E GRIL For Americans Demanding Healthier Fast Food Options: The Evolving Restaurant Landscape Amid The COVID-19 Pandemic

In Chicago, one CEO, Mike Roper of Muscle Maker Grill has announced his company will be expanding during this chaotic pandemic time with their “ghost kitchen” concept. The new Meal Plan concept will allow guests to place their orders through third-party delivery platforms providing ease of ordering and the option for contactless delivery. Ordering platforms include DoorDash, GrubHub (NYSE: GRUB), UberEats (NYSE: UBER), Postmates, ChowNow, and Caviar. As the demand for delivery increases due to social distancing, many restaurant concepts are looking toward ghost kitchens to expand quickly while meeting the growing need for fast options.

“Low build out costs, reduced overhead and waste, and the ability to expand quickly are what make delivery-only ghost kitchens attractive to restaurant brands.” - Mike Roper, MMG CEO

With less overhead due to reduced staff (no need for waiters, waitresses, hostesses, and busboys) and the additional square footage costs for a dining area, not only can one control costs but also implement up to 6 business concepts out of 1 kitchen. Muscle Maker Grill will use 3, Meals to Go, Healthy Joe’s, and Muscle Maker Grill as 80-90% of the ingredients used overlap allowing for even more concept efficiency.
 


The Rise of Food Delivery Options to Your Doorstep

The food delivery sector saw a giant boost thanks to the pandemic lockdowns. Ridesharing, such as Lyft (Nasdaq: LYFT) and Uber had already grown to a norm among the younger generation with Uber expanding its business model and launching UberEats a year or so ago. The rideshare economy has created many income opportunities for unemployed or underemployed individuals and for Uber to expand into food delivery only solidified the ability for a driver to have more delivery options.

DoorDash surpassed Grubhub as the top food delivery platform in the U.S. last year. It controlled 38% of the market in January, according to Second Measure, while GrubHub and UberEats held 31% and 20% shares, respectively.

View single page >> |

Disclosure: I don't currently hold a position in any of these stock although I plan on acquiring GRIL.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Moon Kil Woong 8 months ago Author's comment

Muscle Maker Grill certainly seems like it past the hump. It has opened new restaurants and the fearmongering has subsided. Hopefully, some will open closer to me soon.

Carl Schwartz 8 months ago Member's comment

How to know where they'll be opening?

Moon Kil Woong 7 months ago Author's comment

They already announced store openings. That's partially why the stock has rebounded.

Carl Schwartz 7 months ago Member's comment

During a pandemic?? Seems like an odd time to expand.

Moon Kil Woong 7 months ago Author's comment

They cut back a few underperforming branches which scared some investors and opened some on military bases and other locations. The article covers their model movement towards kitchen/restaurantless only locations.

Barry Glassman 10 months ago Member's comment

Sounds like $GRIL is a stock worth a closer look.

Bill Johnson 10 months ago Member's comment

You have some excellent articles!

Moon Kil Woong 10 months ago Author's comment

Thanks.