Ghost Kitchens had proven their potential even before the pandemic outbreak, and with the execution of the new safety and health protocols, it appears to be beneficial to all restaurateurs and to those aspiring to be one as well.
Also known as Virtual Kitchens and Cloud Kitchens, Ghost Kitchens is a business model born out of the need to meet the increasing demand of customers for online ordering and food delivery. This type of establishment provides the complete kitchen set-up with high-quality equipment for restaurant businesses. It focuses on production of the food item which leads on a restaurant business to cope with the demand.
There are apparent advantages and disadvantages for this type of business model, and in this feature we’ve gathered all the benefits you could enjoy should you choose to explore your concept with this business model or try to adopt this with your existing restaurant business.
Benefits of Ghost Kitchens for New Restaurateurs
- The Opportunity to Try out a Fresh Concept to Offer
If you’re new to the field, Ghost Kitchen would be beneficial for your restaurant business as you have the chance to prove your concept. And given how this type of business model operates, you’ll have more time to focus and think through with your concept before you offer it to the world. By doing so, you’ll have a better understanding of your concept and you’ll be able to operate it to its highest potential.
- Lower Overhead Costs
The concept of Ghost Kitchens is to provide a functional kitchen for restaurants without worrying about the costs for additional labor, renovation costs, and other basic costs that you need to watch out if you’re building a traditional restaurant. With Ghost Kitchens, you can just center your attention on the production costs, ingredient costs, and delivery costs.
- Reduced Labor Costs
Since its core focus is to produce delivery-orders, Ghost Kitchens helps a new restaurateur to reduce labor costs by not requiring to hire unnecessary staff. There will be no need for a front-of-the-house team because this business model is not supporting dine-in concept and focuses only with delivery or take out service only.
- Ownership of all Customer Information and Gathered Data
Some of the Ghost Kitchens available give you the freedom if you want to operate with your own delivery service or if you want to partner up with a 3rd-party app. Just make sure you weigh the pros and cons first before you make a decision.
Most of the third-party apps have huge cuts with your sales and their fees will surely impact your business negatively. However, you don’t have to think about marketing as they will do it for your brand.
And if you choose not to be a partner of any of these apps, you will appreciate the control you have over your business. All the creative and marketing freedom will be given over you, and you own your customers since they deal with you directly.
- Greater Revenue
This is no surprise, with all the unnecessary costs being cut, it only leads to you gaining a better revenue. Ghost Kitchens allows you to capitalize over the growing demand for online and delivery service.
And even though you’re just a starting restaurateur, this concept will speed up your success in the market because you’ll be catering to a generation that exists digitally and completely rely on what is available online.
Benefits of Ghost Kitchens for Existing Restaurants
- Existing Functional Staff
Adopting the Ghost Kitchen principle with your existing restaurant will not be complicated because you already have an existing staff to support your new venture. And these staff are no ordinary staff, they are experienced and well-trained with restaurant operations.
Though there would be adjusting periods for them since Ghost Kitchen has a different workflow compared to traditional restaurants, having a reliable staff to back you up will benefit you as a restaurateur exploring a new business model.
- Increase with Revenue
Seems like Ghost Kitchen is a good way to do business nowadays, whether you’re new to the Restaurant Industry or you’re converting your existing business, it always ends up to your sales having an incremental revenue.
Restaurateurs will enjoy this growth because of all the reduced costs, and since the operation will be production-focused, the operation will be faster and more flexible which leads to meeting the demands. And meeting a high demand means you’re also converting those demands to your profit.
- Utilize and Maximize the unused portions of your Operation
If you’ll be operating in your old kitchen instead of moving to an official Ghost Kitchen while adopting its system, you’ll be able to use your space to its highest potential.
You can employ such space as your storage room or additional preparation room. You may also convert it to a room which you can use for overnight preparation or function. All these conversions would still help you save up costs instead of doing a whole renovation of the place, and it’s one way to maximize your rent or lease of the space.
- Freedom to Try Out New Concepts
Though you already have an established concept and menu, with Ghost Kitchens, you’re not limited to just offering one. As long as you can gain and serve the demands and interests of your local community, you’re free to formulate new concepts and offer them different cuisines.
It’ll be a good thing for you because you’ll be able to capture a broader customer base, boosting your confidence on your concept and the sales for your restaurant business.
- Learning Opportunity
Ghost Kitchens provide learning opportunities for you, as a restaurateur, and for your staff as well. For you, you’re given the chance to make new concepts, and you’ll have a better grasp of the management since you’re focused on your restaurant’s core production.
For your staff, since the need for staff with this business model is minimal, it’ll require them to be versatile and flexible. They should be trained to fill certain roles to keep the restaurant or the kitchen functioning.
Subscription meals and meal-kits are only some of the growing food trends and concepts that only show how the demands and spending habits of the modern diners are quickly changing – especially regarding online food ordering systems.
Be it you’re dreaming of becoming a restaurant owner or you want to continue running your restaurant business, in order to achieve your goals, you should have good knowledge with the new venture you’re entering.