Ghost Kitchens or commonly known as Cloud and Virtual Kitchens are seen to be one of the only growth in the Restaurant Industry in this time of pandemic. As restrictions are now being tailored together with the resume of businesses, restaurateurs are now shifting their way to operate.
One of the proven and effective concepts is adopting the principles of Ghost Kitchen. Whether you’re a new restaurateur or someone who operates a brick-and-mortar restaurant before, it’ll be beneficial for your restaurant business to try out this business model.
WHAT IS A GHOST KITCHEN
Ghost kitchens are establishments that’s designed to produce meals for delivery and takeaway. It is a restaurant without a storefront, and its basic model doesn’t provide customers an area to dine in. It supports different brands and concepts of restaurants and is usually located in strategic delivery areas that are convenient for drivers and delivery service.
This business concept is designed for delivery, and with the current situation and changes in the market, it is no surprise that this concept is now being glorified more than ever. Here are what we’ve seen as the main reasons on why Ghost Kitchens are gaining popularity.
DEMAND FOR DELIVERY INCREASED
Even before there was an outbreak, there’s already a steady growth for food delivery. This is one of the main contributing factors that led the pioneers of Ghost Kitchens to build a business concept in order to meet this demand. And with all the new safety and health protocols being implemented to restaurants, it is expected that the new normal of operation would be optimized for food delivery, pick up, and drive through.
SIMPLICITY OF FACILITY
One main reason why Ghost Kitchens are being hyped is because it’s not complicated to set up. This facility promises lower upfront costs to start up restaurateurs. Also, as mentioned, this establishment has no storefront and they will provide the kitchen equipment and tools for you to use. You just need to work on the production of your food item, menu optimization, and marketing.
If you’re not in partnership with a third party app for delivery service, you also have to check out your in house delivery service. But it is still much easier and simpler rather than trying to operate a whole functioning traditional restaurant. And especially this time, restaurateurs are seeking for the simplest way and the most cost-effective way of running a business.
Ghost Kitchens also doesn’t require you to employ front end staff because it operates without the need for them. This makes the operation and work flow more productive and effective.
This is what attracts existing restaurateurs to shift into Ghost Kitchen or try to integrate its principles in their way of operations. Being able to operate in Ghost Kitchen will give you an added source of revenue that will help with the growth of your restaurant business.
This is mainly because while they’re operating a traditional restaurant, they’re also reaping the benefits of food delivery service. And since there are no restrictions in concepts for this type of business concept, it adds value and profitability to your existing kitchen.
FREEDOM IN TERMS OF CONCEPT
Ghost Kitchens will not limit your restaurant business with a single type of concept, should you wish to try another concept and adopt it with your existing one, you’re free to do so. This gives restaurateurs an opportunity to operate with a broader customer base and meet a different set of demands from the local community.
Restaurateurs, since they hold their freedom in conceptualization, they can launch a new business without having the need to build a different restaurant as a whole. If you’re planning to serve a new set of cuisine, you are free to do it with Ghost Kitchens. All they have to do is to integrate the new concept and optimize the menu for it. This can be done through an app or better check with your Ghost Kitchen operator on how they process such matters.
This type of business concept allows you to expand in certain markets without the need of an added capital or costing you too much money. It enables a restaurateur to operate and manage different concepts as long as you can handle the production of the added demand on your food product.
It is like operating a restaurant inside a restaurant, the potential of growth for your restaurant business will be immeasurable. Just make sure to do proper market research first, to know what are the other demands or customer segments you can serve within your covered local community.
BACKED UP BY BIG NAMES
One last thing that adds up to the increasing popularity of Ghost Kitchens is that it’s being backed up by established companies and established personalities. Businesses are seeing a good future with this concept that’s why they’re trying to invest with this business concept.
To name a few, here are some of the big companies that decided to back up the ghost kitchens ventures :
- Google Ventures ended up backing Kitchen United.
- Ex-Uber CEO Travis Kalanick helps to start up Cloud Kitchens
- Amazon funded Deliveroo
- Corey Manicone co-found Zuul Kitchens
If these known businessmen are attracted to invest with this type of business model, it is just right to justify the integrity and effectiveness of this concept.
The Restaurant Industry was caught off guard by this situation, the collapse of the market made it look like it’s impossible to escape. But with all the technology and resources being provided by the current situation, restaurateurs were forced to acquire different business concepts that would help them chase every sale they can produce.
Let us show that it’ll never be too late to try out something new and to start over, as with UK online ordering apps. It may have its own share of risks, but what we aim with this article is to show aspiring and existing restaurateurs how the concept of Ghost Kitchens can help them achieve their goals of operating a business inside the Restaurant Industry.