outsourcing

3 Benefits of A Ghost Kitchen

As governments around the world restrict restaurants from dine-in operations, many business owners turn to ghost kitchens in order to stay open. A ghost kitchen doesn’t have a physical place for its customers, as it operates as a delivery-only restaurant. This means that these establishments heavily rely on food delivery companies such as GrubHub, DoorDash, Uber Eats, and the like. 

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Since the sales of delivery companies increase year after year, it’s only a matter of time that delivery-only restaurants emerge.  Everyone from established restaurants to aspiring startups is getting in on the action because of its minimal costs, incredible margins, and growth potential. 

Here are three reasons why now is the perfect time to venture into the ghost kitchen business. 

  1. Food delivery is booming.  The way people obtain food has changed as restaurant businesses are being shaped by technology. Especially in the time of COVID-19, people are spending less time going to restaurants and spending more time ordering online. In fact, 52% of adults say that ordering takeout or delivery is essential to their everyday lives.

  2. Optimized food costs. Unlike most restaurants that offer a diverse menu, ghost kitchens operate on smaller, limited menus. A smaller menu is optimized for the delivery experience, which allows you to eliminate items that aren’t suited for travel. Smaller menus also mean simple purchasing, a more streamlined production, and a more precise margin. 

  3. Reduced labor costs. Restaurants usually keep their labor costs percentage between 20% and 30% of gross revenue. However, in a ghost kitchen setup, those numbers can be much lower. Since a ghost kitchen doesn’t require a physical place, you don’t have to hire waiters nor a cleaning staff. You can have your entire team in a medium-sized space, and still, be able to meet your customer’s demands. Another way to reduce costs is through Facebook and LinkedIn.




Trust as an Important Element in Business Outsourcing

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Outsourcing means tapping a third-party provider to help you with your company’s tasks. Outsourcing gives many benefits to companies, such as cutting costs and saving time. However, only a few companies recognize the importance of trust in the process of outsourcing. Trust is quite harder to foster in outsourcing, especially when most scenarios don’t allow you to meet your service provider and staff face to face. Nonetheless, developing mutual trust is important to establish a good relationship with your outsourcing provider and offshore teams.

Here are reasons why trust is important in outsourcing:

1. Creating a Strong Bond

Outsourcing failures arise when there’s a weak bond between you and your outsourced staff. Improve working relationships by initiating activities and creating opportunities to get to know your team. Team building activities are a great way to encourage camaraderie and improve working relationships. Consider planning a trip to visit your virtual team if they’re located offshore.

2. Fostering a Motivating Atmosphere

A working relationship built on trust does wonders for your team’s performance. Most companies report that trust results in a motivating atmosphere that improves productivity and quality of work. In addition, you can extend your motivating atmosphere to the actual workplace. Working with an outsourcing provider that has a fun, startup culture is also a good move. Outsourcing companies in the Philippines, for example, go through lengths in making their workplace fun and comfortable. Make sure to find an outsourcing vendor that shares the value of a motivating atmosphere.

3. Encouraging Potential Leaders to Step Up

Trusting your team motivates them to do a better job and encourages them to improve themselves. According to a Forbes article, “32% of a worker’s loyalty is the result of feeling trust towards their boss.” Entrusting them with important tasks and complicated projects instills a sense of responsibility and ownership in them. This could spark the call to leadership among your trusted team members. Your trust becomes a motivation for them to grow in your company. A good employee would do everything to strengthen that trust if they want to create a solid career path.

4. Improving Employee Retention

Trusting your team members makes them feel significant and valued. The latter contributes to job satisfaction thus leading to a higher retention rate. A company with high attrition spends more on its recruitment fees and wastes valuable time re-training new staff. Finding ways to retain your best talent saves your time and costs. It’s an effort worth investing in.

Trust is earned. It’s also mutual. To successfully grow as a company and make the most out of your outsourcing engagement, it’s important to work with a reputable outsourcing provider. After all, trust is built on relationships. Find a partner that can build that relationship with you.

For more information about outsourcing benefits, outsourcing pros and cons, and outsourcing strategies, visit Twitter, Facebook, and LinkedIn.