Cordia Corporation (OTC: CORG) today provided an update on the execution of its ghost kitchen business plan.
Virtual Dining Brands. The company has two virtuals (www.virtualdiningbrands.com) now op- erating in the Las Vegas market. These restaurants have allowed the company to evaluate its concepts, develop custom packaging and delivery procedures, and position the company to scale its future brands.
Cordia is building a subscription program for virtuals that will allow customers to sign up for a fixed number of meals every month for one price. The company expects to integrate the sub- scription service with its existing virtual currency rewards program.
Celebrity Brands. Cordia believes that there is significant opportunity in branded menus for delivery apps. The company has one celebrity brand under contract. Additionally, the compa- ny is in negotiations for five additional brands. Cordia is working with both US Foods and Sysco to develop custom menus for each opportunity.
The company projects that these these partnerships have the potential to be rolled out to at least 500 restaurants in the next 12 months. Cordia anticipates that each licensed virtual brand would generate a minimum of $100 per week per location.
Management believes that a portfolio of brands would allow the company to aggressively cap- ture market share and to secure favorable rates with delivery apps.
Blind Pig Las Vegas. The company’s owned location is operating and serves as the back end for the virtual brands. Additionally, the company intends to add gaming to the Las Vegas loca- tion. The Bling Pig in partnership with a Nasdaq listed company plans to offer video poker to dine in patrons.
Additional Company Owned Locations. The company has had discussions with a national restaurant chain about acquiring additional units in different states. These units would serve as company owned locations for ghost kitchens, virtual restaurants, and potential dine in. During the past month, the company has fielded offers from landlords, developers, and independent restaurants to acquire closed or closing restaurant space.
The company’s target cities remain Los Angeles, San Diego, Dallas, Ann Arbor and the New York metropolitan area.
