Question
hi can someone please help me with this assignment. its only 2 questions but it must be 1000 words only no more than that to
hi can someone please help me with this assignment. its only 2 questions but it must be 1000 words only no more than that to answer these 2 questions. Thank you so much in advance!
Your assignment should be a maximum of1,000 words(plus any references). The formatting allowed is as follows:
1. CONTENT - Read the case and answer thetwo (2)questions. Number each question. Answer both questions separately in as much detail as possible. Extensive use and visible reference to course theoretical content and case examples are expected and necessary for a satisfactory grade. For example, students must includeall case examplesthey can find. An introduction and conclusion, however, are not required in this assignment.
The Rise of the Ghost Kitchen
Food delivery apps like Uber Eats, DoorDash and Grubhub are starting to reshape theAmerican food industry. As more peopleorder food to eat at home, and as delivery becomes faster and more convenient, the apps are changing the very essence of what it means to operate a restaurant.
No longer must restaurateurs rent space for a dining room. All they need is a kitchen or even just part of one. They can then hang a sign inside a meal-delivery app and market their food to the app's customers, without the hassle and expense of hiring waiters or paying for furniture and tablecloths. Diners who order from the apps may have no idea that the restaurant doesn't physically exist.
The shift has popularized two types of digital culinary establishments. One is "virtual restaurants," which are attached to real-life restaurants like but make different cuisines specifically for the delivery apps. The other is "ghost kitchens," which have no retail presence and essentially serve as a meal preparation hub for delivery orders.
Many of the delivery-only operations are in the early growth stage, but their effect may be far-reaching, potentially accelerating people's turn toward order-in food over restaurant visits and preparing home-cooked meals. Uber and other companies are driving the change. Since 2017, the ride-hailing company has helped start 4,000 virtual restaurants.
Since the pandemic began many restaurants have pivoted to providing takeout and delivery. It's a move that shows no signs of diminishing, even as they reopen for dining in one form or another. To accommodate this increased demand they are depending more and more on various types of off-premises kitchens.
Several companies are counting on the continued growth in the ghost kitchen trend. Their inventory is so-called ghost kitchens off-site meal-preparation facilities that are untethered from physical restaurants. They predate the virus but are multiplying now and taking many new forms.
Ghost kitchens allow restaurants to outsource the making of their takeout and delivery meals without cannibalizing the stoves, walk-ins and prep areas needed to serve seated diners outdoors or in. With national reach, they're also promising to expand a restaurant's footprint and brand recognition beyond the immediate neighborhood. [i]
Reef Kitchens is one of these. It was started in June 2019 in Miami, using parking lots and garages. Today it has some 4,500 parking sites across the country where it is installing mobile pods roughly the size of shipping containers that it calls kitchen vessels. The same space might house cooks preparing delivery orders from several restaurants, whether the food is Indian, Mexican, Italian or burgers.
Reef has three modular kitchens up and running in New York City. It expects to more than double that by the end of the year and hopes to get its nationwide total to 300.
When a customer orders online through the website of a Reef Kitchens client or one of the delivery apps like UberEats or Postmates, the information goes to Reef, but the customer never interacts directly with Reef (though the service is adding pickup at some of its locations). The company started before the virus hit, but Carl Segal, the chief operating officer, said that what it is doing feels more urgent now. For a restaurateur, establishing a second kitchen would be expensive given the costs of rent, construction, utilities and staffing, but with Reef, the restaurant has no upfront expenses.
"It doesn't cost them anything," Mr. Segal said. "We enter into a partnership with them, we keep the revenue and pay them a royalty percentage every month."[ii]
One of the main drivers of the growth of the ghost kitchen market is the changing cost structures of the foodservice environment. Ghost kitchens push restaurant cost structures toward delivery rather than in-person dining, and the reduction of employees that comes with a delivery-focused model can significantly bring down rent and staffing costs for restaurants and grow thin margins, he said.
For example, 60% of the cost of a Starbucks latte represents the cost of rent and staffing according to Euromonitor, which cited data from Financial Times.As delivery becomes less expensive and ghost kitchens grow and become more centralized, reducing food delivery times in the process, restaurants could find financial gains in optimizing their business for off-premise rather than dine-in experience. [iii]
The ghost kitchen concept is establishing itself in the Canadian restaurant industry as well. Joey Restaurants opened a ghost kitchen at Kwantlen Polytechnic University in Surrey, B.C., on May 14 and another in a stationary food truck in Brampton, Ont., on May 21. It did so partly to provide jobs to staff who could no longer work as servers in its dining rooms, as well as create new jobs, said Rupert Martin, vice-president of culinary. Ghost kitchens offer a quick, cost-effective method, Martin said, noting brick-and-mortar restaurants are very expensive to open and can take months, whereas ghost kitchens can be opened in weeks.
Before the coronavirus, the off-premises channel accounted for less than 10 per cent of the commercial restaurant industry's revenue. It is predicted it to make up close to 20 per cent of a full-service restaurant operator's business once the pandemic ends.[iv]
Questions: (Total marks: 50)
1. You are the new owner of a ghost kitchen. With reference to the Classical and Behavioral schools of management thought, discuss the approach you would adopt for managing your employees. Use relevant course theory and case examples to support your recommendation/recommendations. (30 mark
2.Describe how the ghost kitchen reflects the four defining characteristics of an organization. (20 marks)
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