In the restaurant industry, the concept of a ghost kitchen is becoming increasingly popular. A ghost kitchen is a physical space for operators to create food for consumption outside the facility. It is designed to reduce unnecessary costs and increase efficiency. Rent is low and the efficiency is high, making it an attractive option for restaurateurs looking to expand their business.
In apps like Grubhub and DoorDash, listings of restaurants that operate with ghost kitchens don't usually look different from physical establishments. For example, Rocco's Ravioli appears on these apps, but it has no shop window. It is a food delivery service that makes food in a ghost kitchen. Ghost restaurants (also called dark kitchens, virtual kitchens, cloud kitchens or headless restaurants) are becoming more common.
They differ from traditional restaurants in that they have no seats, shop window or waiters. Operating a ghost restaurant can help restaurateurs diversify takeaway food options while remaining open and serving guests during this pandemic. Ghost kitchens are essentially restaurants with no space to eat. Its purpose is to sell and fulfill orders for food online for delivery using third-party applications such as Grubhub, UberEats and DoorDash, or with its own delivery operation. As a result, they usually don't have a visible showcase. Ghost kitchens offer opportunities for aspiring restaurateurs to get involved, facilitating market entry and minimizing risk.
Established restaurants are also taking advantage of this opportunity to stay agile in a fluctuating market. This article will review what ghost kitchens are and what implications they have. Ghost kitchens are one way restaurants can take advantage of the boom in home orders without wasting money on unused dining space (and all the costs involved in maintaining it). For example, Seaside is a ghost kitchen concept operating in Oyster Bay that served ribs and fried chicken. Even national chains such as Chili's and Applebee's used ghost kitchens to maintain cash flow and try new menu dishes with different brands in case the ideas failed. Small food operators used ghost kitchens to gain a foothold in the market at a time when opening a standard restaurant with a dining room would have been unthinkable.
Virtual Dining Concepts states that restaurants that install ghost kitchens to operate one or more of their brands can expect a 30 percent increase in profits. So, while it remains to be seen if ghost kitchens are truly the future of restaurant operations, for the time being, they offer a very unique option for existing restaurants and a low entry threshold for aspiring restaurant owners. Since customers adapt to the trend quickly and easily, ghost kitchens are likely here to stay. Here are some of the pros and cons that both restaurant owners and their customers can expect from ghost kitchens.
- Low overhead costs: Ghost kitchens require less investment than traditional restaurants since there is no need for seating or wait staff.
- Flexibility: Ghost kitchens allow restaurateurs to experiment with different menu items without having to invest in additional equipment or staff.
- Increased profits: Ghost kitchens can increase profits by up to 30 percent due to lower overhead costs.
- Limited customer interaction: Ghost kitchens do not provide customers with the same level of interaction as traditional restaurants.
- Competition: Ghost kitchens can create competition between traditional restaurants and delivery-only services.