So, what are ghost kitchens?
Ghost kitchens are essentially restaurants without dining spaces. Their focus is to sell and fulfill online food orders and to utilize third-party delivery apps, such as Grubhub, UberEats, and DoorDash. A ghost kitchen also allows for restaurants with dining-in services to expand their delivery operations without the added stress to an already existing kitchen.
How do they work?
With a ghost kitchen, you are able to rent a space for a specific amount of time to fulfill orders for customers. These kitchens are usually located in densely populated areas. The specific idea is that these spaces are more affordable than building new restaurants in these locations.
Are ghost kitchens profitable?
Ghost restaurants are capitalizing on online ordering and delivery service models while reducing the typical brick and mortar costs. The most profitable ghost kitchens are in high rent neighborhoods. This is because the need for expensive restaurants spaces is minimized while addressing the demand for a specific dish in the area. Ghost restaurants also save money because they do not have to hire an entire staff as a restaurant would need.
What are the different types of ghost restaurants?
Some restaurants are using extra space in their current establishments to create ghost restaurants alongside their traditional restaurants. Another option is to rent out a kitchen space separate from a traditional space. Lastly, entrepreneur ghost restaurants are trending. Entrepreneur ghost restaurants rent and operate locations dedicated to virtual kitchens. This means they’re not operating a traditional brick and mortar to house their ghost concept. For example, the Green Summit Group in New York City operates nine different restaurants out of two kitchens.