Ghost Kitchens - Pros & Cons

What are Ghost Kitchens?




Ghost kitchens (aka dark kitchens and cloud kitchens) minimize the costs of rental space, staffing, and menu engineering by condensing the restaurant model to accommodate off-premise food & beverage sales. Instead of having guests dine in-house, deliveries made by the restaurant or by a third-party service are the main operating method. This newly established model enables the push for restaurant cost structures toward delivery rather than in-person dining and customer-facing, and the lean team of staff that comes with a delivery-focused model can significantly bring down rent and labour costs for restaurants. Ultimately enabling operators to grow their margins.


There are a few key reasons why experts in this field predict that the ghost kitchen model would thrive in 2020.


  1. Online ordering and delivery have been growing 300% faster than dine-in traffic since 2014.

  2. In 2019 alone, 20% of US consumers used food delivery at least once a week.


According to Technomic, sales made via ghost restaurants from 300 facilities in the United States will rise by a projected 25% each year for the next 5 years—an estimated $300 million in yearly sales. For this reason, ghost kitchens could be a new solution for the currently struggling industry, especially with the pandemic.



Pros and Cons of a ghost kitchen


Pros


Lowering overall costs: Without a physical storefront, ghost kitchens can reduce all overhead costs associated with buying or renting a commercial space. If any adjustments are to be made to your menu, there is no need to re-print physical copies. Just make the edits online and announce the changes on your socials, that’s it.