The Meteoric Rise of Food Delivery & The Ghost Kitchen

Over the last 5 years, food delivery has grown 300% faster than typical dine-in (upserve.com). While the Covid-19 Pandemic exacerbated this growth even more. Whether they were fine-dining, casual, fast casual, cafes or mom and pop establishments, restaurants across country were thrust into the world of delivery, ready or not.

So, you know what delivery is. You’re probably familiar with services like GrubHub and Doordash, even if you’re not using them. But, what exactly is a Ghost Kitchen?

It’s one of the most current trends in the hospitality industry today. Ghost Kitchens are takeout and delivery-only food service brands. They can be accomplished in several different ways.

1. Existing establishments can utilize the hours they aren’t open for full-service to create a secondary, takeout only service during down time. It requires much less staff, allowing them to maximize profits.

2. Another option is for a caterer or chef to rent a kitchen space and set up a takeout service out of that. There will be no dine-in at any time and will fully operate as the delivery/takeout only model.

GrubHub, Doordash and the other delivery services are creating Ghost Kitchens of their own. They offer restaurants a one-size-fits-all solution. But we know that cookie-cutter approach just won’t work for everyone.

Every restaurant is different, so we’re offering them something different. We partnered with expert Restaurant Consultant and former Philadelphia cafe owner Angela Vendetti to launch our own Ghost Kitchen program. Unlike the delivery giants, we’re taking a much more hands-on, completely personalized approach.

With over 60% of consumers in the U.S. ordering takeout or delivery at least once a week, if you’re not already on board, now is the time. Adding a delivery-only service to your current restaurant can significantly increase your sales with minimal BOH and FOH costs. You’ll fully maximize sales per square foot while your dining room is unoccupied or under utilized. With current state mandates limiting dine-in service to just 25% occupancy, a Ghost Kitchen is a no-brainer to help off-set that loss.

If you don’t have a current space, a deliver-only model can allow you to test the market without a major investment. Plus, a Ghost Kitchen can be launched and running in as little as a few weeks, whereas opening a dine-in establishment can take much longer.

We can help you capture the abundance of delivery opportunities out there by creating a marketing strategy and putting it into action.
– Help you develop a strong concept and menu that will work for take-out
– Set up your online-ordering on popular delivery apps
– Assist you in training procedure development for your staff
– Design and implement all necessary branding (photos, social media content, labels, postcards, menus, etc.)
– Aggressively advertise and market your menu, spread awareness and create a loyal following and repeat business

A Ghost Kitchen can be the saving grace for many restaurants, chefs and caterers who’ve been struggling with the pandemic. Let’s set up a consultation to see if it’s right for you.

Call 610.829.1333 or email kim@cliffross.com

The Facebook Ad Boycott: Positive or Pointless?

Facebook has experienced its fair share of drama over the last several years (remember 2018’s #DeleteFacebook?), but this year is proving to be an especially challenging year for the social media giant. Currently, over 750 large corporations have joined the likes of Starbucks, Coca-Cola, Adidas, The North Face and Hershey, in a pledge to go silent on the platform, halting all advertising. And every day, that number has been snowballing as more major companies join the #StopHateForProfit boycott, which also includes Facebook-owned platform, Instagram.

The boycott is in response to the growing frustration with Facebook’s lack of policing hate speech and other dangerous or false content on it’s platform. Just days ago, CEO Mark Zuckerberg, Sheryl Sandberg and other Facebook executives met with boycott organizers, civil rights activists and advocacy groups via Zoom. Largely, it seem organizers were not impressed by Facebook’s lack of hard and fast plans for preventing hate speech and disinformation.

What will this boycott ultimately end up costing Facebook? Plenty of experts agree, that number is likely to be in the billions. Eric Schiffer, chairman and chief executive of the Patriarch Organization and Reputation Management Consultants, says he’s expecting, “a revenue bleed out of more than $7.5 billion” this year (Dwoskin & Telford, The Washington Post). The majority of the platform’s revenue comes from it’s global advertisers, however ultimately, that won’t move Facebook’s bottomline much at all.

To put things into perspective, Facebook’s ad revenue in 2019 was $69.7 billion (The Wall Street Journal) Of that, the 8 largest boycotting brands spent about $689 million, and the top 100 spend $6.4 billion. That leaves the great majority of revenue coming from small and mid-sized companies- about 76%, according to a recent Financial Post article.

For huge corporations like Verizon or Ford, those ad dollars are a mere fraction of their marketing budgets.

But, for smaller brands and advertisers, it’s no drop in the bucket. If you’re one of the many small businesses that boost your posts or run ad campaigns on Instagram or Facebook, you’re probably wondering what kind of repercussions boycotting may have for you. If you ask Mari Smith, co-author of Facebook Marketing: An Hour A Day, that question, she believes, “And if small and medium businesses cut their ads altogether, even for one month, this could cause a massive loss of revenue for those business owners, Smith said, “joining the ad boycott would actually negatively impact their bottom line infinitely more than it would Facebook’s,”(Gollom, CBC News) In order to really hurt Facebook, these major players would have to cease advertising for much longer than of July.

Facebook advertising has proven to be effective at reaching a highly targeted audience and produce a uniquely rapid ROI. Many experts believe it’s “the most targeted traffic ad dollars can buy.” (Gollom, CBC News) Today, most small businesses realize the importance of a consistent social media presence and the value of that advertising. Your consumer is on Facebook, and if you’re not, you’re missing a critical opportunity to get your message to them. Boycotting advertising may not be realistic for many small business. It’s the central medium for reaching their key audience.

As the boycott gained steam, Facebook’s share price fell 9%- that’s around $56 billion of its market value (Gollom, CBC News). It prompted CEO Mark Zuckerberg to announce his plans to more effectively “prohibit hate speech in ads and better protect groups such as immigrants from attack” (Barker, The Financial Times). It remains to be seen what kind, if any, of a lasting impact the boycott with have on Facebook, and if the platform can stick to it’s promises of policy changes enough to appease advertisers and gain back their business.

 

Sources:

Gollom, Mark. CBC News. “Companies are boycotting Facebook. But who is Hurt More By The Tactic?”. Jun 30, 2020. https://www.cbc.ca/news/business/facebook-boycott-ads-1.5631696

Facebook Faces an Advertiser Boycott. Will Its Business Take a Hit?” The Wall Street Journal. July 1, 2020.https://www.wsj.com/graphics/facebook-faces-an-advertiser-boycott/

Dwoskin, Elizabeth and Telford, Taylor. Facebook is working to persuade advertisers to abandon their boycott. So far, they aren’t impressed.” The Washington Post. July 3, 2020. https://www.washingtonpost.com/technology/2020/07/03/facebook-advertiser-boycott-hate/

Worst. Jingle. Ever.

Known for their incessant and corny television commercials (this one has been on the air for almost three years now) Liberty Insurance has come up with a new jingle. No doubt it was approved by a committee that “refined” it to death, while their ad agency laughed all the way to the bank. Ok, ready for this awful idea? Here goes:

“Liberty Liberty Liberty, Liberty.” (sung by a chorus)

Wow. It does score points for driving the point home. Their name is “Liberty Insurance”. So it re-re-re-reinforces their name. Ok. So it sort of works, but with a high level of annoyance.

While advertising does work best when it is repetitive, their is a right way and wrong way to accomplish this …

A jingle or tagline should work to buttress the positioning of the product or service. This one sinks to new lows as it dumbs down the message to annoying happy people singing the name of the company. You have to ask yourself, what does this accomplish? In a moment when someone needs insurance, will this chorus repeat in their head? Maybe. Unless they are a mindless drone, they’ll probably think a little more deeply about what insurance company to choose.

So their jingle is jangling. I’ll take Flo or the Gecko any day over Liberty’s cast of unrelatable and overplayed characters.

Continue reading Worst. Jingle. Ever.