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Kroger, ClusterTruck Partner on Dark-Restaurant Delivery

Kroger Delivery Kitchen to build on tech-powered virtual restaurants in 4 cities. In a new play to meet consumer demand for convenient, prepared meals—and further blur the lines between channels of trade—the grocery retailer is partnering with a leading virtual restaurant chain in four cities.

Jon Springer, Executive Editor

December 2, 2019

3 Min Read
Cluster Truck
In a new play to meet consumer demand for convenient, prepared meals—and further blur the lines between channels of trade—the grocery retailer is partnering with a leading virtual restaurant chain in four cities.Photograph courtesy of Kroger

The Kroger Co. has announced a partnership with ClusterTruck to open a series of delivery-only “dark kitchen” restaurants capable of delivering fresh meals to shoppers in less than 30 minutes.

Kroger Delivery Kitchen Powered by ClusterTruck will offer multiple menus from a single scratch kitchen, the Cincinnati-based retailer said. The service officially launched Dec. 2 in Carmel, Ind., with additional availability in Indianapolis; Columbus, Ohio; and in Denver, where the service will be known as King Soopers Delivery Kitchen.

The move represents a new play to meet consumer demand for fresh prepared food and will further blur the lines between food retail and restaurants—a field Kroger executives have made no secret of pursuing.

ClusterTruck, based in Indianapolis, operates dark kitchens powered by proprietary software that uses custom algorithms to optimize kitchen and delivery operations. According to the company, this approach ensures that nearly every order is in the hands of the customer within seven minutes of the meal’s preparation. The average time between placing an order and a customer receiving their food is less than 30 minutes.

“The way our customers order and receive meals is evolving, and ClusterTruck’s innovative culinary and digital design is cracking the code for the future of profitable meal delivery,” said Yael Cosset, Kroger’s chief information officer, in a release. “Kroger is leveraging ClusterTruck’s advanced technology to ensure our customers don’t have to sacrifice quality and value for convenience when it comes to meal delivery. Kroger Delivery Kitchen Powered by ClusterTruck will allow our customers to access restaurant-quality fresh and delicious meals like never before and without having to pay excessive service or delivery fees.”

ClusterTruck was founded in 2015 and opened its first kitchen in 2016. According to its website, it orchestrates delivery driver availability and meal preparation to ensure customers receive fresh food. Users can schedule deliveries and make group orders. The Kroger association now aligns with Clustertruck operations in the cities where the partnership operates; in other sites, such as Kansas City, the site maintains branding as ClusterTruck, although the menu options and look are similar.

Food offerings on the site include a selection of “chef recommendations” breakfasts (called Brekkie); pizza and wings; a kids menu; burgers and sandwiches; soups and salads; Latin-inspired street food it calls Comida; and sides and drinks. Nearly all the offerings on the Carmel site were marked with discounted pricing vs. the same offerings in Kansas City.

“Our recipe for success has been a blend of cutting-edge software combined with high-quality ingredients and delicious variety,” said Chris Baggott, ClusterTruck's co-founder and CEO. “This winning combination has allowed us to thrill customers across the country while achieving profitability. We’re excited to partner with Kroger to redefine the food experience for their valued customers.”

Kroger executives have long looked at restaurants and prepared food as market-share opportunities, noting shoppers spend about as much on food away from home as they do on food at home. The company in recent years has opened a restaurant; invested in the meal kit company HomeChef; and recently launched a food hall at a new flagship store in downtown Cincinnati. Kroger will potentially bring new marketing power and its own customer data to ClusterTruck.

“ClusterTruck’s ultra-fresh and quick made-from-scratch meals set them apart in the food delivery landscape,” said Suzy Monford, Kroger’s group VP of fresh. “Kroger Delivery Kitchen customers can order pizza or pad Thai on the same order and get it delivered hot and fresh, within minutes of the meals being prepared. We are excited to work together to bring this partnership to life to provide our customers with real food delivered to their doorstep.”

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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