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AUGUST 2020

Small Cost & Big Return

Virtual Kitchen TOOLKIT Innovative tools and resources to help you capture new revenue today and as conditions change.


Adversity came to town – COVID-19 – and has made it clear that there is not a silver bullet to getting through this pandemic. In order to thrive, or even survive, restaurant operators need to put careful thought into their strategy and be ready to pivot at a moment's notice, adjusting as circumstances change. So far, we have seen the rise of patio seating, the reconfiguration of indoor dining, and the switch to curbside and takeout as just a few examples. Yet, expanding outdoor capacity and increasing takeout business may not be enough – embracing new opportunities for revenue, such as a new business model, could be a key to success. Early planning, preparation, and a fierce determination are vital in order to make your brand and flavors the most sought-after meals in your area!

Sysco understands that this pandemic has caused havoc on the foodservice industry and to combat that, we have thoughtfully put together the following recommendations and resources to help you establish additional revenue streams, such as Virtual Kitchens, Kitchen2Kitchen, Food Trucks, and Family Meal Programs. As you identify your direction and proceed forward, we always encourage that you to put the safety and comfort of your guests and employees first.

Please rev iew f ederal, state and local regulations to ensure y our compliance with the law. For saf ety and sanitation, stay up to date and check the latest inf ormation on CDC.gov . Consult y our legal adv isors regarding any risks associated with starting a new v enture or implementin g any recommendations.

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VIRTUAL KITCHEN 101 • • • • •

What Is a Virtual Kitchen Who Uses Virtual Kitchens Benefits of a Virtual Kitchen Virtual Kitchen 3rd-Party Setup Options Steps to utilize your restaurant for Virtual Kitchen

PREPARATION & SAFETY • • • • • • •

Understand Local Ordinances and Guidelines Location, Location, Location Determine Delivery Method Consider Your Menu Experiment with Different Menu Concepts Incorporate Delivery Costs into Your Virtual Kitchen Menu Safety & Sanitation

STAFFING & TRAINING • • • • •

Staff Your Kitchen Thoughtfully Schedule Staff Keep an Eye on the Inventory Marketing Your Virtual Kitchen Tune Into the Data

PRODUCTS & Supplies • • • • •

Kitchen Equipment Safety & Sanitation Social Distancing Single-Use Products Food Inspiration

MENUS & MARKETING • • •

Menu Engineering Streamline Your Menu for Success! Social Media Messaging

iCARE SERVICE PARTNERSHIPS • • • • •

Uber Eats Ordereze Ready Popmenu Cheddrsuite

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Virtual Kitchens, regardless of what you call them, are not new

– they were on the rise well before the COVID-19. At present, with restrictions on capacity and customer hesitation to dine-in at restaurants, it has forced operators to shift to delivery and takeout. The rise of the food delivery/curbside pickup demand has bolstered the Virtual Kitchen model amidst the pandemic, with increased popularity due to the profit margins and lower cost structure. A Virtual Kitchen is referred to in many terms, including Delivery-Only Restaurant, Online Only Restaurant, Cloud Kitchen, or Ghost Kitchen. Regardless of the name, these kitchens serve customers solely through online and phone orders without a brick and mortar concept, signage, dining room, or décor. Requirements are simply a kitchen, cooks, and delivery service or drivers.

There are a couple models for creating a Virtual Kitchen concept: • Leverage your existing restaurant. • Deliver the food yourself, eliminating the 3rd party delivery service fees. • Utilize 3rd party delivery to obtain increased visibility and avoid hiring drivers. • Rent space and labor from other existing brick and mortar restaurants to expand your footprint and minimize setup logistics. Sysco Concierge Services can also help you customize any of the materials in this toolkit. Contact us at 1-800-380-6348 or info@syscomarketingservices.com

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VIRTUAL KITCHEN TOOLKIT


➢ Traditional Brick and Mortar Restaurant Owner Expanding your brand by leveraging your existing establishment allows you to get more sales and utilize the ingredients you have already purchased to produce existing menu items or create new specialties, all geared towards delivery only customers. This allows you to expand and maximize your existing cost structure. Capitalizing on your success, you may consider expanding to new markets with true Virtual Kitchens.

➢ Food Truck Owner One of the benefits of owning a food truck is having all the equipment in one place and you can test out different locations. If you have a well-established brand, and demand is there, a Virtual Kitchen may be the next step to scale your brand and branch into different markets.

➢ New To the Food Service Industry If you are looking to enter the food service industry, a Virtual Kitchen is a great low-cost option, affording you the ability to test multiple cuisine styles and benefit from the lower upfront costs of a traditional brick and mortar concept. This is the lowest risk model and a way to get started.

➢ Savvy Restaurant Owner with Multiple Locations For larger scale restaurants, this model is ideal for scaling your existing brand, much like PF Chang’s did with their To Go only pop-up restaurants. In this model, a great 3rd party consulting company who specializes in this may be beneficial to establishing your Virtual Kitchen.

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Lower Overhead Cost A virtual kitchen eliminates the need for a costly dining room, store front, and décor by reducing your overhead to the bare minimum required to do business. In some circumstances, you can even operate without a telephone and delivery drivers. Factoring these expenses out can greatly improve your bottom line.

Less Risk There is always some risk in all business endeavors, however, a Virtual Kitchen has a lower risk versus establishing a traditional brick and mortar restaurant. The simplified nature of virtual reduces your initial expenses – square footage, furniture, utilities, staff – so that you don’t invest as heavily upfront before making money.

Easier to Expand to New Markets Expanding to new markets can be expensive for traditional restaurants, as opening additional brick and mortar location comes with all the related costs and risks. With a virtual kitchen it’s much easier to branch out with minimized time and effort or cost commitment.

No Dependency On Table Turnover Your traditional restaurant typically has two options when it comes to making a profit: 1) Increased food prices with decreased table turnover, or 2) decreased food prices with increased table turnover. While some restaurants are successful under the first option, it’s more common for restaurants to rely on the second option of increased turnover to make money. With a virtual kitchen, the dependency on turnover is eliminated as there are no customers dining in.

Lower Labor Costs Labor is the biggest expense a restaurant incurs. A traditional restaurant requires hosts/hostesses, runners, wait staff, food prep, and more. Virtual Kitchens, however, require minimal staff members (35) and generally all are chefs.

Things to consider: • Factor delivery costs into your menu pricing

• Give careful consideration to your layout and equipment • Determine if kitchen sharing is a better option • Marketing should not be different from a traditional restaurant

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Minimize Cost and Maximize Profits: How To Set Up Additional Kitchen Space For Delivery Only

Whether you are a new restaurateur or a seasoned chef, in addition to Sysco, there are resources available to assist you with establishing your Virtual Kitchen:

CloudKitchens Is one of the fastest growing investors in Virtual Kitchen startup businesses. CloudKitchens offers fully-equipped kitchens (branded as “smart kitchens”) for the delivery-only model. They can be a useful resource when setting up your Virtual Kitchen.

Kitchen United Kitchen United provides a turn-key, light capital model delivering a complete, code safe kitchen, that includes appliances and cooking implements, making it easy to start up your Virtual Kitchen.

DoorDash Kitchens DoorDash’s model is focused on catering to high-delivery areas for established brands. DoorDash Kitchens is still in the experimental phase, has a limited coverage area, and does charge a monthly fee for their expertise. While this is another great option for breaking into the virtual arena, be sure to check where they are operating.

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✓ Understand Local Ordinances and Guidelines ✓ Location, Location, Location ✓ Determine Delivery Location ✓ Consider Your Menu ✓ Determine Your Delivery Method

✓ Experiment With Different Menu Concepts ✓ Safety & Sanitation ✓ Staff Your Kitchen ✓ Thoughtfully Schedule Staff ✓ Keep an Eye on the Inventory ✓ Marketing Your Virtual Kitchen ✓ Tune Into the Data

Sysco Concierge Services can also help you customize any of the materials in this toolkit. Contact us at 1-800-380-6348 or info@syscomarketingservices.com

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VIRTUAL KITCHEN TOOLKIT


Understand Local Ordinances and Guidelines Determine if you will need any permits and confirm your local regulations before setting up your Virtual Kitchen.

Location, Location, Location If you are not utilizing your traditional brick and mortar location, the benefit of a virtual kitchen is that it can be located anywhere, saving costs on real estate. All you need is adequate space for kitchen space and a location that expands your reach. Remember if you go into a new geography, you will need to build your brand in that new market.

Determine Delivery Method Given this is a Virtual Kitchen concept, the delivery method you implement will be one of the most important considerations. Determining whether to have your own drivers or a third-party delivery partner requires that you to understand all the costs associated with both. Third-party delivery partners charge a commission, and while it can be hefty, in return you get to leverage proven technology, your items are showcased in their marketplaces, and you receive help with marketing your brand. An alternative to this is to utilize existing labor to create your own in-house delivery service. With this, you will need to consider insurance for off premise activity.

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Consider Your Menu When you develop your menu, keep in mind the temperature, prep time, quality, and taste. You want items that travel well and will maintain their temperature. You want your menu items to represent your brand with the utmost quality, therefore it is recommended to have a limited menu with items with similar ingredients and prep time so you can quickly get them out the door.

Experiment With Different Menu Concepts One of the benefits of having a Virtual Kitchen is it affords you the luxury of experimenting with new menu items or concepts, allowing you to quickly pivot if an item/concept isn’t moving. Given the virtuality of it, you can change available items live based on your inventory. Chefs will enjoy the opportunity to experiment with concepts and bringing them to market, which isn’t always possible in traditional restaurants.

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Incorporate Delivery Costs Into Your Virtual Kitchen Menu While a Virtual Kitchen does have many cost savings compared to traditional brick and mortar, it’s important to offset the delivery fees by incorporating them into your menu prices.

Safety & Sanitation While COVID-19 is still a threat, here are some ways you can keep your staff and customers safe while working in your Virtual Kitchen and delivery orders: • Provide your staff with PPE supplies. • Stock up on Sysco supplies to keep your space clean and staff protected. • Use contactless delivery methods

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Staff Your Kitchen Staffing has always been a challenge in the restaurant industry and even more so in a pandemic since staff may not feel safe coming back. One of the benefits of a Virtual Kitchen is the limited staff, which may help with securing the best talent that is ready to come back. There are a variety of channels to advertise your openings, also include your social media channels to find your top talent.

Thoughtfully Schedule Staff A Virtual Kitchen affords you many benefits, one being a more efficient workflow allowing you to focus on the quality, preparation, and packaging of your items – all which represent your brand. However, as an operator, you should keep an eye on labor costs. One way to do so is with a rigorous scheduling process, and while this can be done manually, you may consider a scheduling tool to assist with that.

Keep an Eye on the Inventory With any restaurant the goal is to increase your bottom line; a few key aspects are to prevent waste, lower food costs, and more importantly, control your inventory stock. Give careful consideration to the level of inventory you keep on hand when first starting out. It may be more pertinent to keep a lower inventory until things begin to take off with a more limited menu. Once you have more predictable data, you can gradually increase inventory. Be sure to lean on your Sysco Sales Consultant as they can help guide you. Assessing your inventory consistently will allow you to offer surprising new specials to ensure you leverage all your inventory and not allow it to go to waste.

Marketing Your Virtual Kitchen Whether a traditional brick and mortar restaurant or a Virtual Kitchen, both concepts are highly dependent on marketing. Create a strategy that puts your brand front and center with your online communicating and those outside of it. Don’t overlook pictures – take compelling picture of all your dishes you have on your Virtual Kitchen menu and utilize them on all your social channels. In the Marketing section of this resource, there are many tips and tricks to help you, just as Sysco is here to help with our Concierge Services.

Tune Into the Data Virtual Kitchens allow you to pivot quickly. Given our current environment, it’s evident that we need to be nimble. Staying abreast the data that is available to you is critical to your success. Know what is selling, what is not, and when it’s selling. Tune into your internet reviews - what are your customers saying about your dishes? What about the packaging? Or the Delivery? These are all important to protecting your brand.

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Food delivery is on the rise; while growth has slowed down because of COVID (2020 3.61%*) it is expected to have double digit growth by 2023.

$107.44B food delivery services market in 2019*

$154.34 B in 2023 at CAGR of 11.51%*

Source: May 20,2020, https://www.businesswire.com/

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Consumers crave convenience when it comes to delivery and take out.

% 60 of consumers order delivery or takeout once a week*

*Source: Restaurant Insider

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Regardless of the new revenue stream you embark on, having the right products and equipment is key. Utilizing the appropriate kitchen equipment and supplies will help support the process of set up and prep for your virtual kitchen menu items. To help you do this we have assembled some of our products to make your Virtual Kitchen, concept a success. Ask your sales consultant for assistance with any of the products on the following pages. Use the right products to maximize your performance in your Virtual kitchen. When determining menu items, consider leveraging google analytics or a Sysco Chef for what's trending for inspiration on what to prepare from your Kitchen. See a few suggestions here:

Sauces For sauces, you need to be able to quickly mix up ingredients. Power through your day with an Immersion Blender. The variable speeds allow for changes while the blender is still in use.

Comfort Foods Improve oil life and reduce flavor transfer with Sysco Classic Fry Oil Pods.

Consult with your Sales Consultant to find the right equipment for your needs.

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Sandwiches and Burgers Select a high performing grill to increase efficiency and reduce service time.

VIRTUAL KITCHEN TOOLKIT


You can count on Sysco when it comes to your restaurant equipment. We have the expertise for the world of virtual kitchens and can help outfit any size or shape facility. Please contact your Sales Consultant for information on any of these products.

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The health and safety of your guests should be your number one priority. To help you with that, we have put together some fundamental products you may want to consider. These include masks, gloves, sanitizer, and more. Your operation should have a large stockpile of protective equipment in order to supply every worker with an adequate amount.

Soap Hand Antibacterial Foam Advanced

Bleach Liquid Disinfectant Cleaner

Cleaner Floor Sanitizing Wash n Walk

4 / 750 ML

4 / 32 OZ

1 / 2.5 Gal

Container Paper #3 Takeout Kraft

2 / 65 Count

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Container Plastic 3 Compartment Hinged 9"x9" White MFPP

1 / 120 Count

Container Foam Hinged 3 Compartment Double Tab

150 / 9x9x3

Container Plastic 3 Compartment Hinged 8"x8" White MFPP

Container Plastic Clear Hinged 8"

2 / 100 Count

2 / 100 Count

Container Plastic Deli Translucent with Lid

Container Foam Hinged 3 Compartment Double Tab

Kit Cutlery Heavy Knife, Fork, Spoon, Salt & Pepper, Napkin

240 / 16 OZ

150 / 8x8x3

250 Count

Label Roll 1"x3" Tamper Protect It Permanent Blue

Towelette Moist with Alcohol

Thermometer Infrared Forehead Non-Contact IR

10 / 500 Count

1000 Count

1 Each

Mask Face 3 Ply Disposable

50 Count

Dispenser Hand Sanitizer Pedal Activated

1 Each

Sanitizer Hand with Aloe 77% Alc.

Sanitizer Hand Liquid 80% Alc.

12 / 25 FL OZ

6 / 0.5 Gal

VIRTUAL KITCHEN TOOLKIT


For the unforeseen future, we will need to continue to exercise social distancing of at least 6’ between us in all environments. Most restaurants are operating at or below 50% to maintain the required social distancing guidelines. Be sure to check your local guidelines, depending on where you are located there may be different restrictions. As a general rule, continue to check local and national guidelines to ensure you are aware of any new practices at all times. In addition to masks and sanitation, there is also a second tier of equipment you may need to consider. Check out the products below.

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Cal-Mil®Westport Social

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$213.48 GLR-AG011

AmericanMetalcraft Protective

$336.23 GLR-AG020

AmericanMetalcraft Black

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The CDC “recommends use of disposable items�*, from menus and condiments to napkins, utensils, and dishes. In many cases, single-use products are required for your customers. Sysco has a variety of items to assist you.

Sweet Plus Sysco Sugar Substitute Packet Yellow

Sysco Classic Sugar Packet

Sweet Plus Sysco Sugar Substitute Packet Green

Sweet Plus Sysco Sugar Substitute Packet Blue

# 5817251

# 4000899

# 3504836

#0191516 # 5641725

Sysco Imperial Knife Plastic Pieces Silver Extra-strngth

Sysco Imperial Spoon Plastic Pieces Silver Extra-strngth

Sysco Imperial Fork Plastic Pieces Silver Extra-strngth

Sysco CLASSIC Napkin Dinner 17" X 17" 3-Ply White 1/8 Fold

# 4961831

# 4961841

# 727998

# 1288415

Click here to view products * https://www.cdc.gov/coronavirus/2019-ncov/community/organizations/business-employers/bars-restaurants.html

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House Recipe Ketchup Packet

House Recipe Mustard Packet

House Recipe Mayonnaise Packet

Wholesome Farms Imp Continental Butter Cup Whipped

#8747859, #7124975

# 1608850

#1606854

# 5926902

Wholesome Farms Imp Continental Butter Chip

House Recipe Classic Honey Pure Packet

House Recipe Classic Cracker Oyster

Sysco Classic Salt Packet

# 5101054

# 4460176

# 4975899

# 4123196

Sysco Classic Pepper Packet

Sysco Classic Pepper Packet Fluted

Sysco Classic Salt Packet Fluted

Sysco Classic Wrapped Plastic Straw

# 4123212

# 4043295

# 4043279

#0191516

Click here to view products

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In times of anxiety, people often turn to familiar food to reassure themselves and their families. Comfort foods are called that for a reason; they let diners relax and eat something they know they’ll enjoy without having to make many decisions. Since the onset of the pandemic, sales of comfort food items have seen a drastic increase with noodles, sandwiches, and classic hot dishes leading the way.

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Chicken Tenders Fritter Homestyle

Chicken Wings Boneless Breaded Fully-Cooked

Cod Breaded Tail Chicken Fried 4-6 oz

0593606 | 2/5 LB

8666164 | 2/5 LB

3400680 | 2/5 LB

Entree Lasagna Vegetable

Entree Beef Short Ribs Braised Fully Cooked Sous Vide 1 Bone

Entree Lasagna Meat

2491579 | 4/5.75 LB

7086160 | 6/3.4 avg

2491561 | 4/6 LB

Entree Macaroni And Cheese

Vegetable Blend Italian Grade A

Pasta Tortellini Cheese Precooked

2491603 | 4/4.5 LB

3982345 | 1/30 LB

2467736 | 3/3 LB

Plantbased Protein Frozen Bulk Pulled Oats

Cabbage Greens Shredded Slaw .125"

7103439 | 5/2 LB

6517171 | 1/5LB

Appetizer Pepper Jalapeno Cream Cheese Ovenable

7055239 | 6/2 L

VIRTUAL KITCHEN TOOLKIT

Entree Cabbage Roll Stuffed

2516995 | 4/5.5 LB

Salad Pasta California

6528160 | 2/5 LB

Pork Rib St.Louis Fire Braised

1761671 |12/2 #av

Potato Hash Brown Dice Skin on

5020302 | 6/6 LB


Now that you have thought through your Virtual Kitchen, it’s time to spread the word about your new concept. Sysco Marketing Concierge offers strategies and customized marketing pieces designed to help you communicate your message.

Menu & Online Ordering Include those items that have higher profit margins, require shorter prep times, and transport easily while maintaining their quality. Review the 4Ps of menu engineering to help you strategize your menu and boost your profitability! Make ordering easy and mobile device friendly, encouraging them to return again and again.

Spread the Word It’s important to communicate and engage with your customers where they are – and the majority of your customers are online. Frequent communication and marketing via all your social media channels is essential to reach your existing customers and capture new ones.

Sysco Marketing Concierge is here to help you succeed! Contact us at 1-800-380-6348 or info@syscomarketingservices.com

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Manage Your Menu Content • Focus on what you do best – provide a consistent, quality product that your customers can count on. • Evaluate and update your menu considering the 4P’s of Menu Engineering:

PROFITABILITY • Review current item costs and make pricing adjustments based on current market conditions. • Identify areas where you can switch out ingredients to enhance profitability without compromising quality.

POPULARITY • Feature your signature items – what are you famous for? • Review past history or competitive analysis for key offerings.

PREPARATION • Select items that require limited preparation and assembly. • Cross-train your kitchen staff for maximum efficiency. • Review and reduce your inventory to minimize stand-alone items and excess stock.

PORTABILITY • Ensure your items package and travel well – maintaining their quality and freshness. • Invest in the proper carryout containers to maintain temperature and presentation to most closely mirror dine-in experience.

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Talk to Your Customers Utilizing social media to communicate with your customers is more important now than ever before. With social distancing minimizing in-person connection points, developing a robust campaign of simple and positives messages to encourage consumers to use your services can help you bridge the gap and reach your customers where they are.

Sysco is here to support you and we have put together some core fundamentals to help you engage with your customers online, boost awareness on your offerings, and keep your business going strong during this unprecedented time.

Your Website, Email, and social Media Can Help You to: • Be responsive and virtually interact with new and existing customers in a personal and transparent way. • Answer customer inquiries about your business operations and support. • Stay connected with your employees by sending them updates. • Get guests to feel safe with your services and comfortable with their experience. • Share photos, promotions and updates about your business and services. • Make sure you’re top-of-mind when your customers are looking for dining options. • Share your services and availability.

Promote Your Services

Share Your Commitment

VIRTUAL KITCHEN TOOLKIT

Drive Traffic

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The Sysco iCare program is designed to make you more efficient, increase your profitability and make it easier for you to manage your operations. The intent is to help drive business in all areas of house with our holistic collection of offerings, encompassing our specialized services, restaurant technology, tools, partnerships, and personalized consultation.

We have partnered with best-in-class companies to make sure our customers have the right tools to optimize their business and increase traffic.

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VIRTUAL KITCHEN TOOLKIT


Need help with your Virtual Kitchen? Contact your Sales Consultant or Sysco Concierge Services at 1-800-380-6348 or info@syscomarketingservices.com

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