In the article on the interesting trend of celebrities starting burger brands, I mentioned the phrase ghost kitchen business model. A recap of what we discussed: “The virtual nature of MrBeast Burger is in that the brand is delivery only. In other words, it uses a ghost kitchen model. In case you are wondering how it all works: MrBeast Burger identifies already-established restaurants to partner with. The burgers are then prepared in those partner restaurants. Those restaurants sell burgers, especially via mobile delivery apps. An interesting business model if you ask me. (This is something that entrepreneurs should seriously consider in Zimbabwe)”. We discuss that more today.
What Is A Ghost Kitchen?
In short, it is a delivery-optimized kitchen. This means it exists for the preparation of food meant to fulfil orders made online. Thus it is a kitchen that does not have a storefront per se. We could say it does not have real estate for sit-ins or for customers to come in-store. (There can be variations though but the virtual aspect is dominant). That is why a ghost kitchen can also be referred to as a virtual restaurant.
The food orders are received and then delivered using third parties or they can be done in-house. What this means is a ghost kitchen startup can build the mechanisms to receive orders e.g. a mobile app or web app. Then it can have its own delivery infrastructure to deliver the orders. Alternatively, a ghost kitchen can partner with a third party e.g. some other food ordering and delivery startup.
Approaches To Ghost Kitchens
Obviously one can start from scratch by offering food choices of their own making. How they roll out everything will depend on how they choose. They can rent, share, or set up their own ghost kitchen. (The sharing approach is interesting because it entails another business idea. One can build an industrial kitchen that can be shared by several ghost kitchen operators). Then there is another approach where an already functional restaurant can set up a ghost kitchen.
The thrust will be to take away the pressure of online orders from the normal brick-and-mortar restaurant. They can set it up onsite or elsewhere. Another approach is franchising which means you will be working with an already-established brand. The only difference is that you will be a ghost kitchen. You can even use an already functional restaurant belonging to that brand. Alternatively, you can just operate from a location not belonging to or run by the brand in question.
Ghost Kitchens Are The Future
Lower Costs To Start And Operate
The most obvious advantage of ghost kitchens is cost-cutting. By adopting the ghost kitchen model so many costs are eliminated. For instance, the brick-and-mortar needed is fairly smaller. It is even possible for one to run a ghost kitchen from home. You may also just rent a kitchen (or even share one). A ghost kitchen requires much less staff. Rentals, if applicable, are much less. There are other costs like setting up and maintaining dining space that is eliminated. The cost of things like electricity and water is drastically reduced. All in all, it is much cheaper to start and run a ghost kitchen.
Sustainability Focus
The other reason why ghost kitchens are the future is their sustainability focus. This literally happens by default. Ghost kitchens use less power and less water. No customers have to be driven and drive to the location. This in a way reduces greenhouse gas emissions. There is also less waste disposed of due to fewer people involved. This can be human or food waste. These are some of the examples that demonstrate how ghost kitchens contribute towards sustainable living. This has several environmental and human health benefits. This also increases the chances of accessing funding due to the rising interest of investors in sustainable ventures.
The Indispensable Place Of Digital Marketing For Ghost Kitchen
The ghost kitchen eliminates the interaction with consumers physically. This means you will not have the chance to use physical marketing items e.g. your storefront. A physical location typically plays a huge role in marketing a business. Yet for ghost kitchens that will be out of the equation. This implies you will have to do your marketing online. Digital marketing will be your go-to if you are to build brand awareness. This is particularly so if you are doing everything in-house i.e. accepting orders and making deliveries. It can be somewhat easier for someone working with third parties. Regardless, the place of digital marketing will be important. You will have to be abreast with how to roll out digital marketing campaigns.
I see vast room for the setting up of ghost kitchens. Interestingly there are many Zimbabweans operating ghost kitchens without even realizing it. For instance, someone advertises their food platters online. They get orders and they prepare the orders at their home or some location. Then they deliver the orders to their clients. You probably know a number of Zimbabweans doing this. That is the ghost kitchen model. This shows that there is a lot of potential for the ghost kitchen business model to thrive in Zimbabwe. I also want you to think outside the box. Yes, the ghost kitchen model is primarily for the food industry – restaurants in particular. However, the model itself can be tweaked and applied to other businesses. Think along those lines and you may discover some remarkable business ideas.
