What Are the Business Models of Ghost Kitchens?

What Are the Business Models of Ghost Kitchens?

You may have seen or heard of restaurants that are apparently closed for dining but are still operating and sending deliveries. That is exactly what is a ghost kitchen or a cloud kitchen. You may have ordered a meal from a ghost kitchen without even knowing. So, here’s everything you need to know about what a ghost kitchen is, how it started, and it’s future in the hospitality industry.

There are mainly three different approaches to running a ghost kitchen which may range from adding a delivery-only brand to a brick and mortar restaurant to running a ghost kitchen housing multiple brands. Take a closer look at the three different types of ghost kitchen business models:

Running a ghost restaurant

One of the business models of a ghost restaurant includes running the restaurant exclusively in the cloud without having a physical storefront. Essentially, it is a delivery-only kitchen where consumers cannot dine-in.

Running a shared ghost kitchen

Another model that a business can operate is a complete ghost kitchen business by renting out kitchen spaces to multiple restaurant brands. The shared ghost kitchen business acts like a coworking space or an incubator for restaurants. They have perfect Kitchen fruit wall arts which is attracting restaurants. Therefore, running a shared ghost kitchen business is similar to acting as a landlord rather than running the restaurant business yourself.

Adding a delivery-only brand to an existing restaurant

Existing restaurants are also leveraging the ghost kitchen trend by adding a delivery-only brand to their restaurant. With this business model. Restaurants can also offer take-out from a physical location. Moreover, they have a choice to offer the same items on the existing menu or build a different menu for deliveries.

The future of ghost kitchens

According to Global Magazine, Ghost kitchens face a few challenges such as relying on third-party delivery apps, working with on-demand staff, strong competition in the digital marketplace, local regulations and licenses, etc. However, the future of ghost kitchens seems bright, especially after the COVID-19 time

Restaurant owners don’t have to invest a huge amount to open a restaurant and the risk is reduced with the concept of cloud kitchens.

It is a great business model if you are just starting out as a chef or an entrepreneur, or if you own a small brick and mortar restaurant and want to use it as a virtual kitchen, or for large non-restaurant brands, etc. I hope you like reading this article.

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