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What Are Ghost Kitchens?

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Ghost kitchens are not only changing the future of QSR, but they can be considered industry disruptors who are stealing the attention of restaurant franchisors

 

For those who don’t know, ghost kitchens received this name due to their low profile.


These restaurants do not hold patrons, guests, servers, or even traditional managers.
 

Ghost kitchens hire minimally by only supplying culinary staff and the means to deliver products to customers.

 

The Ghost Kitchen Business Model 


The strategy behind ghost kitchens can be broken down into one word: minimal. 


The ghost kitchen business model focuses on revenues by cutting down employees and other staff as much as possible. 


By doing so, the culinary team can focus on what they do best. 


With Ghost Kitchen business models, sales are conducted virtually through third-party delivery services such as UberEats or Postmates. 


By conducting all sales online, customers can have the culinary experience from that particular restaurant while staying in the comfort of their home. 


Not only is the Ghost Kitchen business model self-sufficient, but it is also low cost.
 

The buildings that host ghost kitchens can be considerably smaller than those of traditional restaurants. 


Because there is no need for seating, parking, or employee officesReal estate options for Ghost kitchens can be much cheaper than other restaurants. 


This cuts overhead costs for owners dramatically. 


Being the kitchen and culinary staff are the only salaries being paid, more money can be reinvested back into the business. 


In summary, ghost kitchens are smaller restaurants that only hire minimal culinary staff to help create cuisines to be delivered through third parties. 


The business model of ghost kitchens focuses on minimizing costs and maximizing sales through third-party delivery services. 

 

Multi-Brand Ghost Kitchens

 

Ghost kitchens have been taken one step further, by the creation of multi-brand ghost kitchens. 

These have a similar business model as ghost kitchens. 


They are minimal, low-cost, and maximize sales through third-party delivery services. 


This concept is amazing for owners, as the cost of rent, utilities, and resources can be split between multiple business owners. 


Additionally, these kitchens hold value to customers, unlike any other restaurant.  


Because they offer multiple menus under one roof, customers have the ability to choose between amazing options, with one streamlined delivery fee. 


Customers of these kitchens can purchase from multiple menus, then incur one streamlined delivery fee from their thirty-party app of choice.


This allows for the customer to have various options, while only paying one price for their order and delivery. 


Ordering from multiple vendors is one of the most frustrating aspects of ordering from home. 


Ghost kitchens use a business model that eliminates that hassle from consumers. 


Not only can families cater to all tastes and preferences, but customers can save money while experiencing delicious options. 

 

The Future of Ghost Kitchens

 

With ghost kitchens, staffing is minimized and profits are maximized. 


Because of this low-cost business model, franchisors and industry experts are becoming increasingly focused on ghost kitchens. 


Especially as the 2020 pandemic continues, will ghost kitchens slowly replace traditional dining? 


These are questions franchisors are asking, so these are the answers Franpos is going to report. 


As we strive to keep our customers and readers updated on the latest industry trends, we hope you have found value here!

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Franki Deckert
Francesca (Franki) is a Growth Marketing Consultant at Franpos. Based in Atlanta, she is specialized in creative campaign curation and strategic implementation.
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