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“I think we’re the first group of restaurants to have sold 50 franchises before we opened. It’s crazy, ”Brooklyn Dumpling Shop founder Stratis Morfogen told Nation’s Restaurant News.
The first unit of Brooklyn Dumpling Shop opened this year in New York and the brand is on track to have 125 units by 2023. Of these, 50 were in fact signed even before the opening of the first unit. .
What makes Brooklyn Dumpling Shop special enough to get this attention? Technology.
The restaurant chain sets itself apart from its competitors because of its automatic format which requires very few employees, a small area and little start-up money.
In fact, Brooklyn Dumpling Shop requires no employees to operate day to day and is open 24 hours a day with contactless orders and 150-degree heated lockers for pickup.
While this may be in line with current consumer habits, Brooklyn Dumpling Shop was developed to serve the consumer of the future and how habits slowly changed before the pandemic. The technology was in development before the COVID pandemic and the switch to contactless ordering and payment.
Each approximately 700 square foot location receives frozen dumplings from the warehouse daily and prepares them instantly as customers place an order. The restaurant then sends the dumplings to the lockers for scannable pickup. According to Morfogen, some orders can get a customer in and out in less than 30 seconds if they place the order in advance.
But since its inception, Morfogen and his team have developed other formats for Brooklyn Dumpling Shop, including a 150-square-foot kiosk and five-lane drive-thru, which are optional renders available to franchisees. If developed, these formats will work without human contact.
Using their phone as a remote control, drive-thru customers will stop in one of the five lanes and place their orders on their phone. They will see a green light when their order has been processed and they will proceed to the next station and scan their barcode. The automatic locker containing his order will open with the customer’s meal.
As for people who suggest technology could steal jobs, Morfogen has an answer for that.
“I’m saving jobs,” he said. “Here are the facts. Seven out of ten restaurants fail within three years. Reason number one is excessive payroll followed by under-capitalization and high rent. If we can turn around and lower the industry standard for payroll from 30% to 15%, where instead of a staff of 11 or 10 people, you do it with four or five employees, you save jobs [in the long run]. “
It doesn’t even respond to the current job crisis, during which Morfogen says “nobody wants to do this heavy work anyway.”
Morfogen says he couldn’t run his business with his small number of employees.
“I believe technology will save jobs in the long run, not for individual units, not just for closed minds. It’s not the individual units that I’m concerned about, it’s the entire industry, ”he said.
With this work model, employee payroll represents around 12 to 14% of turnover.
But food matters too, and the portable nature and flavors keep diners coming back.
The dumplings were inspired by Morfogen’s other business, gourmet restaurant Brooklyn Chophouse, also in New York City.
There are currently 32 dumplings on the menu at Brooklyn Dumpling House, with flavors ranging from Reuben, peanut butter and jelly, to French onion soup and lamb gyro. Flavors of the World offers all types of cuisine to diners.
Brooklyn Dumpling House is franchised through franchise development company Fransmart.
“The rapid expansion that Brooklyn Dumpling Shop has experienced in just one year is not only indicative of the brand’s appeal but also of its success,” Dan Rowe, CEO of Fransmart, said in a statement. “Interested franchisees must act now before all of the hottest territories in the country are secured.”
The current franchise plan is to open three or four units in 2021, 35 in 2022 and 125 in 2023.
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