- Will reach Millions of more potential customers
- Initial launch of Internet-Based Meal Plan in 2 key strategic locations
- Orders fulfilled within a 250 miles radius
- Plans call for the opening of 30+ more Ghost Kitchens
Today, the Muscle Maker Grill (NASDAQ: GRIL) announced that it has signed an agreement with Happy Meal Prep to roll out the company’s meal plan service on a much larger scale. This decision will allow MMG to reach millions of potential new customers. CEO Mike Roper, who earlier in the year made a strategic move to focus on growth through opening “Ghost Kitchens”, is now taking things up a notch by focusing on the internet based meal plan restaurant segment. MMG will now be able to offer his current and future customers the ability to continue their healthy eating habits through their new online platform.
Although each restaurant location has the capability to be a fulfillment center for the internet-based meal plan orders, the company plans to launch its first meal plan locations out of their Fort Sill, Oklahoma military base, and Midtown NYC locations. MMG’s business model attempts to position themselves around military bases, college campuses and as well as in densely populated areas. Opening a meal plan delivery program in each style of restaurant will quickly generate valuable statistics allowing management to strategize for future stores.
Each location, who will process all internet meal plan orders within a 250-mile radius, allows a reach of millions of more customers and will be cooked, packaged, and shipped directly from the restaurant ensuring fresh healthy meals delivered right to one’s door.
Choosing Happy Meal Prep
Muscle Maker Grill’s decision to use Happy Meal Prep was a nice move. The software company specializes in meal prep order management software and has proven to be a leader in the meal prep space. In 2020 alone, Happy Meal Prep’s customer base has grown over 8000%, expanded into 7 countries, and now services hundreds of clients subscribed to their white-label software platforms.
Happy Meal Prep, who works with some of the biggest names in the food industry, currently processes hundreds of thousands of meals monthly and should have no problem handling order fulfillment for Muscle Maker Grill. Another key aspect is clients typically see a 3x improvement in conversion rate, a $20 increase in average order value, and a 30% decrease in time spent on routine tasks.
Muscle Maker Grill Also Focused on the Growth of Their Ghost Kitchen Concept
Muscle Maker Grill, who has a commitment to opening 10 new ghost kitchens has developed a plan which currently calls for an additional 30+ ghost kitchens across multiple geographic markets according to their October shareholder update. The newly developed strategy tagged ‘Ghost Kitchens” is a new Meal Plan concept that will allow guests to place their orders through third-party delivery platforms providing ease of ordering and the option for contactless delivery. Ordering platforms include DoorDash, GrubHub, UberEats, Postmates, ChowNow, and Caviar. As the demand for delivery increases due to social distancing due to COVID-19, many restaurant concepts are looking toward ghost kitchens to expand quickly while meeting the growing need for fast options.
Low build-out costs, reduced overhead, and waste, and the ability to expand quickly are what make delivery-only ghost kitchens attractive to restaurant brands. Concepts can enter a new market rapidly while growing their brand recognition and affinity. The warehouse-style kitchens are efficient in their operational production and promote sustainability and corporate responsibility. Muscle Maker, Inc will be operating three distinct concepts out of one ghost kitchen, further optimizing the low build-out costs of each kitchen. In example, each concept can have its own separate phone app to order food, while the consumer is unaware that the food is being generated from the same kitchen. On the restaurant side, 80-90% of the food overlaps all 3 concepts and therefore making it easy to apply just a few additional ingredients to make each concept work. Muscle Maker Grill is currently operating three (Muscle Maker Grill, Healthy Joe’s and Meal Plans AF), but could expand to as many as 6. The customer wants variety but the business model demands margins. By sharing space and ingredients GRIL can achieve economies of scale.
Muscle Maker Grill is reshaping the restaurant business to operate in a pandemic or post-pandemic environment. It’s growing multiple verticals of the business simultaneously. While the stock price may not yet reflect it, today’s news should energize sales and future numbers, while putting their meal plan delivery arm of the business on steroids. With plans of opening 30+ more ghost kitchens and utilizing an online platform software solution to order products with a 250 miles radius from each participating store location, it’s easy to see that future revenue, quarter over quarter, and year over year will show consistent increases. They have excellent cost controls and appear to be optimizing expenses through low buildouts, limiting staff, and maximizing kitchen throughput by servicing up to 6 different meal concepts. A Covid vaccine from Pfizer (NYSE: PFE) seems possible and may lead to making dining popular again, but people are genuinely busy and want healthy fast food options, take out, and or delivery. Regardless of the COVID-19 treatment or vaccine outcomes, it could be years before people truly feel comfortable dining out in public, and when that time arrives, GRIL’s savvy management team will be ready to flex their muscles and steer the ship full speed ahead.
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