Consider the following scenario: you’re scrolling through a delivery app looking for a new place to eat. And you happen to come across a restaurant you’ve never heard of before, so you decide to learn more about it before making an order.
After learning more about the restaurant, you discovered that it does not allow guests to dine in and instead operates entirely within the constraints of a commercial kitchen. The name of this eatery is “ghost kitchen.”
Nowadays, opening a restaurant is stressful and expensive because it involves a lot of paperwork and the cost is likely to rise faster than intended. This is why a growing number of restaurateurs are turning to ghost kitchens. This is also known as virtual restaurants, and it is more tempting because the prices are low and the setup is uncomplicated. A conventional restaurant is the greatest option for you if you wish to succeed in a face-to-face customer interaction business. The ghost kitchen is a good option if you want to save money on the initial investment.
The demand for ghost kitchens is increasing as the number of delivery applications, small real estate needs, and other factors increase. But do you have any idea what a ghost kitchen is? What procedures are involved in establishing a ghost kitchen? Let’s have a look at what a ghost kitchen is:
A ghost kitchen is a restaurant that only serves food for consumption off-premises. The majority of the ghost kitchens are for delivery and will only accept online orders through first-party and third-party platforms, while some do offer take-out. By the end of 2030, ghost kitchens are predicted to account for up to 50% of the take-out and drive-thru sectors. New restaurateurs might use ghost kitchens as a stand-alone business to test their concepts. This type of kitchen is also known as a “dark,” “cloud,” or “shadow” kitchen.
What is the procedure for opening a ghost restaurant?
The following tips will assist you in starting and running your dream business:
Concept and menu development
Your kitchen should be unique and enticing to diners who eat off-premise. You must first create an idea that is distinct from that of other restaurants. After that, you must choose a menu. Foods that sell well and can be delivered or taken out are prioritized by ghost kitchens. Fried chicken or sandwiches, mac n cheese, sushi, noodles, chips, tacos, and beverages are just a few of the popular menu items. Some diners may object to meals that cannot be taken with them on the go. As a result, the ghost kitchens must produce menu selections that can be consumed up to an hour after being prepared and still taste well.
Business plan and source funding
The following stage is to write a business plan. Every restaurant, whether it is an extension of an existing brand or a new one, needs a business strategy. To succeed in today’s competitive market, you’ll need a solid business plan. The company strategy will include fundraising, financing, and operational suggestions. Start-up costs for a ghost kitchen are low, but equipment, location, licensing, marketing, and other expenses can add up to a lot.
Location
One of the most appealing features of a ghost kitchen is that it can be placed nearly anyplace. You won’t have to pay a lot for the location, and you won’t have to deal with drive-in or walk-in consumers. All you need is a location where you can run your business and increase your delivery area. To focus on an initial consumer base for your delivery, conduct research in locations where your dine-in customers exist. If you intend to choose a site that is not in the same geographic area as your visitors, you must be prepared to create a brand name in that area.
Establish an online presence
The next stage is to establish an online presence among your customers. Visitors will have an easier time locating your kitchen if you establish a digital presence. This is one of the most effective and simplest methods for marketing your kitchen. By advertising your menu together with the details, you can attract more clients. In terms of your social media accounts, it’s critical to post often with interesting information to pique customers’ attention. Always be sure to add your contact information so that customers can quickly reach you.
Decide on the delivery system or a food delivery app
You have the option of creating your own delivery system or partnering with a food delivery service. If you choose an external delivery partner, your chances of falling behind in the business are extremely high. You can use a website delivery system to process more deliveries, or you can use POS software to increase productivity.
Adhere to the health and safety regulations
The health department will inspect your premises before you begin operating your business. They’ll look at your food storage areas, production processes, general flows, and operating procedures, among other things. For your final inspection and license, you’ll need to write these down. Inspectors will also check at your menu and any third-party partners you want to use.
Staffing your dark kitchen
Many restaurants lost personnel as a result of the COVID-19 outbreak, as they felt insecure in their jobs. When it comes to the ghost kitchen, though, only a few people are needed. When it comes to hiring for your kitchen, you should post job vacancies anywhere job seekers are looking. Consider using an application tracking system, which will automatically promote your job advertisements on multiple job sites and social media platforms, allowing you to interact with qualified prospects quickly.
Source suppliers
The owners of the restaurants will already have a list of reliable food suppliers. The ghost kitchen can be approached in the same way. When suppliers give bulk discounts, it’s easier to make more money because reduced food costs mean better menu item margins. Beginners will have a hard time getting discounts, so it’s best to start with a small range of variants. Instead of ordering a lower quantity of several items, you can order a larger quantity of fewer ingredients. This will streamline your kitchen operations, allowing you to take advantage of supplier bulk discounts. You can look for vendors who will provide you discounts and the best quality value, which will help your kitchen get off the ground financially.
Provide excellent packaging
Because virtual kitchens only provide takeout, one of the most crucial elements to consider when running your ghost kitchen is the packaging style. If you don’t pay attention to the packaging aspects, it will have a bad impact on the customers because they are focused on the packaging style. Here are some packing ideas to get you started:
- Use your logo or brand name on your packaging to draw attention from customers.
- When keep prying hands away from customers’ orders by using tamper proof or tamper-evident packaging.
- Pick the right packing materials for the type of food you’re delivering. Foods that are hot and cold should be packed separately. The oily items must be appropriately packed.
- If the consumer will have to go a long distance, make sure the food does not spill. If there is a spill in your packaging, it can give the wrong impression. To avoid sogginess of the food components when travelling, keep the sauces separate from the foods.
Market your channel
You can only stay in the competition if you market yourself. You must devise strategies for promoting your brand to online customers across a range of platforms. Use impressive photographs for your website and Instagram customers to market your brand on social media platforms. You can encourage user-generated content by maintaining a Google My Business profile. It’s a useful form of free advertising. You may also promote your kitchen by using your email database.
If you’re opening a ghost kitchen for your current restaurant, it’ll help you generate additional revenue, expand your delivery locations, and adjust to changing consumer preferences. If you’re thinking about starting your own ghost kitchen, you’ll need to consider a variety of aspects such as location, menu items, staffing, and delivery method, among others. You must have a precise picture of your business in order to be successful in it. In today’s digital age, having reliable data on critical decisions is crucial.
You can use a comprehensive, restaurant-specific ordering and management solution to track data and gain insight into your operations. ELVIS ORDERING SOLUTIONS will aid you in running your business on a daily basis. We’ll give you an all-in-one management system that you can link with your existing restaurant system. Order management, delivery management, customer management, user administration, and other capabilities will be included. You can schedule a free demo or contact our expert team for further information.
