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