By Mykie Concepcion, Contributor
Everything nowadays seems to be available online. From buying kitchen equipment online to home office furniture and clothes, it is no surprise that the consumers' online ordering habits extend to the food they eat.
Although food delivery options have always been available before the COVID-19 pandemic, online food ordering has surged throughout the crisis, changing the food industry's way of meeting consumers' demands forever.
Even though on-premises restaurant dining has resumed in countries like the U.S., food delivery is still gaining traction, as 60% of consumers continue to order delivery or takeout at least once a week. To keep up with consumers' demand, current and upcoming restaurants can thrive through a ghost kitchen model.
First, let us define what a ghost kitchen is.
A ghost kitchen is a professional food preparation and cooking facility set up to prepare meals for delivery only. Some ghost kitchens have allowed takeout or have drive-throughs, but the common denominator is that they lack storefront and indoor seating for customers.
How Do Ghost Kitchen Models Work?
A ghost kitchen needs to meet a virtual restaurant's operational requirements—a licensed brand or concept, a commercial kitchen space to rent, visibility on a delivery app(s), coordinated labor, delivery supplies, and ingredient ordering.
Ghost kitchens rely not only on the online delivery apps that have made them adaptable to change. More and more entrepreneurs choose to rent out kitchen space to other brands, effectively acting as a coworking space and food producer incubator.
What are the Benefits of Starting a Ghost Kitchen?
Taking Advantage of Food Delivery Growth
The creation of ghost or virtual kitchens is a byproduct of a rising need for express food delivery due to the COVID-19 pandemic and with almost everyone practically indoors. A ghost kitchen will better meet your consumers' demands without affecting business at any physical storefront or location.
Maximizes Available Resources
If a restaurant has a ghost kitchen, they can make more food concepts targeting the delivery-only demographic by reusing ingredients they already have for their restaurant menu. You can also move old appliances like an induction or gas cooker to the ghost kitchen or purchase more affordable and durable kitchen appliances.
Low Costs
Staffing costs and compliance with ever-stricter labor laws are two of the most difficult challenges for restaurant owners. Ghost kitchens can take advantage of on-demand labor easily without worrying about service staff.
When compared to traditional restaurants, the barrier to entry for ghost kitchens is lower. They theoretically incur lower costs because they do not require any front-of-house operations, floor space for seating, or high rents for prime location storefronts with high foot traffic.
Better Efficiency
Ghost kitchens can run very efficiently by using custom-built spaces and optimizing their processes specifically for delivery. You can batch-prep ingredients for several different menu options and design the space to prioritize the speed of preparation and the process of handing over the food for delivery to drivers.
Access to User Data and Real-time Adaptability
Ghost kitchens can optimize processes, ordering, and staff schstaff schedulingduling based on consumer behavior because they are built with technology in mind. The menu can also be adjusted to meet demand and increase margins.
Since you are not tied to a physical location, you can change the menu or operating hours to suit business needs without affecting customer satisfaction as much. This can also help to reduce food waste because you can make better ordering and preparation decisions.
Expands Food Business Reach
Rather than marketing themselves, ghost kitchens or virtual restaurants gain quick exposure through delivery apps. Although the concept will have to pay for increased visibility, it is still less expensive in the long run, especially if you are creative in building your brand.
For those hoping to expand to other areas, partnering with ghost kitchens can help you reach more customers.
The Virtual Takeaway
Thanks to advancements in technology and consumer habits, there are now more opportunities for food entrepreneurs who wish to open a virtual restaurant or a commissary kitchen. Depending on the business, restaurant owners should look at industry trends such as ghost kitchens and see how they can improve their approach and innovate how they meet their customers' demands.
About the Author:
Mykie is a marketing professional from Smeg Philippines, an Italian kitchen appliance brand. In her free time, she enjoys channeling her creativity through writing about home, lifestyle, and food trends.
