The Ultimate Guide to Growing Your Food Delivery Business

Home , DoorDash, Food delivery, Ghost kitchen, Meal kit, Plated (meal kits), Postmates

NovemberDECEMBER 2020 2020 Table of Contents

Preparing Your Restaurant For Delivery 1 Logistics 3 Restaurant Technology 7 Using QR Codes 11 Delivery Apps 15 DIYing Delivery 18 Top Delivery Apps 19 In Their Own Words 21 Avoiding Traffic Jams 25

The Food 28 Crafting a Delivery Menu 29 Troubleshooting 31 Food Costs 32 Increasing Your Margins 33 Creative Menu Ideas 35 Packaging 37 Food Photography 45

Delivery-Only Kitchens 51 Introduction 53 Cost Comparison 55 Different Kitchen Models 57 The NBRHD Kitchens Model 59 Success Story 61

References 63 Preparing Your Restaurant For Delivery 2 PREPARING YOUR RESTAURANT FOR DELIVERY Logistics

Your restaurant’s success pivots on a series of complex systems operating without a hitch. Adding delivery to this delicate mix calls for thoughtful planning. Everything from rethinking your kitchen and dining room layout to streamlining your menu is on the table.

It’s a big ask, we know. But by tackling the logistical challenges of delivery from the start, you’ll save yourself considerable time—and money—later. Even so, don’t bolt anything to the floor until you’re sure it will work for the long-term.

ASSESSING YOUR SPACE

There are two key spatial concerns to address when offering take-out and delivery:

1 Storage for packaging

Buying delivery packaging in large quantities can mean considerable savings—but you’ll need somewhere to store it all. Consider repurposing dining room space into storage space. Alternatively, store packaging off-site where rent is more affordable—like a storage facility.

2 Order-staging area

Create a convenient, temperature-controlled area for orders awaiting pickup. Ensure it’s easy for your staff to match each order (and all its parts) to the customer or delivery driver picking it up. 4 PREPARING YOUR RESTAURANT FOR DELIVERY Logistical Logjam

Precisely how you’ll tackle the logistics of preparing your restaurant for delivery will vary with the opportunities and limitations of your site and concept, not to mention your firepower and refrigeration capacity, the size and complexity of your delivery menu, and whether you’re serving customers on-premises.

Test out a few configurations when reconfiguring your space to see what works best. Here are some key considerations:

Dedicate a space for expediting orders. As your delivery service grows, consider whether it’s worth having an employee who exclusively fulfills delivery orders

If needed, create two identical production lines back-of-house Designate a so you don’t delay in-house convenient pickup orders. One line can be closed point that won’t when volume is lower disrupt guests

*Always consult local ordinances before making modifications to your space. 6

Convert dining room Install a warming cabinet and space into storage space a fridge for staging orders as for packaging if needed close to your pickup point as possible. Initially, a shelf or two within a fridge may work, but consider whether you’ll need to devote an entire fridge to delivery in the future PREPARING YOUR RESTAURANT FOR DELIVERY

Use clear signage to show delivery drivers where they can grab orders without waiting in line or blocking staff or customers Restaurant Technology

Investing in the right restaurant technology and hardware can help you convert and retain customers, keep your margins strong, and optimize your operations.

Some digital enhancements are cheap and straightforward to implement—like QR codes. Other technologies will require deeper research—like upgrading your point-of-sale (POS) system. 8 PREPARING YOUR RESTAURANT FOR DELIVERY THE FUTURE OF POINT-OF-SALES (POS) SYSTEMS:

Think the modern POS is just a touchscreen cash register? Think again. Today’s systems can help you increase your sales, make tough business decisions, and even improve the guest experience.

The right POS can increase your profits by:

Crunching data on food costs vs. item price Identifying best-performing items by volume and profit Automatically prompting upselling opportunities

It can help you make business decisions by:

Tracking front of house performance Identifying busy and slow times so you can adjust staffing Flagging underperforming menu items

And it can help you serve customers through:

Tableside ordering and payment Quicker, mobile, and easily split bill payments Loyalty programs Easy setup for online take-out orders

Tip: Planning to partner with a third-party delivery service? Check that your preferred POS will integrate with their system. 10

SHOULD YOU UPGRADE YOUR POS?

A new POS can help your bottom line—but between hardware and software subscriptions, it can be an expensive move.

Here are some questions to ask if you’re deciding whether to upgrade your POS:

1 Do you expect very high volumes of delivery orders?

2 Will you need to be able to turn off online ordering during in- house rush times? PREPARING YOUR RESTAURANT FOR DELIVERY

3 Does your current POS sync with your inventory and help you save money by providing detailed data on food waste or help you order stock based on predicted customer patterns?

4 Will you be using a third-party delivery platform like Uber Eats, DoorDash, Grubhub, or Postmates?

5 Will you be using your own delivery drivers and your own online ordering system?

6 Do you want a long-term solution that can handle delivery dispatch, inventory and scheduling?

7 Do you need online and on-site payment processing?

8 Are your staff spending too much time manually inputting orders from delivery apps into your POS system? Using QR Codes

A QR code is a simple, touch-free way to connect your customers with your menu, website, or payment portal.

Simply put, a QR code is a barcode that your customers scan with their smartphone—a feature that most models now do automatically through the built-in camera app. 12

QR codes can connect customers to any web page or online portal of your choosing. This could include:

Your menu, either on your website or within a third-party delivery app

One of your social media pages

A web page containing special information—like promotion details or COVID-19 safety precautions

A review site, like Yelp or Google My Business, for prompting customers to share positive feedback

HOW TO SET UP AND USE QR CODES:

It’s free and easy to set up a basic QR code using an online service or your POS software. For dynamic QR codes (which feature editable destinations—ideal for materials that are expensive to reprint) or QR codes that match your branding, you may have to pay a small fee. PREPARING YOUR RESTAURANT FOR DELIVERY Here are a few places that you can put those QR codes to work:

1 Promotional materials

Include them on posters, flyers, and coupons to make it easy for potential customers to access your menu.

2 In-bag marketing

Include a QR code on a photogenic business card, sticker, or postcard in your delivery orders to help customers find your menu again.

3 Table talkers

Use QR codes to direct customers to a touch-free menu, or even an interactive menu where they can order and pay for meals, allowing your staff to serve more tables and offer additional social distancing. Some POS systems have this full-service functionality, and it comes built in with third-party delivery services like Waitr, DoorDash, and Uber Eats. 14

4 Curbside signage

Posting a QR code outside can facilitate to-go orders and work as an advertisement for foot traffic. PREPARING YOUR RESTAURANT FOR DELIVERY 5 Receipts

With some POS systems, you can offer touch-free payment through customers’ payment-enabled smartphones using a QR code. You can also set it up yourself through payment platforms such as PayPal.

DO: D O N’T:

Use QR codes in digital Use your QR code like spaces (like social media) any other graphic your where you can offer a customers might see offline URL or photo instead Delivery Apps

Americans are more comfortable than ever ordering delivery, with sales for delivered meals growing 125% year over year (September 2020; Second Measure).

So, what’s the best way for you to get a piece of the projected $26.5 million (Statista) spent on delivery from U.S. restaurants? Partnering with a delivery app is a simple way to dive in. 16 PREPARING YOUR RESTAURANT FOR DELIVERY Investing in the right restaurant technology and hardware can help you convert and retain customers, keep your margins strong, and optimize your operations. Some digital enhancements are cheap and straightforward to implement—like QR codes. Other technologies will require deeper research—like upgrading your point-of-sale (POS) system.

ABOUT THIRD-PARTY DELIVERY APPS

Third-party delivery apps allow you to outsource the lion’s share of logistical challenges stemming from delivery. Plus, they’ll get your brand in front of a huge new customer base while you focus on creating delicious meals. You can typically start taking orders via delivery app in just a few days.

Most delivery apps charge a per-order commission fee of between 15%-30%. This fee helps to cover the cost of delivery drivers, software development and, in some cases, payment processing. You may also pay additional fees for:

Participating in in-app promotions One-time setup costs Hardware costs for tablets A professional food photoshoot

Tip: Keep in mind that consumers often use more than one of the four major apps for food delivery, and many brands choose to partner with more than one delivery app. 18 DIYing Delivery

Of course, the option exists to run delivery yourself if you want more control of the entire process and to avoid those commission fees. But—and this is a big but—doing it yourself comes with its own costs and headaches.

C S ON O S R P PROVIDING DELIVERY IN-HOUSE:

Must source and pay for an Full control of the delivery online menu, food photography, experience from kitchen to ordering, dispatch, payment doorstep systems and any associated hardware (e.g. tablets)

Responsible for hiring, No commission fee paid background checks, to delivery apps insurance, and training of

delivery drivers PREPARING YOUR RESTAURANT FOR DELIVERY

Not competing directly No access to the larger with similar restaurants within a prospective customer base delivery app provided by delivery apps

Increased control over Must develop and execute your customer data and own promotions and loyalty customer relationships program Delivery Apps

Conveniently, delivery apps sometimes offer a no-commission trial period so you can figure out if they’re the right fit for your business before making a big investment in your own delivery service.

THE BIG FOUR

When diners order meals through an app, they’re overwhelmingly ordering with DoorDash, Grubhub, Postmates, or Uber Eats:

OTHER: 1%

POSTMATES: 8%

GRUBHUB: 20%

DOORDASH: 49%

UBER EATS: 22%

Pie Chart: Sept. 2020 Share of Meal Delivery Monthly Sales (Source: Second Measure) 20

DOORDASH GRUBHUB POSTMATES UBER EATS

# OF 310,000+ 140,000+ 500,000+* 400,000+ PARTNERS

# OF 20M 30M 10M 103M** USERS

# OF GLOBAL 4,000+ 2,700+ 4,200+ 6,000+ CITIES

FREE Yes No (as of Nov. (have in No No TRIAL? 30, 2020) the past)

USE YOUR OWN Yes No No Yes DRIVERS?

Postmates DashPass: Grubhub+: Unlimited: Eats Pass: SUBSCRIPTION Free delivery Free delivery Free delivery, Free delivery PREPARING YOUR RESTAURANT FOR DELIVERY and lower fees and SERVICE no surge and discounts for users promotions pricing

Free trial, #1 in customer Avg. delivery free menu spend, deliver Robust time under photoshoot, more than SOME promotions 30 mins; biggest share meals; “Party” and loyalty Sponsored DIFFERENCES of monthly ordering; program Listings sales among promotions, promotions delivery apps 24/7 delivery

*Postmates, partners’ include stores **Includes other Uber platforms, Q3 2019

Sources: CNET, Statista, Business of Apps In Their Own Words

Here’s what DoorDash, Grubhub, and Uber Eats each say about their approach to delivery:

DOORDASH

“DoorDash is a value-add to your current business as it puts you in front of a whole new customer base. Your menu is featured on the largest food delivery app in the market, providing a new revenue stream, all incremental to your current business. With features like marketing promotions, off-platform delivery fulfillment, and online storefront, DoorDash helps you grow your brand and stand out from your competitors. You’ll be equipped with an easy-to-use Merchant Portal for all of your tracking, reporting and updating needs as well.”

OP TIP T S ’ H

O O “Think about how you organize your third-party app menus

D and what you offer. Traditionally, menus are organized based on meal structure for on-premise dining, but customers ordering delivery are not thinking about their meals the same way. Restaurants have to keep in mind that some menu items are difficult to execute or won’t travel well, so leaving those off of third-party menus may make more sense.” 22

GRUBHUB

“Grubhub is a leading food-ordering and delivery marketplace with 30 million active diners across the U.S. With more than 20 years of experience, Grubhub’s mission is to use our platform to drive more orders, new customers, and provide delivery services to our restaurant partners to help them grow their business. With the industry’s most robust rewards and loyalty engine, Grubhub helps restaurants drive diner acquisition, order volume, and overall sales through data-driven marketing campaigns and diner engagement programs.” PREPARING YOUR RESTAURANT FOR DELIVERY

P TIP TO

S ’

H B

U “Optimize your delivery menu. We’ve seen restaurant brands R

G add meal kits, combos, and other high-value items exclusive to their delivery menus to drive higher average tickets on these orders and maximize profitability.” UBER EATS

“Uber Eats is helping over 400,000 restaurants in more than 6,000 cities globally reach more customers and grow their business. With an average delivery time under 30 minutes and with over 103M active users, restaurant owners can reach even more customers by promoting their unique brand and menu with our suite of delivery and marketing solutions.

“Let your restaurant stand out:

Uber Eats’ unique Sponsored Listings solution lets restaurant owners advertise their restaurant and put it front and center in the Uber Eats feed for potentially millions of new customers.

“And drive repeat business:

Reward customers with a loyalty program that keeps them coming back. Uber Eats’ loyalty programs offer a way to build long-lasting relationships with your restaurant’s biggest fans.”

OP TIP T ’ S T

E B “From offering low-cost pickup or takeout services, using your

U own delivery people, to fully integrated online ordering with your website, Uber Eats gives you the ability to optimize your restaurant operations and save on costs.” 24 PREPARING YOUR RESTAURANT FOR DELIVERY Avoiding Traffic Jams

Restaurant teeming with foot traffic since teaming up with a delivery app? Great news! Here’s how to keep your restaurant from overcrowding:

More than one entrance/delivery window:

Designate one of your entrances or delivery windows for pickup orders, keeping in mind all the places that delivery drivers can park in your area and which direction they may arrive from.

Single entrance:

Print some clear signage to direct delivery drivers to your pickup point or a waiting area. A well-designed sign on your front door is perfect. Add another posted sign or sandwich board inside if further direction is required. 26 Delivery Apps

Envisioning delivery as a major part of your business, but feeling limited by your space? It might be worth considering expanding to a delivery kitchen (also known as a ghost kitchen, virtual kitchen, or dark kitchen). We’ll dive into delivery kitchens in more detail in Part 3. PREPARING YOUR RESTAURANT FOR DELIVERY The Food 28 THE FOOD Crafting a Delivery Menu

Your restaurant’s menu is the culmination of your creativity, your brand, and what your guests love. Your delivery menu adds a few twists to that formula. Typically, top-performing delivery menus are made up of 15–20 dishes that meet the essential criteria outlined below:

EACH ITEM SHOULD: HOW TO DO THIS:

Find the right food and packaging Travel very well combination for withstanding time and temperature change

Be able to be If an item’s prep time delays the prepped in a rest of the order, modify it or timely manner remove it from the delivery menu

Have a profit margin that Adjust your pricing based on covers your delivery costs accurate recipe costing

Cut or overhaul dishes that add Sell well complexity to your operation without returning profits

Tip: Does 20 items feel like too few? Keep in mind that delivery customers want to make quick decisions. By providing just your very best dishes, you’re actually doing them a favor—and your delivery service will be simpler to execute well. 30 THE FOOD PORTABILITY: DESIGNING A MENU THAT TRAVELS WELL TRAVELS THAT A MENU DESIGNING PORTABILITY: a soggy mess. By into meal constructed a carefully turn Delivery can you’ll conditions, real-world under items menu your of each testing keep meal—and a subpar of disappointment the customers spare more. for back coming them dishes, packaging your of each preparing simple as be as can Testing in them storing then and be delivered, to going were they if as them and item each Taste minutes. 30 about for delivery bag insulated an your want you what it Is fresh. to compared looks it how consider experience? to customers Want to be even more thorough? Take your delivery for a test drive drive a test delivery for your Take thorough? more be even to Want chef your out, have While you’re delivery radius. your edge of the to Do a side- return. your on fresh so they’re items same the prepare room there Is photos. after” and “before take and test taste by-side some make tips, troubleshooting our out Check improvement? for again. test and tweaks, Troubleshooting

HOW TO IMPROVE YOUR DELIVERED ITEMS:

1 Change the Packaging

Did things spill, get soggy, or cool off? Consider alternative packaging arrangements, like changing the material you’re using or cutting steam vents, all of which we’ll get into in the next section.

2 Tweak the Recipe

Some menu items that are a favorite in-house may not shine after delivery, but can be adjusted to travel well. For example, a perfectly prepared medium-rare steak will continue to cook in transit due to its own residual heat, arriving overdone. With a slight tweak, you can send out a delivery-friendly steak sandwich instead. Similarly, retool a breakfast platter to become a breakfast burrito stuffed with eggs, bacon, and hash browns.

3 Remove the Item From Your Delivery Menu

In some cases, it will be clear after testing that a menu item is really best served fresh in your dining room. Having some items exclusive to in-house dining will keep your delivery menu lean while giving loyal customers a delicious reason to come visit you in person. 32 THE FOOD

Add up the raw food cost of every ingredient in a recipe a recipe in ingredient every of cost food raw the up Add

If your price results in a food cost percentage of 40%+, it’s too too it’s 40%+, of percentage cost a food in results price If your price. that at offer to you for expensive underpricing likely you’re 25%, under then you leaves price If your table. the on money leaving and item your Tip: It’s vital that your portion sizes are consistent, both to to both consistent, are portion sizes your that vital Tip: It’s under costs food your keep to and happy customers keep of use the with consistent to be staff your Train control. budget. your and recipes your to true keep to tools measuring

TAKE CHARGE OF YOUR PROFIT MARGINS PROFIT YOUR OF CHARGE TAKE menu? your on item each of cost true the know Do you competition? your against up stacks it how about What margins. help could boost your costs food your Optimizing PERCENTAGE COST FOOD YOUR ASSESSING cost food the determine to is pricing menu to approach A standard item. each of percentage one: Step oil). olive and salt, pepper, the to (down servings makes, of it number the by cost recipe two: Divide that Step food your That’s price. sale your by cost per-serving that divide and cost percentage. Food Costs Food Increasing Your Margins

Found a few dishes that aren’t meeting your food cost goals? Here are some options:

Is an item’s price at the low end (under 25%) of the food cost percentage range? Consider raising it’s price if your customers will accept it.

Is an item’s food cost at the high end (over 40%)? Research your competition and your market to see if there’s room for you to raise its prices. If not, you may need to cut this item from your delivery menu or redesign it.

Try replacing cheaper, preparation-heavy ingredients with more expensive but pre-portioned ones. Your ingredient costs may appear to go up, but you’ll save on labor and potentially on food waste, too.

Reduce portion sizes while keeping prices unchanged.

Negotiate lower costs with your vendors.

Swap out premium ingredients for lower-cost alternatives that won’t eat into the quality of your dish. 34 THE FOOD If it’s an appetizer that’s likely to be shared, offer it in even even in it offer be shared, to likely that’s appetizer an If it’s odd. than portions, rather and “regular” size.” “family dish—like of a Offer sizes two microwave Consider leftovers? amazing make food your Does entice simple to reheating makes that packaging oven-safe and bigger orders. A LITTLE MORE ON PORTION SIZES PORTION ON MORE A LITTLE in-house the than needs different has deliveryThe consumer enough order to planning family, with be sharing may They diner. they’re something with food your combining even or leftovers, for delivery context. the for portions your home. Assess at up cooking example: For Creative Menu Ideas

A creative menu combined with an understanding of how delivery customers like to order can lead to higher per-order spending. Here are a few ideas to get you started:

Add-ons: Delivery consumers are less sensitive to price, so provide upselling opportunities like protein add-ons, extra toppings, sauces, side dishes, drinks, and desserts. Most third- party delivery apps make it simple to offer these incremental add- ons.

Versatility: What can you make with your existing ingredients to offer more choice without making your inventory more complex? A pizza place might offer garlic knots made with its signature dough; an Indian restaurant already serving paneer and paratha might start making kathi rolls; a pub might deliver both fish tacos and fish and chips.

Meal Kits: Try offering a deconstructed version of a bestseller that your customers can cook up at home as a meal kit. Your customer is fed and entertained while feeling even more connected to your brand.

Family Packs: Can you create a dinner for two or a family-style meal? These bigger-ticket orders can encourage a high per-order spend and simplify your customers’ ordering experience.

Tip: For the sake of simplicity in your kitchen, consider sticking with an all-day menu. It means fewer ingredients, fewer packaging requirements, and simpler training for your cooking staff. If you’re famous for your lunch specials and you want to bring that to a delivery context, just be sure to cost out each item so you know you’re meeting your margins. 36 THE FOOD Packaging

Your packaging is so much more than a box to get your meals from A to B. It’s a way to extend your hospitality into your customers’ homes. Plus, beautiful packaging can encourage repeat sales, with 72% of Americans saying package design in general influences their purchasing decisions (Ipsos). And it looks great on social media.

Here’s how to make the most of your packaging, from choosing the right delivery materials for your food and troubleshooting different packaging to executing your brand. 38

QUICK TIPS

Ensure your packaging matches your values and your customers’ expectations. So, if you offer local, grass-fed beef and organic vegetables, serve it in a compostable box— not Styrofoam.

Match your packaging to your serving size. It should be the smallest size that comfortably fits the dish, but not so small that things are going to spill.

Your packaging is a little billboard that has been allowed into your THE FOOD customers’ home. Don’t miss out on that marketing opportunity. EVALUATING PLASTIC, CARDBOARD, AND COMPOSTABLE PACKAGING OPTIONS

The right packaging for your restaurant comes down to your budget, cuisine, environmental values, and customers’ expectations. Consider the following when you’re choosing your packaging materials: 40

C S ON O S R P PLASTIC CONTAINERS

Recyclable in some areas Often not recyclable (79% of the and may be reusable by world’s plastic is not recycled, the consumer per Science Advances)

Some municipalities are Lightweight, sturdy, looking to ban single-use and leak-resistant plastics and some consumers seek to avoid such plastics

Visually appealing More costly

May be microwave- friendly and freezer-safe

PAPER BOXES

Lightweight May not be sturdy

Collapsible and nestable, Can leak requires less storage space

Lower environmental Often no compartments impact; biodegradable

Heat-lamp tolerant and may be microwave-friendly

Affordable

COMPOSTABLES

Completely compostable in Customers may lack some commercial facilities access to a compost site

Sturdy More costly

Provides some insulation Often no compartments

May be microwave-friendly and freezer-safe THE FOOD Has menu testing revealed some issues in the way you’re packing your food?

Here are some fixes:

PROBLEM SOLUTION

Reinforce the bottom of the plastic or paper carryout Stacked food fell bag with cardboard. Wrap over and/or spilled spill-prone soups and sauces in plastic wrap

Vent the boxes, or source packaging designed with Food became soggy venting or an open top. Package sauces and broth separately from the food

Line your container Food became greasy with corrugated paper

Line the box with wax Paper box leaked paper or find an alternative box with plastic coating

Switch to a more insulated Hot food cooled container, which can include too much or cold compostable options. food warmed up Separate hot and cold items as much as possible 42

IN- AND ON-PACKAGE BRANDING OPPORTUNITIES

Delivery brings new opportunities to impact the customer experience. While you can’t offer customers the same cozy ambience, friendly welcome, and tantalizing aromas as they would get in-house, you can set yourself apart even beyond your food.

Here are some budget-friendly ideas to brand your packaging:

Seal take-out containers with a sticker featuring your logo and website.

Make a rubber stamp of your logo for stamping your paper takeout bags and boxes.

Custom print some or all of your packaging with your logo. You can even brand your packaged condiments.

Go the extra mile and source attractive, memorable, and functional packaging.

Include thoughtfully designed printed menus or a QR code that links to your menu. Be sure to mention your pickup specials or other discounts. THE FOOD DELIVERING THE LITTLE EXTRAS

With nearly two-thirds of Americans ordering delivery or takeout at least once a week, being memorable is key to enticing customers back for another helping.

Here are some in-bag treats that REEF’s NBRHD Kitchens has executed with our partners:

A Spotify playlist with QR code on a nicely designed note card. This can be a playlist they would hear in-restaurant, it could be seasonal, or it might match the meal.

A printed cocktail recipe card that pairs with one of your dishes.

A freebie promotion (such as a free dessert). 44

And here are even more creative ways to drop a bit of hospitality in with a customer’s order:

Trivia questions (and answers). This is a great match if you host in- house trivia nights or if your food pairs well with sports.

A sample size of a signature sauce or seasoning mix with directions on using it in home cooking.

A good old-fashioned branded matchbox.

A short story of how your business or a beloved dish came to be, especially if it has roots in your family history. THE FOOD A simple handwritten thank-you note. Food Photography

Tantalizing food photos are the difference between a new customer finding you or swiping past you on a delivery app. According to DoorDash, including photos of your menu items increases upsell conversions by up to 19%.

Stunning food styling and photography can help convert new customers in those few crucial moments when they’re scrolling a delivery app in search of tonight’s dinner. Food photography is an art and while you likely have access to a camera, you may not be able to pull off the top-notch images required to show your food at its best. We highly encourage bringing in an experienced food photographer for this task. 46 THE FOOD WHAT’S YOUR BUDGET?

Photographers’ rates vary based on their experience, your location, and the level of styling required. As with any other specialty service, do your research and request quotes from several photographers.

The cost to hire a photographer can be based on the number of final, edited images you would like (this could be $50–$200 per image or more), or the photographer’s day rate (this could be $500–$600 for a newer food photographer and $1,500+ for a more experienced professional).

Be sure to review the photographer’s portfolio of food work specifically. Just because they can expertly capture the romance at a wedding doesn’t mean they can make people fall in love with your burgers.

Stunning food photography can be expensive, but keep the following in mind:

You don’t need to photograph every dish, just your top 5–10 bestsellers and the dishes that set you apart.

You can use these photos beyond your menu—like in your social media and other marketing.

Some third-party delivery apps include food photography in their fees or offer it as an add-on.

Make sure to only use your photos within the bounds of your photography user agreement. 48 THE FOOD FOOD STYLING 101

While you can hire a food stylist to work with your photographer, you or your chef might prefer to take the lead on food styling. Research has found that plated food is rated as more delicious, so take time to be purposeful and creative in styling each menu item.

Add appropriate garnishes with pops of color (herbs, peppers, and citrus) and texture (oil, salt flakes, fresh ground pepper) to improve the look of items that are a bit more amorphous or single-color, like some soups, stews, and noodle dishes.

Create a background that aligns with your brand, whether it’s your iconic pottery dishes, branded napkins, or a textured tabletop.

Create realistic expectations so the customer doesn’t feel misled.

Show off your assets. If your veggie wrap comes with your signature handmade tzatziki that people crave for days after, make sure that sauce shines in the photo.

Most food photos are shot from above or straight on. Discuss options with your photographer so you can style the food appropriately. 50

Everything we’ve shared so far can help you to smoothly launch delivery from your current kitchen.

That’s not the only way to efficiently execute restaurant delivery, though. In the next section, we’ll dig into the delivery-only kitchen model, including how REEF’s NBRHD Kitchens can help you expand your business with no capital investment or operational costs.

Tip: You may be tempted to use stock photography if your menu items follow a standard formula, like sushi or wings. While it may seem to save you money in the short run, it’s not recommended. Customers may feel misled if what they receive isn’t what was pictured. THE FOOD Delivery-Only Kitchens 52 DELIVERY-ONLY KITCHENS Delivery-Only Kitchens

In the simplest terms, a delivery-only kitchen is just what it sounds like: a restaurant that reaches customers exclusively through delivery. With no front-of-house or waitstaff, a delivery-only kitchen (also known as a ghost kitchen, cloud kitchen, or dark kitchen), can fulfill more delivery orders than a brick-and-mortar location at a much lower cost.

This model is a proven growth path for beloved local restaurants, small chains, and global franchises alike. And with REEF’s NBRHD Kitchens, you can get started with no capital investment.

HOW DO THEY WORK?

All delivery-only kitchens have a few things in common:

They are licensed, regulated kitchen facilities

They reach customers digitally, either through their own websites, third-party delivery apps, or both

They don’t offer in-house dining

Beyond that, there are a few different approaches to consider based on your business goals and available capital. 54 DELIVERY-ONLY KITCHENS Cost Comparison

While the costs of opening a restaurant vary widely based on your location and your concept, the numbers don’t lie: a delivery-only kitchen requires a far smaller investment than a dine-in location.

APPROXIMATE COSTS TO LAUNCH RESTAURANT, FOOD TRUCK, AND DELIVERY-ONLY KITCHEN CONCEPTS: FOOD TRUCK TRUCK FOOD $70,000

COMMERCIAL KITCHEN KITCHEN COMMERCIAL $20,000 VIRTUAL BRAND WITHIN EXISTING RESTAURANT RESTAURANT EXISTING WITHIN BRAND VIRTUAL $5,000 REEF’S NBRHD KITCHENS KITCHENS NBRHD REEF’S $0 BRICK AND MORTAR BRICK $750,000—$1.2M

Sources: USFoods.com, Los Angeles Times, Forbes 56 Delivery-Only Kitchens

SHOULD YOU USE ONE?

You already know plenty about the opportunities of delivery in general. Delivery-only kitchens? They have some perks of their own:

Lower overhead with more accessible real estate prices, fewer salaries, and less printed materials to replace when your menu changes. (Of course, there’s no cost at all when you partner with NBRHD Kitchens.)

Make your dreams happen with less investment, whether that’s expansion or experimentation.

Lower costs can mean better margins than the industry standard of 3%–5% in full-service restaurants and 6%–9% in fast food (DoorDash).

Outsource delivery to another location to keep your dining room free from disruptive pickup traffic.

Capitalize on the strength of your brand by expanding within your hometown and beyond. DELIVERY-ONLY KITCHENS Different Kitchen Models

VIRTUAL BRAND

Maybe you have a dine-in restaurant right now and you’ve also got an exciting new idea you would love to test. With a virtual brand (and enough room in your existing operation), you could launch right out of your current kitchen.

Alternatively, turn to an innovation lab, like NBRHD Labs, where you can workshop those new ideas without overwhelming your kitchen space at no cost to you.

LEASE A SHARED COMMERCIAL KITCHEN

In some cities, commercial kitchen facilities—previously the realm of caterers and retail food producers—have been tweaked to suit the delivery model. Rental rates can vary widely depending on your area and you may need to buy or lease some of your own equipment.

These kitchens often have common spaces, so keep in mind that you won’t have control over who else is working there and how tidy they keep the shared cooler. 58

LEASE GHOST KITCHEN SPACE

Similar to a shared commercial kitchen, ghost kitchen-specific enterprises exist as an option to speed up the process of launching your delivery-only restaurant. The kitchen is outfitted with basic equipment and may include some delivery optimizations, like a POS system that plays nicely with delivery apps.

You’re in charge of staffing and inventory, and in addition to rent, you might pay a monthly fee. This model can work for a single location, but because you’re in charge of staffing and inventory, expansion can be costly and time-consuming.

THE NBRHD KITCHENS MODEL

REEF’s NBRHD Kitchens provide a turnkey licensing model to business owners. When you partner with NBRHD Kitchens, we take on 100% of the capital, operational, and labor costs associated with your delivery-only kitchens—and you receive a percentage of every single sale.

This means your brand reaches more customers in more places without paying rent, salaries, food costs or third-party delivery app fees. Not to mention you outsource inventory management and day- to-day minutiae to us. REEF takes care of it all. DELIVERY-ONLY KITCHENS NBRHD Kitchens Model

HERE’S HOW A NBRHD KITCHENS PARTNERSHIP WORKS.

1 Once we’ve determined your brand is a great fit for REEF, our pilot project begins. We’ll typically launch your NBRHD Kitchen in the city where you and your flagship restaurant are so you can be closely involved.

2 You’ll work directly with our team to identify which of your menu items are best suited to delivery, and we’ll work together to train our skilled kitchen staff to execute your vision. When—and only when—you’re happy with the execution, your brand will go live to thousands of new customers across the major delivery apps.

3 During the pilot period, our kitchen staff will prepare your delivery orders in one of our conveniently located kitchen vessels. We’ll learn and adapt along the way to maintain a high quality and consistent output.

4 Following a successful pilot, we’ll work together to expand to new neighborhoods. Maybe you’d love to open up across town—or maybe you’d like to seed a new, major city in the U.S. or Canada. 60

ADDED VALUE WITH NBRHD KITCHENS

Because we do things our own way at REEF, there are some benefits in our licensing model that we’re especially proud of:

Room to focus on what you do best: While we take on day-today operation of your delivery-only kitchen, you can put your energy wherever else you want it. Maybe that’s developing your next big culinary idea, providing exceptional customer service for your brand, or spending more time with your family.

Reach 70% of North America’s urban population: Our expansive (and expanding) network can help your brand thrive as it reaches new markets.

Efficient pickup: Our kitchen vessels are located in repurposed parking lots, minimizing parking hassles for delivery drivers and saving them from waiting in line with dine-in customers, all of which mean speedier delivery times.

A true partnership: Our licensing model means that when you succeed, we succeed, so we’ll work together to continually achieve more. DELIVERY-ONLY KITCHENS Success Story

BURGERFI

In early 2020, BurgerFi was serving up their natural Angus beef burgers in 120 locations across the country and looking for a way to bring more meals to more mouths in more places. Then the “better burger” brand found the perfect partnership in REEF, a fellow South Florida-born business. 62

Practice Makes Perfect

From the start it was clear that BurgerFi and delivery were a match made in burger heaven. For ideal delivery results, though, a bit of menu engineering was on the table. BurgerFi’s high-quality burgers, cage-free chicken, and hand-cut fries travel well, even if there’s some unexpected traffic along the way. But certain items, like their onion rings, custards, and shakes, are best enjoyed in-house, so they remain exclusive to BurgerFi’s brick-and-mortar locations. And while delivery customers won’t be sitting at the upcycled milk jug tables that are part of BurgerFi’s sustainability-minded dining rooms, delivery packaging for the restaurant is eco-friendly.

More, Please

The midsize chain’s tried and tested supply chain made the expansion to delivery practically seamless. The adoption of NBRHD Kitchens’ prep kitchen and execution kitchen approach means timely prep and delivery are built in. For example, BurgerFi’s addictive fries DELIVERY-ONLY KITCHENS are hand cut every morning in a prep kitchen, then transported to the execution kitchen where they’re cooked to order and paired with Cajun seasoning, done up urban style (parmesan, herbs, and garlic aioli), or with good old salt and pepper.

BurgerFi has launched 9 NBRHD Kitchens in 3 cities throughout 2020, with more to come in 2021. References

PART 1

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PART 2

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PART 3

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