Dive Brief:
- Fast casual chain Roti Modern Mediterranean has opened its first ghost kitchen in Smyrna, Georgia, allowing the brand to offer delivery in the greater Atlanta area without a traditional restaurant, the company said Tuesday in a press release.
- The ghost kitchen will allow Roti to test demand, reach new customers and scale quickly, the company said.
- Roti, which Edible Brands acquired out of bankruptcy last February, has been opening both traditional and non-traditional locations, according to the press release. The brand also secured a vendor partnership with Mercedes-Benz Stadium to offer a limited Roti menu and Edible dessert options.
Dive Insight:
While many brands, including Red Robin, Chili’s and Applebee’s, have pulled back on virtual brands and ghost kitchens, Roti is among a handful continuing or starting with the off-premise-only model option as a growth strategy. Ghost kitchens have struggled in recent years — Kitchen United sold its intellectual property in 2024 and closed its physical locations — as the model has struggled to drive enough sales to sustain growth in U.S. markets.
The brand saw the Smyrna market as an ideal place for a ghost kitchen because it is close to Roti’s headquarters and the suburb is a fast-growing market, making it ideal for expanded delivery. Roti doesn’t have a significant presence in Atlanta other than its location in the Mercedes-Benz Stadium, so this unit is a test for potential traditional growth.
“Opening this ghost kitchen is a major step forward in our development strategy,” said Matthew Walls, president and chief stores officer of Edible Brands. “It allows us to deepen our presence in Atlanta while expanding our non-traditional footprint.”
Roti is working with DoorDash, Grubhub and Uber Eats to provide delivery, but didn’t specify if its ghost kitchen is located in a facility that supports multiple brands, like CloudKitchens.
In addition to its non-traditional growth strategy, Roti began marketing a national franchising opportunity last April with focus on markets like Michigan, Ohio, the Carolinas, Georgia, Florida and Texas, per the press release.
Roti has 17 company-owned units in Chicago, Washington, D.C. and Minneapolis. It plans to expand with single- and multi-unit franchising agreements. Total investments for a Roti franchise ranges from $494,300 to $813,000, which includes a $35,000 initial franchise fee, according to the press release.
