Delivery-only brands cooking
During pandemic, more restaurant chains try out concept
Delivery-only brands — cooked in another brand’s kitchen and often delivered by third parties like Uber Eats — were proliferating even before the pandemic. They’re an inexpensive way for restaurants to try a new concept or fill a need in the community; a burger place might try making tacos under a different name, for example.
But over the past year, delivery-only brands have had explosive growth as the pandemic made delivery a more popular option. Big restaurant chains are now joining the fray, hoping to win new customers as traffic in their dining rooms dwindles.
Applebee’s is introducing Cosmic Wings, a delivery-only brand that specializes in chicken wings and Cheetos-flavored dipping sauce. Uber Eats will deliver the brand from 1,300 Applebee’s kitchens.
It’s joining a crowded market. Denny’s is rolling out two virtual brands — The Burger Den and The Meltdown — in the first half of this year. Chuck E. Cheese started delivery-only Pasqually’s Pizza and Wings last March. In the past few months, Chili’s debuted It’s Just Wings, TGI Fridays cooked up Conviction Chicken and Carrabba’s Italian Grill began delivering Tender Shack chicken sandwiches.
Celebrities are even getting in on the trend. Tyga Bites, a chicken nugget brand from rapper Tyga, and
Mariah’s Cookies, backed by singer Mariah Carey, are among the brands offered by Virtual Dining Concepts, a new company that sets up delivery-only brands in restaurant kitchens.
Uber Eats says it has more than 10,000 delivery-only restaurants on its platform, up from 3,000 in 2019. More than half of that growth has come from national chains, the company said. Grubhub and DoorDash won’t say how many delivery-only brands are on their platforms.
Scott Gladstone, Applebee’s vice president of strategy and development, said making Cosmic Wings its own brand lets Applebee’s target customers it might not reach with its regular menu, where wings are one of nearly a dozen appetizers.
“This gives it the best chance to stand out on its own,” Gladstone said.
NPD Group, which tracks U.S. restaurant sales, says delivery now makes up 11% of restaurant sales, up 86% since the pandemic began.
In some cases, deliveryonly brands have become big businesses of their own. Brinker International, which owns Chili’s, said that It’s Just Wings is on track to bring in $150 million in annual sales.
Rick Camac, the dean of restaurant and hospitality management at the Institute of Culinary Education in New York, thinks demand for delivery only will grow. More restaurants now offer it, packaging has gotten better and delivery companies are getting faster, he said.
“Our habits have changed, and I don’t think they are going back very easily or quickly,” he said.
There has been some blow-back on social media when customers find out that the place they thought was a new local restaurant was actually a big chain, but some customers don’t mind.
Mikelya Fournier, a smallbusiness owner in Leesburg, Ga., was excited to see a new restaurant — It’s Just Wings — on DoorDash one night. She dug around and discovered it was made by Chili’s. But she likes the food and she’s happy to have another delivery option.
“Food deserts are rampant in my area, so having a bigger chain come in and fill a need is amazing,” Fournier said.
“I don’t care who owns it,” she said.