How Ghost Kitchens Can Be More Profitable and Sustainable

Posted on November 13, 2020 by Ash Bennett

Ghost kitchens don’t have a physical dining space which is why they have lower operating costs. As a result, these “cloud kitchens” and delivery-only restaurants can be more profitable and sustainable than the conventional restaurants with huge dining spaces.

How ghost kitchens can be more profitable and sustainable

It’s especially the case now where takeaway and delivery food services are on the rise because of the pandemic and that dining experiences are being a bit discouraged. There’s also that looming threat about a second wave and there’s nothing certain yet about vaccine development and full deployment. Customers would then prefer to have their meals and snacks delivered instead of going into a conventional restaurant where there’s a risk of infection.

Ghost kitchens actually present a win-win solution for both the customers and business owners. Customers always want convenience and variety when it comes to food. On the other hand, business owners still want to earn some profit and deliver value through food. Even during these uncertain times they can still do that through cloud kitchens. What’s surprising is that this can be more profitable and sustainable because of the lower operating costs. In addition, they can take advantage of the existing and shared equipment and infrastructure. Also, instead of buying plates and utensils they can just invest more on environment-friendly packaging for deliveries and takeaways.

The concept about ghost kitchens and off-premise dining has been here for several years already. The coronavirus has accelerated the shift and made business owners rethink and reinvent their operations and business model. Also, this has actually encouraged more people to start their own businesses because of the lower upfront costs and operating expenses.

Because of the lower start-up and operating costs, business owners and managers will have more financial resources to improve their processes and perhaps even expand their service area and footprint. This can also help them better focus on preparing delicious meals instead of constantly thinking about the dining space and the customers’ dining experience. This is indeed a win-win scenario for both the customers and business owners, which is especially important in these uncertain and rapidly changing times.

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