Home | WebMail | Register or Login

      Calgary | Regions | Local Traffic Report | Advertise on Action News | Contact

Login

Login

Please fill in your credentials to login.

Don't have an account? Register Sign up now.

Posted: 2021-08-12T19:21:41Z | Updated: 2021-08-30T15:52:26Z

Wendys plans to open 700 delivery-only kitchens by 2025 to meet the growing demand from people who want their fast food brought to them.

The kitchens will primarily operate in big cities in the U.S., Canada and the United Kingdom, Wendys said. The hamburger chain will open its first 50 delivery kitchens this year.

Dublin, Ohio-based Wendys is partnering with Reef Technology Inc., a Miami company that runs 5,000 delivery kitchens in 30 cities worldwide.

In a conference call with investors Wednesday, Wendys President and CEO Todd Penegor said Reef will build the locations and hire workers for the kitchens, each of which are expected to see sales of $500,000 to $1 million per year. Wendys will get royalties of around 6% of sales.

Wendys didnt say who will be delivering the food. But the company has existing partnerships with third parties like DoorDash, Uber Eats and Grubhub.

Demand for restaurant delivery was already growing before the pandemic but surged when restaurants closed their dining rooms last year. Delivery accounted for 3.3% of U.S. restaurant traffic in the year that ended in June 2019, according to NPD Group. That total rose to 8.4% in the year that ended in June 2021.

Wendys said its digital sales __ which includes delivery and mobile orders for pickup __ hit 7.5% of total sales in the second quarter of this year. Thats up from 2.5% in 2019.

It said it decided to expand its delivery-only kitchens with Reef after a successful test in Canada, where it opened eight kitchens late last year.

Wendys isnt the first fast food chain to explore so-called ghost kitchens, which have no storefront and only prepare food for delivery. In 2019, Chick-fil-A began offering delivery from a DoorDash Kitchen in Northern California.

Support Free Journalism

Consider supporting HuffPost starting at $2 to help us provide free, quality journalism that puts people first.

Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.

The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?

Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.

The stakes are high this year, and our 2024 coverage could use continued support. We hope you'll consider contributing to HuffPost once more.

Support HuffPost