Ghost kitchens may be a new term for some, but as we continue to venture into new and exciting territory in the online ordering space, these kitchens may become the future of dining.
Here at Franpos, we love to stay ahead of the curve and provide our readers with the most valuable information available.
Here’s everything you need to know about ghost kitchens and how these restaurants may become the future of QSR.
What are Ghost Kitchens?
When you think of a ghost kitchen, your first thought may be of a particularly creepy, empty restaurant—and in a certain way, this is true.
Ghost kitchens are fully operational restaurants that do not have any dine-in seating or even space for walk-in to-go orders.
This means no customers arriving or departing, very little branding, and very limited staff.
Ghost kitchens operate solely through your favorite delivery services, such as Uber Eats or Postmates.
These kitchens minimize the cost of employees, managers, and even drivers when operating through a third party. They focus on fast, delivery-oriented operations and are very successful in densely populated regions.
Amidst the ongoing pandemic, the popularity of Ghost kitchens has skyrocketed and is only projected to increase over the next five years.
How a Lack of Dine-in Benefits Business Owners
Without dine-in, rental spaces are minimized to cover kitchen costs only.
This saves owners tons of money because rent in larger cities with tons of foot traffic is often exorbitant.
That being said, owners can now rent smaller storefronts in any area without considering dine-in traffic.
Without customers dining in, businesses can cut overhead costs and focus on locations tailored to faster delivery times.
Not only are these restaurants extremely lucrative, but the opportunity for expansions, partnerships, and innovations are endless.
One of the most lucrative opportunities ghost kitchens present is the ability to partner with other restaurants.
Owners of ghost kitchens often collaborate with other business owners—meaning that inside one ghost kitchen may be three other restaurants operating in the same space.
That gives consumers the option to order food from any of these restaurants—thus expanding their menu and increasing revenues for those businesses.
Multiple kitchens in the same location means that large groups, families, and picky eaters can all order off of multiple menus at the same location!
You are a family of four looking to order at-home delivery. Your wife is vegetarian, you’d like a steak, and your children would like pizza. Instead of ordering delivery from four different places, a ghost kitchen in your area may offer all of the above at one location.
Three different menus, one ticket, and one delivery.
These businesses are gaining revenues from their individual menus along with offering a variety of cuisine options for their customers.
With restaurants in partnerships, customers are more likely to repeatedly order from one ghost kitchen due to their high culinary variety. Repeat customers increase revenues—and, create customer loyalties long-term!
Modern consumer expectations skyrocket with each innovation and ghost kitchens enable business owners to stay ahead of the curve. By offering a wide variety of cuisine, along with one centralized delivery, ghost kitchens truly have it all.
And, with repeat customers, ghost kitchens enable owners to implement unified loyalty programs where customers receive rewards and discounts after reaching a certain amount of dollars or visits spent.
For example, every 10th visit from a Ghost Kitchen could include a free appetizer to incentivize customers to order more frequently.
Ghost Kitchens are leading the QSR industry due to reduced labor and overhead as well as the ability to collaborate and increase revenues with other restaurants.
This innovative new age concept is sweeping the streets of urban areas while providing customers quick varieties like no other.
Customers expect it all, and ghost kitchens have it.
These innovative restaurants are paving the way for the busy modern consumer.