Chipotle founder Steve Ells’ long-anticipated new Kernel concept is scheduled to finally debut in New York City next month, promising to reinvent the restaurant economic model— not only in ways that benefit the planet but also to benefit the budding chain’s workers.
One of the pillars of Kernel is its sustainable design. It’s plant-based, so greenhouse-gas-emitting animals are not part of the equation, and the restaurants are designed to use less energy, with a low carbon footprint. But the design also aims to offer a never-seen-before model for the worker experience, which is key to its long-term prospects, said brand president Stephen Goldstein in an interview with Restaurant Business.
Stephen Goldstein | Photo courtesy of Melanie Dunea.
“You see where a lot of operators are struggling in this current environment, and they’re struggling to deliver the level of service they really want,” said Goldstein.
A big impediment is the complexity around engaging team members to stay and give customers a great experience, he said. Many have attempted to solve that problem “at the edges,” even offering higher pay.
“But we think that actually fundamentally changing how the business works is the only way that you can create a new sustainable model for the future,” said Goldstein.
Kernel's menu is prepared mostly in a central kitchen.
At Kernel, for example, wages will start around $27 per hour in New York City, and the benefit package includes access to healthcare—the same coverage that Ells himself will get—as well as both vacation and sick days along with schedule flexibility. But both corporate and hourly workers will also have the opportunity to earn stock options, which Goldstein predicts will go a long way in building loyalty and retention.
“This isn’t just some Powerpoint that sits on the intranet,” he said. “We give them information and we constantly coach and mentor to remind them that, hey, this could be something amazing and you’re helping to make it amazing, and you also have a piece of that.”
Of course, Kernel is also designed to work with fewer team members overall. Efficiency is another a pillar of the brand.
Much of the food preparation and cooking will occur in a central kitchen just blocks away from the first unit, which is about 1,000-square-feet in midtown Manhattan, tucked between a Cava and a Just Salad.
Kernel's Crispy "Chicken" Sandwich, made with a plant-based Motif product.
The concept’s menu, designed by former Eleven Madison Park sous chef Andrew Black, is short and simple, at least for the debut. There are only two hot entrees: a roasted veggie burger (the Kernel Burger) with salsa verde and pickled onions on a toasted (vegan) brioche; and a crispy faux-chicken (Motif, made with wheat and soy) sandwich with slaw on the toasted brioche.
There are sides, like the destined-to-be-popular “thrice-cooked” crispy potato chunks with a choice of sauce; or roasted carrots with farro, spiced almonds and salsa verde.
Kernel's marinated beets with quinoa, super-seed crunch and green hummus.
The rest are cold items, like a Caesar salad made with Daring plant-based chicken, or the Kernel Salad with kale, radicchio, hummus and lentils with an herb-mustard dressing. For dessert, cookies like chocolate chunk made with olive oil, toasted wheat and flaky salt. Entrees range from $7 to $14.
This model, again, lends itself to creating a better job experience for workers in the restaurant.
In the Kernel storefront—manned only by three team members and a robotic system—food is mostly reheated and assembled. There are no fryers to sweat over, freezers to monitor, no venting demands to increase real estate costs, or even walk-in refrigerators that can drive up utility bills. There are no kiosks or cash registers or point-of-sale hardware.
“We can pretty much go into any retail location, even stuff that’s not necessarily restaurant zoned, or restaurant specific,” said Goldstein.
Equipment includes a toaster, an impingement oven and a robotic arm, from tech company Kuka, which portions and helps workers assemble orders quickly. Once prepared, menu items are placed in a cubby, which guests can conveniently access when they arrive.
The Kernel Salad with kale, radicchio, hummus and lentils.
Food is delivered from the central kitchen on a regular cadence—by bicycle, for now. Goldstein, who came to Kernel last year after helping to launch the delivery disruptor Wonder, said he is confident transportation options will materially change in time to fit Kernel’s low-carbon values, though he’s vague about what that might mean in the future.
In fact, Goldstein emphasizes that this is a startup, and the idea here is to learn as they grow. Kernel plans to harness feedback and insights from workers throughout the system, borrowing from Toyota’s lean manufacturing approach, which embraces “constant improvement,” he said.
The debut unit appears very clean—perhaps even a bit stark—without the typical promotional food or branding imagery on the walls, and that's by design too. Goldstein said Ells wanted to create a concept that is efficient and eliminates waste, without a lot of clutter.
“We don’t have a lot of stuff on the walls. It’s kind of focused,” he said. “And we think there’s a beauty and simplicity to that focus that allows you to execute brilliantly every single time.”
Two more locations for Kernel have been selected, both in Manhattan, a bicycle-ride away from the central kitchen.
Kernel's dark chocolate chunk cookies with toasted wheat and flaky salt.
Kernel has raised about $36 million to get the concept going, and the plan is to open 15 units within two years. Eric Wilson, who previously served on Chipotle’s marketing team for 10 years, is Kernel’s chief operating officer. Olaaf Rossi is the chief technology officer.
Goldstein said they have not yet determined how many units can be served by each central kitchen. Perhaps one could serve all units in Manhattan, or maybe two. The big unknown variable at this point is demand.
“If we go gangbusters and we’re beating our projections or what we hope to achieve, then we may need a second kitchen,” he said. “And that’s a great problem to have.”
UPDATE: This article was updated to clarify Eric Wilson's role at Chipotle.