Introduction to Ghost Kitchens

There have always been plenty of avenues for expanding or starting a food franchise, whether it’s opening up a drive-thru, traditional brick-and-mortar, or even a food truck. And now, there’s ghost kitchens - the newest culinary concept that helps restaurant owners quickly expand and scale their food business via delivery. These commercial kitchens provide your restaurant with the tools you need to successfully expand your brand in a way that’s low risk and low capital.

There’s no need for opening a new brick-and-mortar location, instead, you can open within a ghost kitchen in as little as one month and at a fraction of the cost.

Let’s see how ghost kitchens can help you and your business. 

Lower Costs

The start-up capital involved with a ghost kitchen is far less than opening a new brick-and-mortar. If you’re planning to open a new restaurant, you could open in a ghost kitchen with about $30K in upfront investment versus $200-500K with a brick-and-mortar location¹. The risk is much lower with a ghost kitchen, given your upfront investment is minimal, and your speed to open is significantly faster.

The operational costs are much lower, too. With a ghost kitchen, you only need a few back-of-house staff members, since there’s no dine-in element (much lower labor costs). Plus, you’ll be reeling back on costs like rent and wasted food, so your kitchen is running at maximum efficiency. 

Turnkey Expansion

You’ll not only be cutting costs, but also minimizing time spent on opening a new location. Ghost kitchens serve as your main vehicle to expand in new markets, where you’re up and running in as little as one month. 

Instead of long ramp-up periods and wait times around construction for a new brick-and-mortar location, ghost kitchens provide you with the perfect turnkey solution. 

You’ll also see an ROI in less time. With a minimal upfront investment and lower overhead costs, you’re able to save while growing your restaurant business. You can break even on your investment in as little as 6 months, whereas if you were to open a new brick-and-mortar location it could be five years before you make your money back, assuming it’s a success. 

Reach More Customers Online

With a ghost kitchen, you’ll be able to reach more customers than ever before, from one single kitchen. With the wide selection of food options online, customers are ordering food directly from their phones at a rapid rate. And with the convenience of ordering delivery from practically anywhere? There’s a reason online delivery is booming. 

You’ll be located within a delivery hotspot, so you can reach a higher volume of customers at a fraction of the cost. This means you can expand your reach without ever having to open another brick-and-mortar location.

Expand Quickly with Multiple Brands From a Single Location

There’s no need to build a separate brick-and-mortar for each location, you can just open up a shop with a delivery-only kitchen, and let the orders roll in. 

Plus, you’ll also be reaching more customers through multiple digital storefronts at no additional cost. Instead of a physical storefront for each location, you’ll have multiple online storefronts within each delivery app.