Ghost Kitchens

Ghost kitchens are restaurants that exist only as an online order and delivery service. They have no physical location, and the food is prepared in a central kitchen. Several reasons are behind the growing popularity of ghost kitchens over the past few years. Here’s what you need to know about the advantages of running a ghost kitchen, how to start one, and what the future of this industry looks like.

Types of Operating Models

Ghost kitchens consist of a kitchen, some orders for tables, and a pick-up window for delivery persons. These kitchens are built only for delivery and without any public presence. However, you will find them on food delivery apps, and their listings look the same as any brick-and-mortar venture.

Different operating models:

  • Operates out of an existing restaurant’s kitchen
  • Sometimes, they could be running out of shipping containers or trailers
  • There could be several kitchen units housed in one industrial building or warehouse.

(Watson, 2021)

Pandemic Affects on the Restuarant Industry

The Covid-19 pandemic wreaked havoc on the restaurant industry, leading to a massive demand for food deliveries. By March 2020, several U.S. jurisdictions asked restaurants to close their dining rooms to prevent the spread of coronavirus. Some restaurants never reopened, while others looked at opting for a carry-out or delivery model.

During this time, some small restaurants used ghost kitchens as an opportunity to get a foothold in the market. Previously, opening a traditional restaurant with a dining room would be an impossible task. These restaurant operators realized they could survive if they could mitigate the high delivery charges of food delivery apps or build them into the price. 

Whether it’s traditional quick-serve restaurants or fine dining restaurants, they’re all keeping an eye on the possibility of virtual locations for their brands. (Miller, 2022)

Advantages of This Model

One of the main advantages of ghost kitchens is that they can be located in areas with lower rents. Because there is no need for a dining room or other public space, ghost kitchens can be found in industrial warehouses or even residential apartments. This gives them a significant advantage when it comes to overhead costs. The low overhead costs can be passed on to customers in the form of lower prices.

Ghost kitchens can operate with a very lean staff. There is no need for servers or bartenders, and a small team of cooks can run the kitchen. This makes them much less expensive to operate than traditional restaurants.

Ghost kitchens are very convenient for customers. They can order their food online or through a mobile app, delivered right to their doorsteps. This convenience is one of the main reasons this type of business has grown in popularity.

Another advantage of ghost kitchens is that they offer more flexibility than traditional restaurants. For example, ghost kitchens can change their menus more frequently and experiment with new dishes without worrying about the cost of inventory or wasted food. Additionally, ghost kitchens can operate in multiple locations, which gives them a significant delivery radius and potential customer base.

How to Open a Ghost Kitchen

If you’re thinking about starting a ghost kitchen, there are a few things you need to keep in mind.

You’ll need to find a central kitchen location where you can prepare all of your food. This kitchen should be large enough to accommodate all your equipment and staff and located in an area with good transportation access.

Ensure your menu is concise and focused on a few essential items. This will help you keep your costs down and ensure that your food is high quality.

Choose a delivery service that is popular in your area. This will ensure that you have a steady stream of orders coming in.

Next, you’ll need to create a solid online presence for your business. This means having a website and social media accounts that customers can use to learn about your ghost kitchen and place orders.

Finally, you’ll need to promote your business so that people know about it and can find it when looking for delivery options. You can do this by offering discounts or promotions, partnering with delivery services, and advertising online.

The Future of Ghost Kitchens

Ghost kitchens are becoming an increasingly popular option for those in the restaurant industry. This industry is expected to grow in popularity, especially in urban areas. This growth will be driven by the increasing demand for convenient food delivery options and the rising costs of traditional restaurants. 

We can expect to see more businesses popping up and delivery services partnering with ghost kitchens to offer their customers a more comprehensive range of options.

Starting this type of facility can be a great way to enter the food industry with low overhead costs and high growth potential. Your ghost kitchen can be a successful and profitable venture with proper planning and execution. Keep these tips in mind if you’re considering starting a ghost kitchen.

About Business Sound and Communications

As technology improves, restaurants without dining rooms will become even more efficient and profitable. When it comes to technology, Business Sound and Communications is your technology resource for a heightened customer experience providing personalization and convenience. We are family owned and operated and have served Houston and surrounding areas for over 25 years. This gives us a competitive edge in sales and service of drive-thru communications, digital menu boards, POS systems, timers, scent marketing, surveillance equipment, and more. 

We are a long-term solution for drive-thru operations, quick-serve restaurants, fine dining, and hospitality industry businesses. We are here to help your operations run efficiently, accurately, and timely, resulting in delighted customers. Brands we represent are Panasonic, HME, PAR, MoodMedia, and ICRealtime. You can find us at www.bsctx.com or call us at (281) 590-3400. 

Works Cited

Watson, Corinne. “Ghost Kitchens Explained + Examples (2022).” Lunchbox, Lunchbox Technologies, 24 Sept. 2021, 

lunchbox.io/learn/ghost-kitchens/ghost-kitchens. 

Miller, Jeffrey. “What’s a Ghost Kitchen? A Food Industry Expert Explains.” The Conversation, 13 Sept. 2022, 

theconversation.com/whats-a-ghost-kitchen-a-food-industry-expert-explains-163151.