Updated: Oct 16
How Ghost kitchens Are Giving Rise to 3rd Party Mobile Smart Kitchens
Is Ghost Kitchen Is Here To Stay?
An article in Restaurant Dive discussed a recent report from Euromonitor which said that ghost kitchens could be a $1T global market by 2030: "Ghost kitchens, or cooking facilities that produce food only for delivery with no dine-in or customer facing areas, could create a $1 trillion global opportunity by 2030.
"Ghost kitchens could be a $1T global market by 2030. And it could create a $1 trillion global opportunity by 2030"
2020 has been equal parts terrifying, mystifying, and heartbreaking for restaurateurs across the U.S. which interns gives rise to the birth of Ghost Kitchens or virtual kitchen. The future of the restaurant landscape will be changing, and likely much faster than most operators are currently ready for.
Whata Heck Are Ghost Kitchens or Virtual Brand?
Ghost kitchen are virtual brands. A virtual restaurant brand is a delivery-only food concept that is sold exclusively online and through delivery apps. As opposed to a ghost kitchen, virtual restaurants do not rent from third parties. Ghost kitchens capitalize on the shift of customer behavior towards online ordering while reducing the costs associated with traditional brick-and-mortar restaurants. That’s the beauty part.
Ghost kitchens are kitchens designed for delivery-only businesses, without dine-in areas or customer facing storefronts.
Why The Food Delivery is Exploding?
Because food delivery is exploding, Ghost Kitchens Becoming So Popular. Ghost kitchens are taking a lead at the future of food lies in delivery. Most restaurants lose money when they use delivery apps, ghost kitchens want to be a solution to fix the problem. Ghost kitchen is effective because there is no physical space for customers. Orders are made in one location, picked up by a delivery driver, and enjoyed off-premise. To get started, ghost kitchen has a low cost of overhead. Leasing and equipping a commissary-style ghost kitchen is a bargain compared to building an entirely new restaurant but using your existing equipment costs almost nothing to get started.
"Ghost restaurants operate entirely online, allowing customers to order through third-party delivery services."
Is The 3rd Party App Delivery Commission Fees is Killing Restaurants?
Ghost restaurants operate entirely online, allowing customers to order through third-party delivery services, like GrubHub, DoorDash, or Uber Eats, and receive their food without any direct contact from the ghost restaurant itself. The combination between increasing demand for food delivery, exploding digital marketing power is what behind the driving force of the ghost kitchen boom. The delivery market is booming because the increased demand for food delivery. Instead of paying 10% to 30% in delivery commission fees to 3rd party apps, restauranteurs can lease ghost kitchens and hire gig economy workers to make deliveries.
"As a business owner, you will need to spend a considerable amount of time weighing the pros and cons, considering factors specific to your business, and learning about potential pitfalls."
Where Do You Go from Here for Business Owners?
Again, 2020 has been equal parts terrifying, mystifying, and heartbreaking for restaurateurs across the U.S. Post pandemic, more and more people are opting for delivery, rather than a sit-down meal. In hospitality industry, trends are constantly changing, meaning restaurateurs need to be in-the-know to stay afloat.
"As a General Manager and Brand Marketer, I have seen trends come and go. But there is one thing that is always certain is customer experience is a key for good business brand."
As a business owner, you will need to spend a considerable amount of time weighing the pros and cons, considering factors specific to your business, and learning about potential pitfalls. If you’re able to successfully launch a virtual brand out of your own kitchen, then a ghost kitchen could be a great next move. If your brand reputation, customer experience, and brand image is important to you, then you need to re-think your marketing.
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