The newest ‘ghost kitchen’ could be coming to a parking lot near you

The trailer, which takes up about half of the 12 spaces in the tiny parking lot at 21 A St., is a “ghost kitchen,” one of several in the area operated by Reef Technology, a parking company that manages and in the delivery business on the last mile. For three years she has been trying to convince property owners that they can make more money by using the space for something other than parking cars.

The trailers, known as “ships”, serve as the central dispatch for the delivery of groceries to customers who order via apps such as Uber Eats, DoorDash and Grubhub. A single trailer, like the one in South Boston, could prepare food for more than half a dozen restaurants that license menu items to Reef, much like a franchise model. Reef takes care of prep and packing, and usually pays a fee to property owners to park their trailers.

A “ghost kitchen” operated by Reef Technology operated in a small parking lot on A Street in South Boston. The chefs create meals for several restaurants, including the one on this sandwich plate. Pat Greenhouse / Globe Staff

Most of the brands Reef sells only exist online through ghost kitchens, such as Man vs. Fries, Sticky Wings, and Rebel Wings. But order a Nathan’s Famous Hot Dog from Uber Eats from a Boston neighborhood, and it can come off a Reef trailer too, though the chain has five brick and mortar locations in Massachusetts.

The food is delivered in branded packaging without any proof of origin.

“Customers would have no idea where their food was coming from,” Reyes said.

Chef Messiah Guity grabbed a sticker with a restaurant logo on it while packing an order in Reef’s kitchen in an industrial area of ​​Everett. Josh Reynolds for The Boston Globe

Reef, backed by Japanese investment firm SoftBank, raised $ 1 billion last year to expand across the country and has since opened three ghost kitchens in the Boston area, including the one in South Boston. The other two are located next to each other in an industrial area of ​​Everett’s Commercial Triangle, near where a developer recently received major approval to build a luxury residential building.

Jonathan Medina, a cook in one of the Everett kitchens, said most delivery drivers were used to traveling to the desolate area of ​​town to pick up orders, although initially it was confusing.

“Some come here for the first time and wonder, confused, ‘Is this Nathan? Are those rebel wings? ‘”He said.

Medina said it would take some explanation to help people understand what is going on.

“I usually use brands that people know and say it’s like having McDonald’s, Burger King and Wendy’s in the same truck,” he said.

Supervisor Tyrik Jackson and Line Cook Messiah Guity worked in one of Reef Technology’s two delivery kitchens in an industrial area in Everett. Everett’s kitchens sell groceries online under at least 10 restaurant names, including Rebel Wings, MrBeast Burger, Man vs Fries, and Fuku. Josh Reynolds for The Boston Globe

Miami-based companies like Reef have become more appealing to restaurateurs since the pandemic began, allowing them to reach a wider customer base without opening new locations or hiring more employees.

Large chains also rely on the concept. In August, Wendy’s signed a deal with Reef to open 700 ghost kitchens in the US, UK and Canada over the next five years. Some of the kitchens in Boston sell groceries from DJ Khaled’s Another Wing, a virtual brand he launched with Reef last Thursday. It will be used in more than 150 ghost kitchens worldwide, which is roughly half the current Reef kitchen area.

These six restaurants, including Rebel Wings and Capriotti’s Sandwich Shop, appeared on Uber Eats with the code “BOS07-1”. It’s a sign that food is coming from Reef’s Haunted Kitchen in Everett.Uber eats

Ron Jewett, Reef’s manager at Everett, said business is booming, with each kitchen preparing up to 300 or 400 orders on weekends. He said Reef plans to add a third trailer to the site that will feature packaged goods like ice cream, chips and candy.

Though it sells groceries from more than a dozen Massachusetts restaurants, Reef only has 30 employees. It plans to hire another 40 to meet demand, said Mason Harrison, a Reef spokesman.

Jewett expects Reef to add seven more trailers in the Boston area and also move to a two-story building near Suffolk University that would house a grocery, convenience, and grocery delivery service.

Chefs Eddie Morgan and Jonathan Medina filled orders in one of two all-delivery kitchens operated by Reef Technology in Everett. Josh Reynolds for The Boston Globe

Reef, formerly known as ParkJockey, was founded in 2013 as a parking lot operator. Through partnerships and acquisitions, it grew to become the largest parking lot company in North America with 5,000 properties under management, including approximately 200 in Massachusetts, Harrison said.

The company’s ambitions go well beyond parking cars. In 2019, it was renamed to focus on converting lots into hubs for ghost kitchens and other delivery businesses.

But not all Reef managed properties are designed to be more than just a place to park a vehicle. For example, Reef owns Republic Parking, which manages approximately 100 MBTA parking spaces. A spokesman for the T, Joe Pesaturo, said the agency has no plans to use the land to host Reef kitchens, and under the existing contract, Reef will not be able to place modular structures on the MBTA property.

As Reef expands, city governments reject it as it is supposed to be regulated. Business Insider reported that the company’s kitchens were closed in at least six cities for violating city and health regulations.

Harrison said Reef is trying to work with cities to see how its model can best fit into the existing permit framework. Although Reef sells groceries, technically it doesn’t work like food trucks or restaurants that have to meet certain standards that don’t always exactly apply to ghost kitchens, he said.

The staff brought the prepared food to the Reef kitchen in parking lot 21 A St., where cooks prepare meals for several restaurants. Pat Greenhouse / Globe Staff

In Boston, Reef has received food truck permits that allow it to prepare food for delivery only. (A Boston city spokesman confirmed Reef passed its health inspections.)

“Regulations and compliance are a constant topic of conversation in all cities because we’re creating something new,” Harrison said in an email.

Bob Luz, president of the Massachusetts Restaurant Association, said Reef’s food truck permits banning on-site sales make the concept less threatening to nearby restaurants.

“As long as they have to play by the same rules … as long as these [rules] enforced and kept in check, I think it will be fine, ”he said. “Food trucks did not lead to massive restaurant closings.”

In South Boston, Reef signed a six-month lease with local parking lot owner Stanhope Garage. Ken Aiken, office manager of family business Stanhope, said monthly sales of the property in South Boston have tripled from pre-pandemic times due to the Reef lease, and companies are debating whether the grocery business will take over the entire property.

“We wouldn’t get that from parked cars,” said Aiken.

In the meantime, the Everett property will soon change hands as part of a redevelopment project, so the future of the reef trailers there is uncertain. An Everett city spokesman did not respond to a request for comment on Reef’s licensing or leasing status.

Delivery drivers were waiting at the order window of one of two Reef Technology kitchens in Everett.
Josh Reynolds for The Boston Globe

Reef’s delivery centers cannot do without traffic jams. Delivery drivers clog Spring Street in Everett over the weekend, Medina said. In South Boston, Reef’s Kitchen is across from residential and condominiums.

Yossi Sheffi, director of the MIT center for transportation and logistics, said companies like Reef need to be good neighbors in addition to valid permits and passed inspections.

“It works until there is a lawsuit, and then it’s not about whether they have a permit, but whether they disturb the neighborhood,” he said.

Joe Rogan, vice president of sales and marketing at Rita’s Hospitality Group catering firm in Everett, which is located near Reef, said Reef was operating in the “wild, wild west” of the restaurant world following the pandemic. Rogan said he wouldn’t order from a trailer-based virtual restaurant, but realizes that he probably isn’t Reef’s target audience.

“A lot of younger people who are mobile apps friendly find this convenient because it comes with it. they don’t have to go out, ”he said. “Technology makes people order.”

Anissa Gardizy can be reached at [email protected]. Follow her on Twitter @ anissagardizy8.