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Why Serious Cooks Are In Love With Frozen Food - WSJ
2 COMMENTS
By Sarah Karnasiewicz
Updated Feb. 1, 2019 1:13 p
cold_storage  frozen_foods 
february 2019 by jerryking
Ghost kitchens : the next disruption in the restaurant industry ?
8 Jan, 2018 | intotheminds | Posted By Pierre-Nicolas Schwab.

(1) https://www.restaurant-hospitality.com/operations/ubereats-nudges-operators-toward-virtual-restaurants
(2) https://www.theguardian.com/business/2017/oct/28/deliveroo-dark-kitchens-pop-up-feeding-the-city-london#img-3

ghost kitchen make perfect economic sense : margins are thin in the restaurant industry, driven by high employees-related costs, rent, expensive equipment and variability in demand. Setting up a restaurant is a bet with a 5 to 20-year time horizon depending on myriad factors : your positioning, the location, and many exogenous factors out of your control. Eliminating all those risks seems like a logical move :

how to make a restaurant less location-dependent ?
how to adapt quickly to demand ?
how to reduce fixed costs (renting and equipping a place) ?
The bright sides : 3 major advantages of ghost kitchens

**The 3 major advantages of ghost kitchens are their answers to the 3 problems listed above :

the restaurant is not location-dependant anymore. If there is an event likely to generate massive flow of potential customers, you can move
ghost kitchens can adapt quickly to demand : the standardized kitchen unit just has to be multipled, which is not possible with street food vans unless you own several of them (which brings us to the 3rd advantage).
ghost kitchens, because they are rented from online platforms like Uber Eats and Deliveroo, transfom fixed costs into variable ones. This is great to test your idea and is a cheap way to do market research and test traction on a market.

** The dark sides of Uber’s and Deliveroo’s ghost kitchens
1. Why would one still rent a place to operate a restaurant ?
Good question indeed. If all hurdles and risks of operating a brick-and-mortar restaurant can be removed, why would you still want to rent a place (fixed costs), buy the equipment (fixed costs), hire employees (fixed costs) and wait on patrons to come in (variable revenues) ? If a platform like Uber or Deliveroo can provide you with customers’ orders, the need to have a brick-and-mortar place would vanish.
But if every single restaurant owner adopts that posture, how will city centers look like on the long run ?

2. Dependence towards platforms
What happened with the hospitality sector may well happen on the middle-term in the restaurant industry too. Uber eats, Deliveroo have disrupted the way we consume food. This is a new societal change that is most to be felt in Europe (urban Americans use already to get food delivered to their homes, most restaurants in US cities proposing at home delivery) : it has become easier than ever to get food delivered at home.
If enough restaurant owners make a significant percentage of their revenues through those platforms, they will eventually become dependent on them and will struggle like hotels are now struggling with Booking.com. Using platforms is a wise strategy to grow revenues but it can also become a very dangerous one if your dependence to them increases.
beyond_your_control  commercial_kitchens  disruption  fixed_costs  food_delivery  kitchens  platforms  restaurants  variable_costs  Deliveroo  Uber  asset-light  event-driven  experimentation  test_marketing  pop-ups  cold_storage  on-demand  dark_side  virtual_restaurants  bricks-and-mortar 
january 2019 by jerryking
On-Demand Warehouse Space Gains Traction in Tight Real-Estate Market - WSJ
By Jennifer Smith
Dec. 23, 2018

QUOTABLE
You don’t always want to build the church for Easter. —Justin Schuhardt, senior director of operations for Walmart e-commerce, on on-demand warehousing.
Flexe  logistics  on-demand  retailers  Second_Closet  Wal-Mart  warehouses  nimbleness  cold_storage 
december 2018 by jerryking
What the “cold economy” means for a warming world | Ensia
@Nate_Berg
Cities, science and design writer
REPUBLISH
July 22, 2015 — Editor’s note: This story is co-published with GreenBiz,
cold_storage 
december 2018 by jerryking
Professor Toby Peters | Cool Logistics Global
Professor Toby Peters was recently appointed as Professor, Cold Economy at the University of Birmingham and Visiting Professor in Transformational Innovation for Sustainability at Heriot-Watt University.
cold_storage 
december 2018 by jerryking
Cool Ways Of Keeping Things Cool People Fixing The World podcast
People Fixing The World « »
Cool Ways of Keeping Things Cool
16 weeks ago 23:18

A vast and expensive system with the sole purpose of keeping things cool exists across the developed world. This “cold chain” includes fridges in kitchens, refrigerated lorries and cold store warehouses for supermarket produce and medicines. It costs billions to run and has a big environmental cost. But in poorer countries, this cold chain is just in its infancy. People are dying as health clinics lack the fridges to keep vaccines safe. New cold chain technology is needed and two inventors think they’ve figured it out. World Hacks looks at their innovative ways of keeping things chilled. Presenter: Harriet Noble Reporter: Tom Colls
BBC  cold_storage  inventions  inventors  podcasts  developing_countries 
december 2018 by jerryking
Food Distributors Make Changes as Costs Bite
Nov. 23, 2018 | WSJ | By Heather Haddon.

Food distributors, the intermediaries between packaged-food makers and farmers on one side and restaurants and grocers on the other, are especially sensitive to cost pressures. Their operations are less automated than those of some other businesses, increasing their exposure to the worker shortages and rising wages that come with a tight labor market. Surging demand is also pushing up the cost of for-hire transportation.

To adapt to rising logistics and shipping expenses, distributors say they are shifting some deliveries to smaller trucks that don’t need full rig loads. They are also trying to pack trucks more efficiently and break down delivery routes to make them shorter. Some distributors are also turning to online brokers, like the Freight unit of Uber Technologies Inc., that use technology to match cargo with available trucks, a process some say is faster and more efficient.
foodservice  Sysco  streamlining  intermediaries  cold_storage 
november 2018 by jerryking
Walmart and Amazon in acquisition shopping spree | Financial Times
The move reflects the realities of the grocery business, analysts say. “In no sector is physical footprint more important than food,” says Charlie O’Shea from Moody’s. “Dairy has to be delivered quickly. Just like what Walmart did last year in buying Jet.com, Amazon recognises that it’s more effective to buy it than build it.” 

Amazon may use Whole Foods’ stores to beef up its offerings in ordering, pick-up and delivery, or use its distribution centres to deliver products for AmazonFresh trucks, says Mr Huang. “Building a cold supply chain with refrigerated trucks is not easy or cheap to do,” he says. 
Wal-Mart  Amazon  grocery  supermarkets  cold_storage 
november 2018 by jerryking
Cold storage: Planning for unpredictability
July 2, 2018 | - Modern Materials Handling| By Josh Bond, Senior Editor.
cold_storage  unpredictability 
november 2018 by jerryking
The rise of chef ‘supergroups’ means more creative and experimental kitchens across the country - The Globe and Mail
Behind the restaurant’s unassuming façade is a powerhouse of some of Canada’s most talented and successful restaurateurs. The team behind the Joe Beef empire, Frédéric Morin, David McMillan, Allison Cunningham, as well as Marc-Olivier Frappier and Vanya Filipovic (Mon Lapin, Vin Papillon), Chris Morgan and James Simpkins (Liverpool House) have teamed up with chef Derek Dammann (Maison Publique) to create a kind of culinary supergroup – the Traveling Wilburys of rotisserie chicken......Somewhat counterintuitively, then, comradery, and perhaps a survivors' bond over having made it in an industry known to chew cooks up and spit them out, is bringing chefs together. McKiernan is just one example of chefs partnering with their would-be competitors to open places where the whole is, hopefully, greater than the sum of its parts......
chefs  collaboration  restaurants  restauranteurs  kitchens  cold_storage  commercial_kitchens  experimentation 
november 2018 by jerryking
Cold calling - The Forecast 2018 - Magazine | Monocle
We seldom stop to think about how our food gets from its source to our plates but, when we do, we realise the mammoth effort involved. Luckily technology is revolutionising the industry and temperature-controlled cargo is going places like never before.
cold_storage  logistics  magazines 
november 2018 by jerryking
How Canada's Serruya Family Made Some $300 Million Off A Bunch Of Faded Food-Service Brands
Jun 19, 2016, 07:15pm
How Canada's Serruya Family Made Some $300 Million Off A Bunch Of Faded Food-Service Brands

Amy Feldman
Forbes Staff
ice_cream  private_equity  Toronto  franchising  cold_storage  brands  foodservice  Serruya 
october 2018 by jerryking
Inside FreshDirect’s Big Bet to Win the Home-Delivery Fight - WSJ
By Jennifer Smith
July 18, 2018 5:30 a.m

Designed to keep food fresh longer and move it faster, FreshDirect’s 400,000 square-foot distribution centre is the online grocer’s multimillion-dollar bet on the fastest-growing sector in the grocery business, home-delivery. FreshDirect pioneered the e-commerce home-delivery market, and now with Amazon and big grocery chains like Kroger Co. piling on investments, companies are jockeying for position in a business that some believe is the future of supermarket sales.....FreshDirect's trucks now provide next-day delivery to customers across the New York-New Jersey, Philadelphia and Washington, D.C., metropolitan areas, with plans to expand into Boston next. The private company says it generated between $600 million and $700 million in annual revenue in 2017.

It declined to disclose the cost of the new facility, which was financed with the help of a $189 million investment round in 2016 led by J.P. Morgan Asset Management, direct funding and incentives from state and local governments......Amazon, Target Corp. and other large companies have invested hundreds of millions of dollars to expand food delivery and build out their grocery e-commerce operations. Supermarket chain owner Koninklijke Ahold Delhaize NV’s Peapod unit, the longest-running online grocery service in the U.S., has expanded to 24 markets and is investing in technology to cut its handling and delivery costs.

Walmart Inc. said this month that Jet.com, the online retailer it bought two years ago, will open a fulfillment center in the Bronx this fall to help roll out same- and next-day grocery deliveries in New York City.

The grocers are trying to solve one of the toughest problems in home delivery: Getting food to doorsteps in the same condition consumers would expect if they went to the store themselves. Delivering perishables is trickier than dropping off paper towels or dogfood. Fruit bruises, meat spoils, eggs break. ........FreshDirect’s logistic hurdles start well before delivery. It must get products from its suppliers to the building, process the food, then pick, pack and ship orders before the quality degrades.

That is why the new distribution centre has 15 different temperature zones. Tomatoes do best at about 55 degrees, but “chicken and meat like it to be just at 32 degrees... it gives more of shelf life to it,"....Software determines the most efficient route for each order, and tells workers which items to pick.....A big part of the facility [distribution centre] is ripping out tons and tons of operating costs out of the business.....The stakes in getting the technology right are high. FreshDirect is competing with grocery chains that often fill online orders through their stores, using a mix of staff and third-party services like Instacart Inc. So-called click-and-collect services, where consumers swing by to pick up their own orders, tend to have better margins because the retailer isn’t paying for last-mile delivery.....Online-only operations with centralized warehouses tend to be more efficient than logistics run out of stores, because they use fewer workers and can position goods for faster fulfillment.
algorithms  Amazon  big_bets  cold_storage  distribution_centres  distribution  e-commerce  food  FreshDirect  grocery  home-delivery  infrastructure  Kroger  logistics  perishables  retailers  software  supermarkets  Target  Wal-Mart  warehouses  fulfillment  same-day  piling_on  last_mile 
july 2018 by jerryking
Produce or Else: Wal-Mart and Kroger Get Tough With Food Suppliers on Delays
Nov. 27, 2017 | WSJ | By Annie Gasparro, Heather Haddon and Sarah Nassauer

Grocers are giving food companies a tougher mandate: Ship on time, or pay the price.
Food retailers want their suppliers to resolve the persistent problem of delayed or incomplete deliveries, which they say costs them millions of dollars a year in lost sales and overtime pay.
Retailers used to give suppliers more leeway, since any number of factors—bad weather, a surge in demand, technology malfunctions—can foil deliveries of cereal, cheese, candy and other packaged goods from warehouses scattered around the country.
But now as traditional grocers battle Amazon.com<http://Amazon.com> Inc. and other online retailers that prioritize delivery speed, as well as price-cutting discounters, more are taking a strict line with suppliers, telling them on-time deliveries will translate directly into more sales and profits.
Delayed deliveries can leave holes on store shelves. Sales of some $75 billion a year are lost because products are out of stock or unsalable for other reasons, according to the Food Marketing Institute, a trade organization. That is about 10% of annual grocery sales industry-wide at a time when sales growth is hard to come by. “It’s a massive opportunity from a financial and customer standpoint,” .....The country’s biggest grocers are leading the charge. Kroger is fining suppliers $500 for every order that is more than two days late to any of its 42 warehouses, and Wal-Mart Stores Inc. is charging suppliers monthly fines of 3% for deliveries that don’t arrive exactly on time, according to the retailers. They began issuing the fines in August........Wal-Mart has signaled it could do more than levy fines if problems persist. Charles Redfield, executive vice president of food for Wal-Mart U.S., told suppliers they could also lose shelf space if they don’t solve their delivery issues, according to people in attendance at a supplier meeting earlier this year. Retailers can threaten suppliers with loss of promotional space in stores, analysts said.....Packaged-goods companies are straining to keep up with the demands and remain in the good graces of retailers. They need GPS trackers and software to adjust routes in real time. Filling full orders fast is also challenging, since many manufacturers house items all over the country. That is particularly true for refrigerated items needing costly cold storage—which has fueled investments in more fulfillment centers......“Shipping complete orders on time is a completely reasonable request but turns out it’s harder than it sounds.”...
Wal-Mart  Kroger  grocery  supermarkets  supply_chains  retailers  delays  food  shipping  Amazon  cold_storage  penalties  delivery_times  fulfillment  CPG  Kraft_Heinz  P&G  on-time  shelf_space  supply_chain_squeeze 
november 2017 by jerryking
Amazon Plans to Launch Prime Now Service in Canada This Year - WSJ
By David George-Cosh
Updated Aug. 31, 2017
Amazon.com Inc. AMZN 1.34% is working on plans to roll out its one- and two-hour membership delivery service into Canada later this year, a move that marks a broader push into the country by the Seattle-based retailer, according to people familiar with the matter.

Amazon could begin offering its Prime Now service in Vancouver and Toronto in November and January, respectively, under a pilot program that will deliver groceries and other items within a two-hour window, ......Grocery spending in Canada is approximately worth C$103 billion, but just 1.9% of that is spent online, according to Nielsen Co. Online grocery shopping is expected to grow to 5.3% of total spending by 2020, accounting for C$6 billion in sales, Nielsen said.

Any further entry by Amazon into the Canadian grocery-delivery space is expected to weigh on companies such as Loblaw Cos. Ltd. and Empire Co. Ltd. as well as the domestic arms of stores such as Wal-Mart Stores Inc. and Costco Wholesale Corp. , which all have explored shipping online grocery orders to Canadian doorsteps.......Amazon’s Fresh grocery delivery service, which costs U.S. customers $14.99 on top of annual Prime membership, is not yet available in Canada......it’s unlikely that Amazon will be able to create a comparable temperature-reliant supply chain in Canada for some time. “Amazon is not able to match the Canadian grocers in terms of procurement scale,”
Amazon  Canada  AmazonFresh  Amazon_Prime  pilot_programs  memberships  subscriptions  retailers  cold_storage  same-day 
september 2017 by jerryking
Canada’s first family of freeze buys Cold Stone
Aug. 20 2013| The Globe and Mail | GRANT ROBERTSON.

The Serruyas, who also own the Swensen’s premium ice cream brand, are betting the ice cream market can survive the competition. They aim to push further into niche products for Cold Stone, building on licensing agreements forged in recent years, including coffee creamers sold in U.S. supermarkets and flavours licensed to Jelly Belly candies. Cold Stone Creamery operates in more than 1,500 outlets around the world, including locations in China, Indonesia, Turkey and Brazil.
ice_cream  private_equity  Toronto  franchising  cold_storage  Serruya 
september 2013 by jerryking
Walmart Strains to Keep Grocery Aisles Stocked - NYTimes.com
By STEPHANIE CLIFFORD
Published: April 3, 2013

Walmart, the nation’s largest retailer and grocer, has cut so many employees that it no longer has enough workers to stock its shelves properly, according to some employees and industry analysts. Internal notes from a March meeting of top Walmart managers show the company grappling with low customer confidence in its produce and poor quality. “Lose Trust,” reads one note, “Don’t have items they are looking for — can’t find it.”...The retailer’s customers have complained about the quality and freshness in the produce aisle....Walmart charged into the grocery market about two decades ago, realizing that frequent trips by grocery shoppers could help improve traffic. Grocery made up 55 percent of Walmart United States sales in 2012, which was flat from the previous year. The company’s grocery prices are usually about 15 percent below competitors’, according to Supermarket News. ... Safeway customers are 71 percent confident in its fresh produce, the notes said, while Walmart customers are 48 percent confident in Walmart’s produce. In the interview, Mr. Sinclair of Walmart said he did not know where that data came from, but that “we believe that we can improve the perception of quality of produce for Walmart customers.”

The notes highlighted some stocking problems: “1 hour out of Refrigeration = 1 day less product life,” they read, adding that Walmart will change shift responsibilities so fresh food is not stocked overnight and goes out at 10 a.m., not 7 a.m. ...The company just introduced an inventory management system for produce departments nationwide that will track how many days an item has been in transit, how much shelf life remains, and what orders the company should place to meet demand. With delicate items like raspberries, “you almost need to know by the hour how long the product has been through our system,” which was hard to track when 42 distribution centers buying from hundreds of different vendors were sending around products,
cold_storage  Wal-Mart  fresh_produce  customer_experience  grocery  supermarkets  staffing  inventories  consumer_confidence  perishables  quality  tracking  shelf_life  merchandising  distribution_centres  refrigeration 
april 2013 by jerryking
Economist Ricardo Hausmann Says U.S. Should Reinvent Manufacturing
January 4, 2013 | MIT Technology Review | By Antonio Regalado.

[ less keen on setting up entire industries at home and instead try to insert themselves into global supply chains. Sometimes this means changing, not just exploiting, their comparative advantage.]

Using complexity theory and trade data, Hausmann looks at what a country is good at making and predicts what types of more valuable items it could produce next.

That sounds plain enough, but the results of Hausmann’s analyses are often surprising. A country with a competitive garment industry might want to move into electronics assembly—both need an industrial zone with quality electrical power and good logistics. A country that exports flowers may find it has the expertise in cold-storage logistics necessary to spark an export boom in fresh produce.
economists  manufacturers  reinvention  competitiveness_of_nations  industrial_zones  competitive_advantage  economies_of_scope  linkages  policymaking  kaleidoscopic  comparative_advantage  supply_chains  value_chains  capabilities  cold_storage 
march 2013 by jerryking
Legislative Assembly of Ontario | Committees | Committee Transcripts | Standing Committee on Government Agencies - - Ontario Food Terminal Board
Committee Transcripts: Standing Committee on Government Agencies - November 24, 1993 - Ontario Food Terminal Board
Ontario Food Terminal Board
farmers'_markets  Ontario  cold_storage  OFT 
january 2012 by jerryking
The Ontario Food Terminal: A unique service for the food industry
The Ontario Food Terminal: A unique service for the food industry
Anonymous. Canadian Grocer118. 10 (Dec 2004/Jan 2005): 40A,40B,40C,40D
food  infrastructure  cold_storage  Toronto  farmers'_markets  supply_chains  OFT  ProQuest 
december 2011 by jerryking
Inside The Ontario Food Terminal
October 7, 2007 | BolgTO | Tim

The Ontario Food Terminal (OFT) is the largest wholesale fruit and produce distribution centre in Canada, and the third largest in North America after LA and Chicago. It sits on a 40 acre lot at the foot of Etobicoke. Nestled next to the Gardiner Expressway, the OFT is in full view to thousands of Torontonians every day on their way in and out of the city but few have ever entered its doors. It's not open to the public. It's a strictly wholesale operation and a vendor permit and $155 fee (paid every two years) is required for admission.
food  food_crops  distribution  supply_chains  cold_storage  blogs  Toronto  farmers'_markets  OFT 
november 2011 by jerryking

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