Ghost Kitchens: The New Normal

Ishaan Pandey | July 9, 2020

Over the past few years, online food delivery was anyway on an upswing. But, this global pandemic, COVID-19 has turned out to be a trend setter for Ghost Kitchens.

Ghost Kitchen has caused a drift in the food industry, as the dine-in option now takes a backseat, the fundamental role of Ghost kitchens aka “Dark kitchens” is preparing and providing a ‘delivery only service’
to the customers.

A Multifarious Phenomenon

› Ghost kitchens are not restricted to a specific business model, they can have many forms such as an outsourced kitchen to even as simple as a takeaway service.

› Ghost kitchens also are very flexible in adapting according to the volatility of the market and the nature of consumer demands.

New direction to the market

The pandemic is responsible for setting back the food industry by 75-90% worldwide.

Given the number of restaurants that have to shut the ‘dine-in’ option down, the survival kit is takeout and delivery.

Though a relatively new model, it has not stopped Ghost kitchens in becoming a trend and creating a prominent presence
in the current F&B retail market environment.

No ‘Dine–in’ challenge for restaurants

People are avoiding dine-in, and it has caused:

› Heavy drop in footfall
› Sustainability issues
› Low inflows

Advantages of going Ghost

› Lower costs: The framework expedites process and removes dine-in expenses such as rent, salaries, extra raw material.

› Reduces wastage: Maximum raw materials in any restaurant are perishable.

› Creates a “Host Kitchen” environment: Existing restaurants can rent out kitchen space and even labor to third-party brands for delivery, making optimal use of their restaurant space.

Things to keep in mind

› Ensuring packaging consistency and quality
› Deciding authority and answerability
› Ensuring delivery executive’s service standards

Apps to the Rescue

With online ordering apps it is even simpler to execute the process of getting food from the kitchen to the customer.

Just, Add to cart → Make the payment

Also, customers get a wider variety on one platform and your business expands its delivery footprint.

Ghost is the Future

From being deemed as a threat to restaurant industries to being the next trend, ghost kitchens have gained a lot of traction. USA alone is expected to see a 25% rise in sales each year for the next 5 years via 300 facilities amounting to $300 million in  yearly sales.

The customers are shifting towards higher accessibility complemented with maximum ease and that is the sector Ghost kitchens are sculpted to cater.