These restaurant chains have created spinoff virtual brands

A few years ago, established restaurant companies were creating new eateries to appeal to younger consumers. That trend hasn’t slowed down, but now those spinoff brands exist in only cyberspace.

Virtual brands are restaurants available only on third-party delivery apps. Their creators use existing restaurant kitchens to whip up orders from a menu that was designed for off-premise customers. Pizza, chicken wings and burgers are popular options because they all travel well and don’t usually require extra equipment to make.

While virtual brands were becoming more popular before the pandemic, the boom of takeout and delivery orders during the health crisis has led many more restaurant companies to take the plunge. For many companies, virtual brands were one of the few bright spots for the businesses during lockdowns. In the 12 months ended March 2021, U.S. restaurant digital orders grew 124%, according to the NPD Group.

However, some industry experts think the field is becoming too crowded. Many virtual brands have similar concepts and menu offerings, and marketing can be tough without a brick-and-mortar location to help build a reputation. Delivery sales are also expected to moderate as consumers return to dining on premise.

Here are the restaurant companies that have launched spinoff virtual brands:

Outback Steakhouse parent Bloomin’ Brands debuted Tender Shack in Tampa Bay, Florida, a year ago, cooking the chicken tenders and sandwiches in its Carrabba’s Italian Grill locations. By February, it had launched nationwide with more than 750 restaurants making its food.

In April, Bloomin’ CEO David Deno told analysts that sales at Tender Shack had softened some as Bloomin’ Brands’ dining rooms reopened. The company is looking to ramp up the virtual brand’s marketing to bring back customers.

“We do believe that the $75 million annualized sales goal is attainable, but we have some work to do on that,” Deno said.

Chili’s and Maggiano’s Little Italy owner Brinker International launched It’s Just Wings in June 2020. A year later, as the company closed out its fiscal year, its U.S. sales exceeded $170 million. More than 1,000 Brinker restaurants are cooking the virtual brand’s chicken wings, and some international franchisees have even begun operating It’s Just Wings.

On the heels of the success of It’s Just Wings, Brinker has also created a Maggiano’s spinoff, Maggiano’s Italian Classics. More than 250 restaurants are making the virtual brand’s orders, roughly five times the number of locations for the flagship brand. Brinker is forecasting that its footprint…