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Kroger Launches On-Premise Ghost Kitchens in Partnership With ClusterTruck

Kroger Launches On-Premise Ghost Kitchens in Partnership With ClusterTruck


OHIO & INDIANA
Friday, October 9th, 2020

The foodservice and retail sectors must have heard that it’s October, because the illusive ghost kitchen format recently gained a greater footprint. Kroger has tapped a new partner to make the expansion possible. teaming up with ClusterTruck to launch two on-premise kitchens at stores in Metro Indianapolis, Indiana, and Metro Columbus, Ohio.

Dan De La Rosa, Group Vice President of Fresh Merchandising, Kroger“Kroger remains focused on providing our customers with fresh food and experiences enabled by industry-leading insights and transformative technology,” said Dan De La Rosa, Kroger’s Group Vice President of Fresh Merchandising. “The new on-premise kitchen, in partnership with ClusterTruck, is an innovation that streamlines ordering, preparation, and delivery, supporting Kroger as we meet the sustained customer demand for quick, fresh, restaurant-quality meals, especially as we navigate an unprecedented health crisis that has affected every aspect of our lives, including mealtime.”

Kroger and ClusterTruck’s on-premise kitchens were developed from the momentum and insights of an informative pilot launched in December 2019 in Carmel and Indianapolis, Indiana, and Columbus, Ohio. Different from the off-premise concept, the new concept will repurpose approximately 1,000 square feet at each participating store to create a culinary space for ClusterTruck staff to prepare meals for quick delivery and in-store pickup. Customers can order from a menu of more than 80 meals, spanning a variety of ingredients, and best characterized as food quality you can get at a sit-down restaurant with the personality of street food.

Partnering with technology startup ClusterTruck, Kroger is expanding its ghost kitchen concept

The expansion of Kroger’s relationship with ClusterTruck reflects the retailer’s ongoing investments in providing a variety of prepared fresh food options and creating a seamless experience for customers.

According to a press release, Kroger experienced a 127 percent digital sales lift in the second quarter of 2020 as customers continued to use digital ordering options, including pickup, delivery, and ship to home.

Chris Baggott, Co-Founder and Chief Executive Officer, ClusterTruck (Photo credit: Restaurant Leadership)“ClusterTruck combines leading software, high-quality ingredients, and delicious variety to elevate the prepared food delivery experience,” said Chris Baggott, ClusterTruck Co-Founder and CEO. “As the prepared food delivery category continues to explode, we’re thrilled to play such a pivotal role in Kroger’s fresh and forward-thinking meal delivery strategy.”

Indianapolis-based ClusterTruck is a pioneer in the ghost kitchen space, building a proprietary software system that creates custom algorithms to optimize kitchen and delivery operations and removes the pain points of the third-party delivery model. ClusterTruck’s systematic approach to meal delivery allows the company to ensure all orders are delivered to the customer within just seven minutes of preparation—and on average, less than 30 minutes of ordering. The combination of ClusterTruck’s innovative technology platform, optimization of meal delivery, and launch at Kroger stores has the potential to create a new and more sustainable model.

Kroger and ClusterTruck's on-premise kitchens were developed from the momentum and insights of an informative pilot launched in December 2019

Kroger’s first on-premise kitchen is now open in Fishers, Indiana. Later this year, the second location will open in Dublin, Ohio.

Who else will launch expansions this spooky season? Keep an eye out for more reports from Deli Market News.

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