Ghost Kitchen: COVID-19 Driving Innovation Forward
a detailed 2020 analysis of ghost kitchens by Thomas Primus
Ghost Kitchens are rising, offering an innovative solution to the restaurant industry’s COVID-19 crisis.
Virtual restaurants, also known as ghost kitchens, can be a valuable strategy for existing restaurants to increase sales and reach new customers. By offering new or complementary concepts under different branding, restaurants can expand their menu offerings without incurring additional costs for new physical space or equipment. Operating sites can also be used as ghost kitchens during opening hours, allowing restaurants to use their existing kitchen staff and supply chain. This can be particularly beneficial for restaurants impacted by the COVID-19 pandemic and related restrictions on capacity and operations. Ghost kitchens can also allow restaurants to rehire unemployed staff and diversify their customer base. However, it is essential for restaurants to carefully consider the costs and benefits of launching a virtual brand and to ensure that they have the resources and expertise to manage and market the new concept effectively.
Using ghost kitchens can be an effective way for restaurants to reduce costs and increase efficiency. By sharing space and locations with other businesses, restaurants can use economies of scale and lower overhead expenses. For example, suppose a restaurant is only busy during certain hours of the day. In that case, it can sublet its kitchen space to other businesses during the off-peak hours to generate additional revenue and offset the cost of maintaining the area. Ghost kitchens can also allow restaurants to optimize their use of kitchen staff and equipment, potentially reducing labor and operational costs. However, it is essential for restaurants to carefully evaluate the costs and benefits of using ghost kitchens and to ensure that they have the necessary resources and expertise to manage and market their virtual brands effectively.
The original article is “Ghost Kitchen: COVID-19 Driving Innovation Forward“