Franchises are Building Ghost Kitchens
In our recent article, What are Ghost Kitchens, we dove deeper into explaining these QSR industry disruptors.
As of recently, there has been news of large franchisors such as Chipotle, entering the Ghost Kitchen sphere.
Since then, there has been multiple reports and news findings of restaurants such as Chilis, Chuck-E-Cheese, Maggiano’s, and more, all experimenting with the Ghost Kitchen Model.
Recently, a DoorDash driver went viral over Tiktok by explaining that even ‘local’ Ghost Kitchen restaurants on UberEats are actually owned by large franchises.
This exposure not only angered consumers who are looking to ‘shop local’ but it exposed large franchises experimenting with Ghost Kitchens under alternative names.
Franchises in Ghost Kitchens
As described in the article, Ghost Kitchens such as Pasqually’s Pizza and Wings, Chicken Wing Delivery Restaurant, and even Mr. Beast Burger, are all reportedly Ghost Kitchens owned and operated by Franchises.
With that being said, it is amazing to see national franchises utilizing the Ghost Kitchen model.
It is unclear if they are testing the waters before converting their master franchises into Ghost Kitchens, or if they are simply looking to do both.
Either way, the fact master franchises are dabbling in Ghost Kitchens is a huge win for the industry.
This means that more Ghost Kitchens will be opening, either from independent owners or franchises.
This could possibly mean a revitalization of the restaurant industry, that has taken a huge hit since COVID-19.
As over 75% of businesses in America are restaurants, it is vitally important this industry finds a way to adapt, survive, and thrive.
As Ghost Kitchens are expanding, certain states have passed laws to protect these businesses.
An obstacle with Ghost Kitchens is third-party delivery and the high fees associated.
These delivery fees are costly to restaurants, and often reflect poorly on businesses instead of the delivery services themselves.
As a result, certain states have capped the delivery fees associated with UberEats, Postmates, and similar services.
Both customers and restaurants greatly benefit from this legislation.
As these laws will give money back to the restaurants who pay for delivery, it also incentivizes customers to purchase more frequently.
As delivery fees are one of the most frustrating aspect about ordering from home, these new laws will bring more money to the economy, by allowing both restaurants and customers to reap the benefits of such laws.
Conclusion to Franchise of Ghost Kitchens
It seems apparent master franchises will continue to move towards the Ghost Kitchen model, whether it be through a subset of restaurants or through their recognizable brands.
This can greatly benefit the QSR economy, which has been negatively affected during COVID-19.
As the restaurant industry is being affected more than other industries, Ghost Kitchens may be the perfect way to revitalize QSRs.
If you are interested in learning more about Ghost Kitchens, and how your business can transform into such, you may book a free demo with one of our experts here.