Ghost kitchens have become increasingly popular in recent years, as they offer a unique way for restaurants to expand their reach and increase their profits. 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. While there are many advantages to setting up a ghost kitchen, there are also some drawbacks that should be considered. One of the main advantages of ghost kitchens is that they allow restaurants to access a wider market.
By partnering with third-party delivery services such as GrubHub, DoorDash or Uber Eats, customers can place orders without any direct contact with the restaurant itself. This can result in a 30 percent increase in profits, according to Virtual Dining Concepts. Additionally, ghost kitchens are perfectly suited to the current pandemic scenario, as they are the most efficient and cost-effective food service. However, there are some drawbacks to consider when setting up a ghost kitchen.
For example, American food aggregators such as DoorDash, Grubhub, etc., charge a commission of 15 to 30% on the total value of the order. This can significantly reduce the restaurant's profit margin. Additionally, having a strong presence on social networks and investing in search and display ads are key factors that determine the success of ghost kitchens. Without these elements, it can be difficult for restaurants to reach their target audience. In the end, however, the advantages are proving to outweigh the disadvantages.
Ghost kitchens are an example of the resilience of restaurant owners around the world in the face of a global pandemic. Rather than shutting down their businesses completely, restaurateurs can meet consumers' high demand for home delivery with a ghost kitchen. 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. Overall, ghost kitchens are shaping up to last well beyond requests for on-site shelter. While there are some drawbacks to consider when setting up a ghost kitchen, the advantages are proving to outweigh them.
With a strong presence on social networks and investment in search and display ads, restaurants can take advantage of this unique opportunity to expand their reach and increase their profits.