Ghost kitchens are shaping up to last well beyond requests for on-site shelter. According to data from Technomic, published by Restaurant Business Online, “sales through ghost restaurants in 300 establishments in the United States will increase by 25% annually over the next 5 years. As with any business line, the idea that it will work isn't necessarily widespread. Along with a list of advantages, there are drawbacks to consider.
In the end, however, the advantages are proving to outweigh the disadvantages. However, while this allows cloud kitchens to access a wider market, it also has some negative consequences. American food aggregators such as DoorDash, Grubhub, etc., charge a commission of 15 to 30% on the total value of the order. Therefore, the high fees that kitchens pay to delivery partners reduce a very small margin.
Having a strong presence on social networks, as well as investing in search and display ads, are key factors that determine the success of ghost kitchens. Ghost restaurants work completely online, allowing customers to place orders through third-party delivery services, such as GrubHub, DoorDash or Uber Eats, and receive their food without any direct contact with the ghost restaurant itself. China currently leads the pack with 7,500 ghost cooking establishments, followed by India with 3,500 and then the United States. On its website, 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.
Either way, anyone can cook their hamburger, tacos or pizza anywhere, which makes the ghost kitchen concept so lucrative and attractive to owners and investors. More and more often, the food you order from a home delivery application is prepared by chefs who work for a restaurant that doesn't really exist, at least not in the traditional sense. He created Seaside, a ghost kitchen concept that operated at Oyster Bay and that served ribs and fried chicken. Ghost kitchens also have a distinct advantage, since they cater to a large fan base of this generation, since they work online.
Rather than shutting down their businesses completely, restaurateurs can meet consumers' high demand for home delivery with a ghost kitchen. Anyone can cook their hamburger, tacos or pizza anywhere, which makes the ghost kitchen concept so lucrative and attractive to owners and investors. Many restaurants that venture off-site through ghost kitchens partner with third-party delivery aggregators, such as Uber Eats, Grubhub and DoorDash, because they simply don't have the bandwidth needed to launch their own delivery service. Take Local Culinary as an example, a ghost kitchen company that operates more than 40 virtual restaurant brands with generic names such as Chef Burger or Pizza Mania.
Ghost kitchens are perfectly suited to the current scenario, as they are the most efficient and cost-effective food service. Not all ghost kitchen businesses are inherently exploitative or obsessed with profits over labor; in fact, some may even be responsible for saving independent restaurants that might otherwise have gone bankrupt during the most difficult moments of the pandemic without earning additional income. Ghost kitchens are an example of the resilience of restaurant owners around the world in the face of a global pandemic.