running smoothly while staying competitive on delivery apps

REEF’s core bet is that as we move towards shared autonomous vehicles, the demand for parking will plummet.

With $1 billion in newly raised capital, $300 million of which is dedicated to purchasing real estate, REEF is looking to transform parking lots into what it calls a “proximity platform” that supports the on-demand economy through applications like ghost kitchens, micro-fulfillment, and COVID-19 testing sites. 

According to PitchBook, CloudKitchens has raised $700 million in equity and has a debt facility of $200 million from Goldman Sachs to support its real estate acquisitions and build-outs according to a deed of trust document discovered by HNGRY.

Despite the fact that both companies have raised large sums of capital to repurpose distressed real estate, they are quick to distinguish themselves from one another. CloudKitchens is more like an Amazon fulfillment center, while REEF is more like a 7-Eleven. 

Read more: A San Francisco pizzeria transformed into a ghost kitchen when the pandemic hit. Here’s how they pivoted quickly and boosted sales by more than $1 million in the process.

CloudKitchens spends millions of dollars converting industrial warehouses into 30 to 40 individual kitchen spaces, while REEF purchases and deploys a single kitchen trailer per parking lot that it either owns or manages. 

For example, CloudKitchens owns two properties in Miami: a 58,500-square foot warehouse in Wynwood and a 16,441-square foot former Brazilian restaurant in South Beach. By contrast, REEF has blanketed the city with a dozen trailers across six zip codes, each of which can prepare as many as seven different delivery concepts. While these trailers aren’t as mobile as food trucks, they can be quickly removed or deployed from any permitted site. 

CloudKitchens leases its kitchens to large QSRs like WingStop, Chick-fil-A, and Panda Express while REEF operates delivery-only franchises on behalf of mostly smaller brands like Fuku, Umami Burger, and Wow Bao.

By and large, both teams are focused on the same markets, with a high concentration of overlap in LA, San Francisco, Seattle, Portland, Austin, Houston, and Philadelphia. 

While REEF’s modular form factor lends itself to more locations per city, both companies share a similar number of locations in cities like Chicago and LA. Unlike its stealth rival CloudKitchens, REEF has made noticeable attempts brand its trailers and give them the appearance of a neighborhood-friendly destination – despite the fact that its trailers’ sole purpose is to fulfill delivery orders. 

In some cases, REEF lays out astro turf and picnic benches outside of its trailers as a welcome mat despite the fact that all orders must be placed via a delivery app. 

At the other end of the spectrum, CloudKitchens’ facilities go out of their way to disassociate themselves from their parent company, opting to brand each property as a “Food Center,” “Food Nest,” “Food Hall,” “Food Hub,” or “Food Junction” instead. 

The front-of-house areas are primarily designed as waiting rooms for delivery drivers with waiting benches, order screens, and bathrooms. Interior renderings of newer locations depict food lockers for customers to order ahead and pick up as well as ordering tablets for walk-up orders.

Read more: 6 tips for starting a ghost kitchen from entrepreneurs who’ve successfully launched the delivery-only model

REEF has the ability to deploy a greater number of locations by volume in a shorter time span than CloudKitchens, while CloudKitchen has a distinct advantage in scale.

With their current footprints, CloudKitchens can support nearly 10 times the number of brands in a single location than REEF, because the average Cloud Kitchen facility houses 30 individual kitchens that can list themselves as four different concepts, for a total of 120 brands from one CloudKitchen location. REEF, meanwhile, can host just 7. 

On top of this, CloudKitchens is expanding into CloudRetail to add consumer items like ice cream, alcohol, and everyday household essentials to consumers’ food delivery baskets. 

There are glimpses of the grander ambitions CloudKitchens has, beyond just delivering takeout and groceries: Last April, the company briefly tipped its hand by launching the “Internet Food Court,” a virtual food hall that allowed consumers to order across all of its concepts in a single batched order from its second facility in Koreatown, Los Angeles before being mysteriously deleted from the internet a day later. 

Matt Newberg is the founder of HNGRY, a subscription media platform exploring the cutting edge of food and technology through trends like ghost kitchens, dark stores, fungi-based meat, and personalized nutrition. Subscribe to the free weekly newsletter here or try a premium subscription for $5 with promo code INSIDER5.

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