Everything You Need to Know About Ghost Kitchens
During the pandemic, food delivery services experienced an all-time high. In fact, due to the rising popularity of the food and market delivery industry, over $2.7 billion has been invested in ghost kitchen developments. It’s undeniable that ghost kitchens have changed the industry and made a lasting impression.
At DMD Restaurant Consultants, we are industry experts and here to help you become successful food and beverage business owners. So whether you want to open a restaurant franchise or create your own ghost kitchen, we’re here to help you every step of the way. However, before you decide to open up a ghost kitchen, keep reading to learn more about them and figure out if it’s right for you.
What Is A Ghost Kitchen?
Ghost kitchens, also known as dark kitchens, cloud kitchens, virtual kitchens, and shadow kitchens, operate solely on deliveries. Because they only offer delivery, there’s no brick-and-mortar restaurant or location for diners to visit. When it comes to ghost kitchen operations, there are two teams: cooks and delivery drivers. Once an individual places an order, the chefs prepare the food, and delivery drivers, or courier companies, deliver the food.
How Do Ghost Kitchens Work?
The restaurant industry is ever-evolving, and ghost kitchens are still improving daily to keep up with the competition. So, there isn’t one way that people operate ghost kitchens.
Some ghost kitchens rent a commissary kitchen where multiple virtual kitchens operate in the same space but work independently. Others will rent out restaurant kitchens that already have the space and equipment needed to operate. Even though the restaurant kitchen has a fully functioning sit-down area for diners, it functions separately from the ghost kitchen, and the ghost kitchen doesn’t use this dine-in area.
There’s also something called “hidden ghost kitchens,” where sit-in restaurants open up delivery-only restaurants. Hidden ghost kitchens mean that a ghost kitchen uses the same kitchen space as its parent restaurant, allowing brick-and-mortar restaurants to expand their clientele without investing in more kitchen space. For example, a restaurant that serves burgers can open up a hidden ghost kitchen that offers vegetarian options, but they use the same kitchen space.
Another type of virtual restaurant is where large franchises open delivery-only versions of their restaurants. By doing this, customers who don’t have a sit-in or drive-thru restaurant nearby can still enjoy their favorite food through an online ordering platform.
Benefits of Ghost Kitchens
Ghost kitchens are immensely appealing to restauranteurs because, in many ways, they’re more affordable than opening a physical restaurant. Some of the benefits of starting a ghost kitchen include:
Low Overhead Costs
Studies have shown that the startup costs of an average restaurant are roughly $425,000. So, eliminating the need for a dine-in space could save tens of thousands of dollars.
Launch Quicker
Another benefit of ghost kitchens is launching your business much quicker than a traditional restaurant. Essentially, all you need to operate is a kitchen, and you can rent existing kitchen space from a brick-and-mortar restaurant.
Reduced Food Waste
The opportunity for error is significantly reduced with virtual kitchens because customers can review their order and make sure it’s correct before purchasing. Plus, as a virtual kitchen, you’ll probably offer a limited menu, so you’re not stocking up on unnecessary ingredients.
Flexibility
As a ghost kitchen, it’s easier for you to adapt to customer preferences and adjust as needed when the market shifts.
How To Start A Ghost Kitchen
If you’re interested in opening a ghost kitchen, there are some basic steps you need to follow. To have the best chance of success, make sure to:
Conduct Research
Make sure to create a business plan, conduct market research, and ask other ghost kitchen owners for advice. It’s always helpful to ask them what they would do differently and what they would do the same.
Create A Concept
With a saturated market, you need to make sure that you stand out from the competition. During this stage, it’s also critical to think about how you’ll make your food to-go friendly.
Find Your Kitchen Space
Whether you rent a commercial kitchen space or work out of your own facility, make sure you have a location equipped with all of the necessary equipment and plenty of room for you and your team to operate.
Develop A Marketing Plan
Once you’ve established your company’s concept and brand, it’s time to develop a marketing strategy. Because you’ll be operating solely online, you must consider digital advertising, social media marketing, and an online website.
Open Up A Successful Ghost Kitchen With DMD Restaurant Consultants
Being in the food business is no easy feat, and having an experienced restaurant consultant on your team will help ensure your success. So whether you have a brick-and-mortar restaurant and want to expand your reach by opening a ghost kitchen, or you’re a food truck owner who wants to take your business a step further with a ghost kitchen, we can help you reach your goals. From identifying your customer base to creating a virtual brand, we have the experience and resources necessary to help you become a successful ghost kitchen. Call us to set up a free consultation and learn more about how we can help!
