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Kroger Extends Experiments with Ghost Kitchens

02/27/2022

The Kroger Company has opened a Kitchen United Mix unit in a Houston store.  Customers can order online or use a kiosk.  Options for delivery include in-store collection or third party home delivery.  The Houston location offers menus from fifteen local and national chains with the ability to mix and match.

 

Laura Gump, President of the Kroger Houston Division stated, "we are thrilled and proud to be the first Kroger location in Texas to launch this exciting and innovative partnership".  She added, "we are able to offer a fresh and tasty selection paired with friendly service emphasizing how we continue to advance our “Fresh for Everyone" concept.

 

It remains to be seen whether the installation of ghost kitchens adds to the sales and operating margins of stores.  There is a distinct possibility that offering service from ghost kitchens may cannibalize sales of deli items, salads and prepared foods. Kroger is attempting to build sales for their house brands of meal kits that may be adversely impacted by an in-store ghost kitchen.