Ghost Kitchens are a new phenomenon of restaurants that offer multiple restaurants/menu options from one centralized kitchen.
While hiring as few employees as possible, these new-age restaurants have a low-cost – high-volume business model.
Ghost Kitchens spend as little money as possible on rent, parking, and the number of employees.
Instead of paying for large elaborate dining spaces, Ghost Kitchens do not offer indoor seating.
Ghost Kitchens only offer dining through delivery services such as UberEats, Postmates, and more.
Because of a lack of in-person dining, Ghost Kitchens have the ability to pay minimum operation costs while maximizing sales.
Due to COVID-19 restrictions eliminating in-person dining experiences, Ghost Kitchens are an amazing loophole around dining curfews and restrictions.
Written below is a ‘story’ about how owners in 2021 can benefit from Ghost Kitchens.
Owning a Ghost Kitchen
Owning a Ghost Kitchen is considerably cheaper than most restaurants.
Because Ghost Kitchens have a low-cost-high-profit model – they are considerably more manageable in cost than other establishments.
Compared to traditional dine-in restaurants, Ghost Kitchens have 80-90% fewer employees.
Additionally, the rent and space needed for Ghost Kitchens are minimized to the kitchen itself.
This eliminates the need for servers, managers, cleaning staff, and interior decorators.
This low-cost model allows for profits to be maximized, as all focuses are on the food itself.
Ghost Kitchens have a considerably smaller start-up cost than other restaurants.
As branding assets, staffing, parking, and dine-in spaces are essentially eliminated – Ghost Kitchens are relatively cheap to launch.
This allows for Ghost Kitchens to be extremely attractive to franchisors and restaurant owners.
As the start-up costs are low, it only makes sense that the cost to franchise would be much lower than other establishments.
Especially as COVID-19 continues to enforce closures in the QSR space – Ghost Kitchens are a quick and reliable solution.