Ghost Kitchen Concept for Restaurant Franchises, a Trend on the Rise

Ghost kitchens are becoming an increasingly popular way for restaurant chains to control costs and reach a broader market without having to open a full-fledged storefront. They are similar to the business world’s co-working spaces except instead of using shared office space, employees are using shared kitchen space to prepare food for delivery. 

Ghost kitchens often work hand-in-hand with food delivery services, which is a boon for consumers who can then order from several different restaurants and have it all delivered together, but there are plenty of restaurants that have these private “virtual” kitchens that are dedicated solely to their own menu items.

How the Ghost Kitchen Benefits Franchises

Franchise restaurants are taking advantage of ghost kitchens more and more, especially during the coronavirus outbreak. The benefits are undeniable:

·       Reduced Operating Costs.

A ghost kitchen requires fewer staff and takes up fewer square feet than a full-service franchise restaurant.

·       Streamlined Operations.

Delivery-only food service models eliminate the bulk of a restaurant’s operating needs. No dishes to wash or tables to set allows franchisees to focus their attention on food preparation and quality.

·       Test Out New Locations.

A ghost kitchen is the perfect way to test the waters in a new market. The initial investment is far less than the cost of opening a new restaurant. Franchisees can enter the market via a ghost kitchen and then assess whether to continue as a ghost kitchen or open a full-service restaurant.

·       Customers Like Them.

Customers appreciate the ease of access a ghost kitchen provides. Ghost kitchens mean consumers are no longer limited to drive-thru or quick-serve restaurant options. Thanks to cloud-based, mobile ordering apps for restaurants, consumers can order online and have their food delivered where and when they want it.

Accessible technology, the sharing economy, and changing consumer dining patterns all support the continued growth of ghost kitchens. Restaurant chains and franchises should explore their ghost kitchen options to deliver a modern dining experience that reduces costs and expands the brand name.

Leveraging Technology to Manage Restaurant Labor Costs Whitepaper cover image

Leverage Technology to Manage Restaurant Labor Costs

Between increased costs, labor shortages, and socio-economic complexities - staying on top of labor costs is more important than ever for franchise owners.

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