In the latest episode of Hospitality Hangout podcast, Michael Schatzberg “The Restaurant Guy” and Jimmy Frischling “ The Finance Guy” chat with Geoff Alexander, President and chief executive officer, to explore using dark kitchens to generate revenue.
Alexander talks about how he started back in 1993 with the privately held restaurant group Lettuce Entertain You Restaurants that Rich Melman launched in 1971. He says that Lettuce Entertain You has created over two hundred and twenty different brands in its fifty years, currently operating about one hundred and sixty restaurants among sixty different concepts.
“I’ve worked on twelve different concepts, give or take, in my tenure with Lettuce. It’s coming up on twenty-nine years in May.” Adding, “In 2009 I took over the concept of Wow Bao, a three unit brick and mortar store in Chicago serving steamed asian buns, potstickers and rice bowls.” Alexander goes on to talk about introducing self ordering kiosks, mobile desktop ordering, food trucks, and then getting involved with consumer packaged goods.
Alexander talks about Wow Bao’s growth, saying how the brand opened up fully automated restaurants with no front of house people, where the food came through automatic LED computer monitors. Since April 2020 through today they have opened over four hundred and fifty dark kitchens across the country and are on track to break five hundred by the end of October 2021.
When Alexander was asked about ghost kitchens, he defines them as a space that does not have a storefront and a dark kitchen is the areas in a restaurant that are dark right now, an area in your kitchen that you are not utilizing. Alexander says about how Wow Bao’s model was built that they have the ability to allow restaurants to turn the lights back on or start using that area of the kitchen that was dark before. He adds, based on the revenue that they can help operators generate and the profits they can bring to the bottom line. “They’re able to keep the lights on, keep people employed and that’s how we use the term dark.” says Alexander.
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