The COVID-19 pandemic turned our lives upside down in many ways. It brought about huge changes in business and society. One sector that was greatly impacted by the pandemic was the restaurant industry. While the concept of ‘ghost kitchen’ or ‘virtual kitchen’ has been around for many years, it picked up during this time. Many traditional restaurants switched their mode of operation to virtual kitchen format to stay afloat during those uncertain times.
What are Ghost Kitchens?
A Ghost Kitchen is a facility where food is prepared only for takeaway or delivery purposes. No dine-in facility is available at the premises.Most businesses list themselves on food delivery apps such as UberEats, GrubHub, DoorDash, etc. to receive the orders. Third-party delivery service providers help execute the orders. The kitchens can also opt to receive orders on the phone or through their personal website.
Future of Ghost Kitchens
The COVID-19 pandemic has ended, and the restaurant businesses are back to functioning like before. Considering the wide popularity and success of the virtual kitchen model during this phase, it is safe to say that it is here to stay. Many big players are entering this space to optimize this opportunity. This business model is expected to grow hugely in the next decade.
Factors Contributing to the Success of the Virtual Kitchen Model:
1. Lower Cost of Starting Business: While many existing restaurant owners have shifted their businesses to this model, it has also seen many new players. The cost of starting the business is considerably low when compared to the traditional business model.
2. Space Optimization: An advantage of this model is that the kitchen spaces can be shared by multiple businesses. Also, individual operators can create multiple brands from the same space.
3. Standardization: Creating standardized processes for cooking as well as delivery is key to the success of this model. Timely and efficient delivery with consistent taste will have the customers coming back.
4. Online Presence: Operators must focus on creating a brand image in the minds of the customers. Having a social media presence and a website helps establish a direct connection with the customers. It is key to creating brand loyalty and offering better customer service.
5. No Need To Be In a Prime Location: Unlike traditional restaurants ghost kitchens need not be in a prime location with an attractive storefront. It saves a lot of operation costs.
6. Lower Staffing Needs: A ghost kitchen operates with just kitchen and delivery personnel eliminating the need for front desk staff, busboys, waiters, etc. It saves cost and management time.
7. Lower Overheads: Elimination of the dine-in space helps get rid of many overheads that occur in maintaining the space. The lower overhead expenditure can be directed towards quality and efficient marketing of the brand.
Hindrances to Success - here is what may make it hard for ghost kitchens to find, and retain success:
1. High Competition: Choosing menu items that are being served by other competing brands is detrimental to the success of the business.
2. Depending Solely on Aggregator Sites: Another mistake committed by ghost kitchen operators is depending solely on food delivery apps. It is important to work on creating a brand image and to have a personal website or app to receive orders.
3. Being Inflexible: The operators should be quick to study the patterns and behavior of the customer and be open to making changes to the business. It is the only way to stay relevant in this highly competitive space.
4. Inefficient Management: A high