Virtual brands is a developing trend that has gained momentum since the pandemic impacted the restaurant business more than 18 months ago. Defined as delivery-only food offerings prepared in unused restaurant-kitchen space, virtual brands relies on digital-ordering platforms and third-party delivery partners.
Just how large this segment is today is unclear. However, ghost kitchens—sometimes used synonymously with virtual brands—could become a $1 trillion global market by 2030, according to a Euromonitor International projection published in The Washington Post last year.
Today, this expanding practice is reaping incremental sales for operators large and small. Denny’s Corp. already has The Burger Den, its first virtual concept introduced earlier this year, operating in more than 1,100 locations. Also embracing the trend are a plethora of independent operators and multi-unit restaurant groups.
The wide consumer acceptance of mobile-ordering apps, the versatility of labor-saving, ready-to-use food products for creating on-trend menus and the low cost of investment for virtual brands all factor into making this an increasingly attractive idea for operators.
Driving incremental sales
Flexibility is one of the strong attractions of these digital-driven, delivery-only ventures. For example, a restaurant may launch a virtual brand to reap incremental sales in slower business dayparts. Denny’s says that 70% of The Burger Den’s transactions occur in the dinner and late-night dayparts. Additionally, launching a virtual brand enables a restaurant to exploit an underserved niche for certain items in the marketplace or showcase menu items that it does well.
Delivery-only ventures have given Hooters, the Atlanta-based sports-bar chain, a welcome boost. The virtual Hootie’s Burger Bar brand arose from a suggestion by a Hooters’ delivery service partner (DSP) prior to the advent of the pandemic. “They came to us and said, ‘Hey, we’d love to do this idea with you, based on our research,’” says Sal Melilli, CEO of Hooters, speaking on the Nation’s Restaurant News Extra Helping podcast. “And they came up with the idea about the need for burgers.”
Additional spinoffs followed—Hootie’s Bait and Tackle, which features the chain’s seafood items, and Hootie’s Chicken Tenders. “They are all within the same kitchen and the same SKUs,” says Melilli. “It has been a really nice marketing piece to partner with the DSPs to expand into these.”
Bringing bold flavor home
Of course, delivery and takeout were already growing briskly before 2020. However, that is the year millions of new mobile-app users got hooked on the convenience and variety of digital-driven delivery. Now, even as they flock back to restaurants for the full dine-in experience, they still demand quick, easy, craveable food at their doorsteps when the mood strikes. Thus the moment is ripe for virtual brand brainstorms.
Exciting, bold, global flavors play a critical role in this discussion. Consumers are now eagerly resuming the flavor explorations interrupted by the pandemic, both through delivery orders and by dining on the premises. Restaurant operators tapping the virtual brand space should not stint on flavor excitement. “Global flavors were in high demand prior to COVID and they will continue to be as we resume some sense of normalcy,” says Chef Greg Ische of Boar’s Head Brand®. He notes that consumers expect considerably more now than they did during the days of dining restrictions, when familiar, comforting fare like rotisserie chicken and pizza were the mainstays.
The Boar’s Head Bold® line helps operators satisfy the demand for premium products and global flavors. For example, Boar’s Head Bold® Ichiban Teriyaki-Style® Chicken Breast is ready to serve just as it is or featured in recipes, with its savory teriyaki-style glaze, notes of ginger and garlic and a hint of brown sugar.
Another distinctive example, Boar’s Head Bold® Aloha Sunshine® Pineapple Roasted Turkey Breast, is coated with pineapple and hibiscus and lightly charred for a sweet, savory traditional luau flavor.
Creating riffs
While featuring boldly flavored menu items is key to driving sales, controlling costs is imperative in getting a virtual brand venture off the ground. Operators who reduce labor cost by replacing scratch cooking with convenient prepared foods will be in a good strategic position. The time and labor hours they save by using seasoned and fully cooked Boar’s Head products can be used to create new riffs on global recipes. These premium meats can be fabricated many ways—sliced, shaved, diced, cubed, chopped, pulled, shredded and cut into medallions—to fit a vast array of menu ideas. With them, operators are a step ahead in efficiency and consistency. They also reduce inventory, labor and space needs, all vital for virtual brand success.
For a sample of Boar’s Head® products, visit boarsheadfoodservice.com/takeflavorfurther. Find product information, menu inspiration and recipes at boarshead.com/products/bold.
