Wendy's and startup Reef Technology to open 700 delivery kitchens by 2025
Source Wendy's Restaurants of Canada
Fast-food leader Wendy's Co. and ghost kitchen operator Reef Technology this week announced their intention to open and operate 700 delivery kitchens, or ghost kitchens, over the next five years in the U.S., Canada and UK.
The commitment builds on the "successful" test of eight delivery kitchens in Canada that started in late 2020. As part of the plan, Reef will become the first Wendy's franchisee in the United Kingdom.
The two companies said they expect to open about 50 delivery kitchens in 2021, with the remainder launched by 2025.
"The demand for convenient delivery solutions means we must look for opportunities beyond our traditional restaurant formats, especially in dense urban areas," said Abigail Pringle, Wendy's president of international and chief development officer.
Enabling restaurants to reduce overhead, ghost kitchens place their orders through third-party delivery apps like GrubHub, Uber Eats and DoorDash, among others.
Wendy’s chief executive Todd Penegor told CNBC that company is forecasting annual average sales of $500,000 to $1 million for a Reef ghost kitchen. In 2020. the average gross annual sales for a U.S.-based Wendy’s restaurant franchise was $1.75 million, CNBC noted.
Reef Kitchens are located in more than 30 cities around the world. They are designed to help reduce traffic congestion and pollution by bringing food closer to the customer.
