Virtual Kitchens
Virtual Kitchens
The online food delivery market is projected to grow from a $35 billion industry to a $365 billion industry by 2030 globally and restaurants’ food delivery sales are growing more than three times the rate of on-premises revenue. Considering the high rentals and the increasingly thinning margins, many restaurant operators are now closing up the storefront altogether and moving towards the more economically profitable, Virtual Kitchen business. This concept has just recently been launched and is taking the restaurant world by storm. Many restaurants simply want to expand their business at a much lower cost.
Also known as: Ghost, Dark, or Cloud kitchens: is a delivery-only restaurant format that offers no dine-in facility. Virtual Kitchens accept orders online or through telephone. They primarily rely on online food aggregators/delivery companies such as Ubereats, Cavier, Doordash, Postmates and/or websites or mobile apps to accept online orders. Dark kitchens are considered as a low investment, low risk, yet high on profit format since the cost of setting up a dark kitchen is significantly less as compared to a traditional dine-in or takeaway restaurant. It takes one-third of the time and resources to open a dark kitchen as compared to a traditional dine-in restaurant since you don’t need a storefront at a prime location and wait staff to serve customers.This business provides restaurateurs the opportunity to experiment with different concepts and formats, which has in turn, given birth to varied food delivery business models. It also allows many aspiring chefs/food entrepreneurs the chance to create their own menu and ‘restaurant’ at a low and affordable cost. It allows them a fast and inexpensive way to test their build their brands and test their concepts.
What's Next for Virtual Kitchens?
Delivery and Virtual kitchens will continue to surge over the next few years. Virtual kitchens are considered a low investment, low risk, yet high on profit format since the cost of setting one up is significantly less than compared to a traditional dine-in or takeaway restaurant. It takes one-third of the time and resources. You don’t need a storefront at a prime location and wait staff to serve customers. This business model provides restaurateurs the opportunity to experiment with different concepts and formats, which has in turn, given birth to varied food delivery business models. It also allows many aspiring chefs/food entrepreneurs the chance to create their own menu and ‘restaurant’ at a low and affordable cost. It allows them a fast and inexpensive way to test their build their brands and test their concepts. In addition, we believe larger brands will invest into their variation of a virtual kitchen, as a way to out-source delivery orders and focus on the dine-in customers.