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8 Reasons Why Ghost Kitchens are the Future for Restaurants

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Also known as a delivery-only restaurant, cloud kitchen, virtual kitchen, shadow kitchen, or dark kitchen is a small, agile, professional food preparation and cooking model which focuses mainly on selling and delivering food via an app. It doesn’t have a dining space for walk-in customers.
However, there’s a difference between a ghost kitchens and a virtual kitchens. Virtual kitchen brands are a unique aspect of existing restaurants earning revenue through their online delivery, whereas ghost kitchen has several brands sharing space and facilities simultaneously for delivery only.

It’s a relatively new concept and gained popularity during the Covid period when most countries set strict social distance and lockdown restrictions. Restaurateurs had to devise a way to stay afloat.

The customer’s demand for restaurant delivery has also increased, and the lower costs incurred by using shared kitchen facilities have also contributed to its emergence.

This concept is gaining a lot of attention in the industry, and Market research firms predict that the industry will surpass the $1 trillion mark by 2030.

Most people refer to it as the unique innovation of the 21st century that helps expand delivery services at minimal costs.

The following are the reasons why they are called the future for restaurants.

Cost-effective

Opening a restaurant requires lots of money that a new business owner may not have. Delivery-only kitchens help the owners reduce costs on rent and employees’ salaries because they hire lean staff.

Restaurant owners also spend money on mortgages and spend time finding a building to start their businesses which may be expensive. Shadow kitchens don’t have a dining space. They only require small space, and therefore reducing startup costs.

Additional revenue

The hospitality industry was seriously affected and experienced lower volumes during the Covid period. The established restaurants had to devise ways to stay in business. The idea of renting out their space and equipment to third-party brands to add revenue streams for their companies has become popular. Others also ventured delivery only models for their kitchens.

Convenience

Delivery is a luxurious, convenient, and sometimes festive process. A customer makes their order, pays for it at their convenience, then sits and waits for their delivery. How more awesome can it get? You enjoy your favorite food from the restaurant without going there.

The demand for food delivery

It is convenient to order food via the app and have it delivered without stepping out. Young generations especially prefer this option. It would be best to have a well-organized lean staff and the most refined edge tech to run a successful online delivery business.
Burgeoning gig economy

The gig economy, which is trending now with staff’s temporal employment, has seen an increase in delivery drivers; therefore, delivery-only kitchens find it easy to transport their orders. They’re easy to install and don’t require a considerable startup cost.

Kitchen tech

Restaurant technology is advancing, and the industry has had some tech renaissance. Archaic tech has been recreated to modernize operations, and dark kitchens have not been left out of this evolution. I can’t emphasize enough high-tech devices to help restaurant owners stay relevant in the industry and offer outstanding services for customer attraction and retention.

Exorbitant real estate price and prime locations

They are gaining popularity because of the rising costs of real estate. Most restaurant owners have fewer funds to spend on high-end properties in a prime location when starting, so dark kitchens thrive here as they are mainly under the radar and in seclusion. Therefore helps them save money.

The power of Digital Marketing

With most customers spending most of their time online, restaurant owners have taken advantage of this fact. They have shifted their focus to digital marketing since they don’t need to bring consumers to their brick-and-mortar location. Digital marketing is the most crucial factor in a successful delivery-only restaurant.

Final thoughts

The ever-increasing real estate prices and the desire for a restaurant to create additional revenue streams, especially during the Covid season, plus the increase in the digital market, opened ways for new concept restaurants called the dark kitchen. With an estimation of passing the $1 trillion mark by 2030, it’s indeed the future of restaurants. It’s often referred to as the 21st-century innovation of restaurants. Your dream of owning a restaurant is just a few clicks away with Occupyd. Make it a reality to visit the site and choose a kitchen for rent from the varieties available.

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