Mobile kitchens that cater solely to meals supply providers, like Uber Eats and DoorDash, sound like an amazing thought in concept, as devoted supply kitchens can push out meals quicker with out having to fret about passing meals alongside to servers. But a report from The Wall Street Journal particulars among the mishaps related to one trailer-bound ghost kitchen firm, Reef, which includes third-degree burns and regulatory violations.
Just this April, the WSJ experiences that one Reef kitchen in Houston, Texas skilled two fiery accidents in simply 4 months. One concerned a blast that erupted from the kitchen’s propane burners — and by a stroke of luck, the cook dinner got here out unscathed.
While the cook dinner escaped hurt — she occurred to open a fridge on the similar time that shielded her from the flames — it was the second such incident on the similar Houston trailer in 4 months. The first one injured a distinct cook dinner, as flames scorched her face and gave her third-degree burns on her arms that induced pores and skin to peel off her fingers, rendering her unable to work.
This mayhem will get rather less unsurprising whenever you notice that Reef truly didn’t begin out within the meals enterprise. According to the WSJ, Reef (previously ParkJockey) initially sought to rework parts of parking tons into trailer-filled parks that include totally different service areas. After receiving $1.2 billion in funding from SoftBank in 2018, it purchased out two car parking zone administration firms, changing into “the largest parking-lot network in North America.”
And though Reef is seemingly a car parking zone tycoon, it nonetheless has points securing a correct parking house to plant its trailers. The WSJ discovered that the corporate has to resort to renting parking tons for over 70 p.c of its kitchens.
Reef discovered it wasn’t in a position to put trailers on a lot of its tons, as some had enclosed garages, the place propane tanks and utility hookups aren’t allowed. Others had been owned by landlords who didn’t need meals vehicles, former workers stated.
In addition, some cities classify Reef’s trailers as meals vehicles, which means the corporate usually has to tow its trailers to commissaries to refill on water — typically shelling out $20,000 for towing in a single day, as famous by the WSJ. To complicate issues additional, the trailers aren’t made to be used on the street, probably straining propane strains and resulting in leaks. Reef has additionally been hit with numerous violations, together with some for working with out a allow and never towing trailers to devoted commissaries after use, resulting in the suspension of over 25 trailers since this summer season.
Despite all of those obtrusive points, the WSJ states that Reef’s meals income reached $12 million in September, 600 p.c greater than final yr. Wendy’s, Burger King, and Popeye’s have additionally reportedly sealed offers with Reef, which implies if you happen to get your meals delivered from a few of these places, you received’t even comprehend it got here from a trailer. According to the WSJ, Reef presently has round 350 cellular kitchens.
Reef does have some competitors, nevertheless, within the type of former Uber CEO Travis Kalanick’s CloudKitchens. Kalanick’s floating kitchen firm additionally appears to be experiencing operational difficulties however of a totally totally different breed. It reportedly suffers from the identical type of chaos that surrounded Uber beneath Kalanick’s lead, together with excessive turnover charges and an “aggressive internal culture.”
Whether you’ve by no means heard of ghost kitchens otherwise you stroll by one on daily basis, this WSJ report provides you an inside take a look at how the enterprise operates.
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