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.
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.
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.
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.
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.