Requirements:

a. You are expected to become a specialist on the topic discussed within the article.
Therefore, while you are focusing on one key recent article you will be required to
further investigate and research key topics discussed within the article. (Therefore,
research other related articles that relate to the companies, people and events
referenced in the main article) Minimum of 3 more articles.

b. First, provide a summary of the main article – in your own words. Then describe what
the effects of this issue are for Canadian business (or a specific industry or company if
identified in your article). For example, is the company’s goal to achieve greater sales,
increase market share, expand to new markets opportunity, reduce costs, etc.? How will
this issue/situation affect these goals? The matter may not always be good news – a
plant closing for example, but this is an acceptable story.

c. Also, investigate the Global business impacts of the article. Does the topic involve
corporate social responsibility (CSR) issues, human rights issues and/or environmental
impacts as a result of the company’s decision to move forward or to exit a particular
foreign market? Why is this event occurring? (Jiahao)

Format: Complete your research and submit a professional report of 4-6 pages, 12
font, double spacing, not including title page and appendices of the situation of the
article, which must be in your own words (original arguments). (APA referencing).

Summary
Global Business Impacts
Wendy’s ghost kitchen strategy will change the mode of the fast-food chain and impact the

foodservice industry, and these ghost kitchens will be spread across the US, Canada, and the

UK. (DEAN, AUG 13, 2021) Due to the strict social isolation during Covid-19, such as lockdowns,

social distancing, non-essential business, and cancellation of the event, it has a severe impact

on the foodservice industry. (Gössling et al., 2020) Many foodservice businesses have to close

for bankruptcy, but there are also some restaurants looking for innovations, the operators

globally are testing new formats that eliminate seating areas or encourage consumption

elsewhere as an alternative to sit-down dining. (Technomic) The Wendy’s ghost kitchen only

offers food on delivery; they have a low-overhead and higher-margin and easier expanding

their urban business. It will attract more brands to join the field because it can reduce the risk

of increased food costs, high rents, and severe labor shortages, and allows the brand to more

rapidly have a presence in a new market. (Smith, October 13, 2021)

Meanwhile, Wendy’s open the delivery kitchen platform by a partner with Reef Technology,

Reef's distribution kitchen network spans more than 30 cities around the world, helping to

reduce traffic congestion and pollution by bringing food closer to customers and buying the

kitchens, and hiring workers. (The Wendy’s Company) Reef has a workforce development

program, they partner with non-profits working and academic institutions to create long-term,

meaningful jobs in the community, promoting economic equity and career opportunities. (Reef)
According to a Reef Technologies representative, food delivery is growing 300% faster than

dining in at restaurants and their virtual kitchens use parking facilities because it is near

population centers and convenient. (GARWOOD, AUGUST 18, 2021)

Conclusion

Lockdowns and social distancing disrupt the traditional business models and the food delivery

business continues to expand, the delivery becoming a large part of the restaurant’s business.

On the other hand, these restaurants also facing economic pressure and increased high

commissions from delivery platforms. Therefore, the ghost kitchens market does not need the

physical restaurant and storefront attached, it allows restaurants to expand and experiment

with minimal investment risks. So, the restaurants will need to adapt their strategies, and try

the new way to partner with delivery platforms to reduce the costs associated with delivery.

(Kabir Ahuja, September 22, 2021)

Reference:

Company, T. W. (Aug 11, 2021). Wendy's and REEF Announce Development Commitment for
700 Delivery Kitchens Across the U.S., Canada and the United Kingdom by 2025. PE
Newswire. Retrieved from https://www.prnewswire.com/news-releases/wendys-and-
reef-announce-development-commitment-for-700-delivery-kitchens-across-the-us-
canada-and-the-united-kingdom-by-2025-301352804.html
DEAN, G. (AUG 13, 2021). Wendy's plans to partner with a startup to open 700 delivery-only
ghost kitchens by 2025. An exec breaks down why. Business Insider. Retrieved from
 https://www.businessinsider.in/retail/news/wendys-plans-to-partner-with-a-startup-to-
open-700-delivery-only-ghost-kitchens-by-2025-an-exec-breaks-down-
why-/articleshow/85300538.cms
GARWOOD, G. (AUGUST 18, 2021). Wendy’s Unlocks `Power of Proximity’ in Delivery Kitchen
Partnership. Food Institute. Retrieved from https://foodinstitute.com/focus/wendys-
unlocks-power-of-proximity-in-delivery-kitchen-partnership/
Kabir Ahuja, V. C. (September 22, 2021). Ordering in: The rapid evolution of food delivery.
McKinsey & Company. Retrieved from
https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-
insights/ordering-in-the-rapid-evolution-of-food-delivery
REEF. (n.d.). NBRHD CAREER INITIATIVE. Retrieved from REEF:
https://reeftechnology.com/nbrhd-career-initiative
Smith, S. (October 13, 2021). A look inside the $43 billion ghost kitchen industry. National Retail
Federation. Retrieved from https://nrf.com/blog/look-inside-43-billion-ghost-kitchen-
industry
Technomic. (n.d.). Technomic’s Take: COVID-19, The Foodservice View. Technomic. Retrieved
from https://www.technomic.com/technomics-take/coronavirus-foodservice-view
Gössling, S., Scott, D., & Hall, C. M. (2020). Pandemics, tourism and global change: A rapid
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