Shaan Puri Profile picture
9 Jan, 13 tweets, 5 min read
just sent out a newsletter to 16k subscribers about...CLOUT KITCHENS:

WHAT it is...HOW it works...and HOW MUCH $$$ they make👇
A lot of people have heard of Cloud Kitchens (a restaurant with no storefront. They ONLY do delivery via doordash, uber eats etc.)

That's a cloud kitchen. What's a 'clout kitchen'?
It's a cloud kitchen - branded with an influencer who has clout.. hence, a clout kitchen.

The best example? 3 weeks ago when @MrBeastYT came out with MrBeast Burger and it became the #1 app on the app store, and got slammed with so many deliveries it was 2-3 hour delays Image
background - @MrBeastYT is a youtuber with ~50m youtube subscribers (aka, a shit ton)

He rolled out his own branded restaurant in ~300 cities overnight, with a simple menu of branded burgers, fries & shakes.

How did he do it?
He partnered with Virtual Dining Concepts (VDC), the brainchild of Robert Earl (ceo of planet hollywood).

They license influencer brands, and create virtual restaurants - For example:

* Mariah Carey's Cookies
* Mario Lopez Tortas
* Paulie D's Subs
..and now Mr Beast's Burger
VDC goes into cities and partners with restaurants that have extra capacity (that's most restaurants nowadays)

They send them branded packaging. So to a customer, it looks like MrBeast sent them a burger. But the food is made by a local burger joint
This is a win-win.

Celebrity gets to roll out 200-300 locations, overnight

Restaurants get extra orders & extra $$ (helpful during covid) that they can fill using staff + ingredients they already have
I asked a friend in the industry to walk me through the economics. This isn't specific to this deal, but here's a back of the envelope calculation of how much a clout kitchen can make:

Spoiler - the celebrity can make ~$10-20k per day in profit share Image
The math is very rough, and some assumptions are off.

But ball park I think it's right.

With each restaurant only doing 40-60 orders per day over a 10 hour window...and multiply it by 200-300 locations...

that's a lotta cheddar
This isn't the first time celebs slap their name on a commodity product.

Alochol --> @RyanGosling (gin), @TheNotoriousMMA (whiskey), @KingJames (tequila)

Makeup --> @rihanna (fenty), @KylieJenner

And this won't be the last... but it is a new way to turn fame into fortune.
The next pizza hut won't be brick and mortar, it'll be in the cloud.

And it'll probably be influencer branded.

Every day @stoolpresidente doesn't launch "One Bite Pizza" is another day he puts off a $50M+ payday.
Shoutout to @StuIverson for predicting this way back in February. Before covid, when we were all still french kissing & sharing straws. He called this on @myfirstmilpod !
if you like getting breakdowns of how business work. follow me (@ShaanVP) or subscribe to the newsletter for more in depth stuff

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with Shaan Puri

Shaan Puri Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @ShaanVP

7 Jan
🧠 3 years ago - I created a new framework for New Years Resolutions.

Year after year I would set New Years Resolutions (the same ones every year) and fail to reach them.

Am I doing this wrong? Am I just weak minded?

Then I found this, and switched up my new years routine Image
I wasn't alone in failing at my new years resolutions.

Not only do 90% of people give up on their new years resolutions… on average they fail by January 18th (known as “Quitters Day”)
It makes sense. If you were waiting for an arbitrary day to decide to change - you probably weren't that commited to begin with.

So instead of making plans for the future, use new years as a moment to reflect

They don't teach us this in school, so here's a framework for it👇
Read 21 tweets
30 Dec 20
If you wanna level up - the fastest hack is to hangout with people who are ALREADY at that level.

The beauty of twitter is that you can hang with anyone.

The problem is ppl follow the wrong accounts. It's noisy as f*ck.

Here's 27 people you should follow (and why)👇
If you hang with smart, interesting, successful people - you will start to think & talk that way too.

We are monkeys that copy what we see. You can fight it, or use that to your advantage by surrounding yourself with people who you want to become more like.
Group 1: Smart, Rich, & Don't Give a F*ck (no filter)

@chamath - was early FB, has big balls, bet early on Bitcoin & SPACs

@rabois - kind of a dick but he's clearly smart

@balajis - this guy is from the future, and has come back in time to tell us what's going to happen
Read 11 tweets
28 Dec 20
I think @paulg accidentally predicted Bitcoin exactly 1 year before it launched..
Paul was giving a talk at startup school about the two most common bits of advice YC gives its startups:

1) Make something people want
2) Don't worry too much about making money

If you put those two together...

= non-profit
It was a joke wrapped around a nugget of truth.

Some of the greatest startups look like non profits initially.

Eg. Google did not look like it was going to become a trillion dollar company. It was a free search engine built by 2 PHd students with no business model. Image
Read 17 tweets
23 Dec 20
I doubled down on angel investing over the past 6 months.

Invested $600k in the past 6 months into 8 startups... for anyone interested in startup investing - a few standout companies and spaces
🇮🇳 INDIA - 2 of the co's were in India, I believe both will be $1B+

@mydukaanapp is building shopify for india (3M+ stores created in 5 months)

@wiseapplive gives teachers a digital classroom (to teach & earn money) that works even on 2G phones. 5x'd growth since we invested.
Remote Work -

I think there is both a huge opportunity AND a ton of garbage in this space right now.

Because 30M engineers all simultaneously experienced the pain points of remote work, and started building tools to solve it.

Lots of crap, but a few gems..
Read 16 tweets
21 Dec 20
Reading this article, the story sounds pretty wild. But I spent a weird amount of time with Martin Shkreli, and I’m not surprised the journalist fell in love w him

A few years back my team built an app called Blab. It was like clubhouse before clubhouse.
When he first joined the app I had no idea who he was. I just saw that his live streams instantly had 3-4K viewers. More than anyone on our tiny platform.

I googled him and it came up: “Martin Shkreli, most hated man in America”

I assumed he was bad news
And he was... but also he wasn’t.

He was a douchebag, but he was in on the joke. He was a dick, but he was also very entertaining.

In the mornings he would live stream himself analyzing stocks or walking through drug discovery pathways.
Read 9 tweets
21 Dec 20
So I thought the whole "paid newsletter" thing was dumb.

So naturally, I tried it out as an experiment.. The results were kinda nutty. The newsletter started bringing home $49k per month (!) -- Here's the backstory
"what was the newsletter about?"

Well - for the past year, I've been doing a podcast called My First Million. Gimmicky name, but whatever.

It's a pod where me and @theSamParr (and friends like @awilkinson @_jacksmith etc.) brainstorm business ideas based on trends we see
Anyways - the podcast has gotten pretty big. We do over 350k downloads/month.

People like listening to us shoot the shit, brainstorming ideas.

But as the nearest schmuck will tell you - ideas aren't shit without execution!

The problem is - execution is less sexy.
Read 17 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal Become our Patreon

Thank you for your support!

Follow Us on Twitter!