Are Ghost kitchens a game changer?

Never waste a crisis, they say. Covid-19 has forced people to stay indoors and forgo things like restaurants and theatres. Sitting at home and armed with social media like Instagram and Facebook people look for ways to entertain self and order for home delivery. The Restaurant Business has taken a huge hit due to the pandemic and people are now looking for fresh ideas and new business models that are cost-effective, simple in managing and technology-friendly. Ghost kitchen is one such model which has a lot to offer. As everyone has taken indoors, the delivery business is here to stay and this is what ghost kitchens are cashing on!

As the name suggests Ghost kitchens also referred to as cloud kitchens are kitchens that focus on delivery only model and a very few allow takeaway as well. Usually, Ghost kitchens deliver within a radius of 4 to 5 km. They work on a model wherein they have a small kitchen setup where the food is prepared and then there's the delivery partner who makes sure that the food is delivered to houses with all food safety measures in place and on time to the customers. Usually, these Ghost kitchens have a website or app of their own from where the customer can order and they also partner with other food delivery platforms.

However, it may also prove to be a changing point for the food industry. People become lazy when things are going fine and when a crisis hits we become agile and are up running to save the most that we can.

Here is our take on why ghost kitchens can be a game-changer:

  1. Low cost, easy setup- They are simple to set up. That being said, all you need to set up a ghost kitchen is a small place to cook, utensils and equipment for cooking. With a limited amount of staff, you are ready to go and provide safe home delivery. As ghost kitchens do not support in house dining which makes it cost-friendly and easy to manage.

  2. High on cleanliness - As Ghost kitchens have only cooking in their kitchens and no in-house dining which implies that they have an upper-hand in regards to cleanliness which is important in these Covid times for safe home delivery. Ghost kitchens are low on staff this in-turn leads to them being budget-friendly for the end-users.

  3. One location with Multiple brands

  4. As the tagline suggests, ghost kitchen can be a hub for multiple brands which will in-turn help the business in multiple ways:

  5. It is cost-effective

  6. Multiple brands or cuisine styles can be cooked from the same kitchen. This in turn helps the investor to understand what is working for them. This is by far the most reliable, quick and easy way for the investor to study the market, about what the end-users like and how one should conduct the cloud-kitchen.

  7. Hygiene a priority- Ghost kitchens focus on food that is simple, healthy and now in Covid times hygienically prepared which is what people are most concerned about. In these evolving times when people are working and are preoccupied at home, which leaves them no time to cook. It so happens that people would look forward to ordering food that's healthy and follows food safety measures and of course, is budget-friendly which is the USP of a ghost-kitchen.

  8. Expansion is easy- Ghost kitchens allow for owners to understand the kind of food liked by the audiences. As a lot of cuisines are present under one roof, one kitchen can provide a variety to the consumers allowing the owners to understand what works and what does not. Which in turn, will lead to wise and facts led decision making in the process of expansion, which would have a higher probability to be successful.

Ghost kitchens seem like a viable solution for both the restaurant owners and the end-users. The cost of setting up is less, which would allow for some wiggle room and lower prices for the food delivered by the ghost kitchens.