Why “Ghost Kitchens” Can Be a Good Addition to Expansion Plans for Restaurants

Opening a new restaurant can be a daunting task. Not only do you have to worry about designing a menu that will please customers, but you also have to think about things like décor, staffing, and marketing. When you approach the restaurant business the traditional way, you probably won’t even consider expansion until much later. That’s why restaurant owners have had to think out-of-the-box when it comes to devising an expansion plan for their business. And one concept that is worth considering is the “ghost kitchen.”

What is a ghost kitchen?

Ghost kitchens are also often referred to as shadow kitchens or virtual kitchens. They are essentially facilities that are used only for food preparation and cooking. It’s not clear when ghost kitchens began to exist, but it’s certain that the ongoing pandemic resulted in its surge.

COVID-19 forced the closure of all establishments where people would gather in groups. One of the hardest-hit industries was the restaurant sector. Without knowing how long before in-house dining would be allowed again, business owners decided to cut their losses and close their restaurants indefinitely. However, they did not abandon their food service business entirely. Instead, they rented facilities that would only be used for food preparation and cooking, thus, allowing them to offer their menus through a delivery service.

The Benefits of Using a Ghost Kitchen

When building a multi-faceted brand, restaurateurs know the importance of providing customers with a memorable experience. And now that the world is reopening, restaurants that had once closed are now considering opening their doors again.

Unfortunately, ghost kitchens do not provide a holistic dining experience. Because the facility exists entirely for food prep, there are no tables, chairs, servers, and everything else you would find in a dine-in restaurant. However, ghost kitchens offer other benefits, starting with the opportunity to expand the restaurant’s operations, menu, and delivery range.

With a ghost kitchen, restaurants can grow their business without having to open another location. Without a separate kitchen facility, in-house orders and orders for pick-up or delivery would all have to be prepared and cooked in one kitchen. The limitations in space and staffing can lead to missed opportunities as business owners may need to prioritize dine-in guests over delivery orders or the other way around. Essentially, the in-house kitchen should cater to the dine-in guests while a ghost kitchen would serve only delivery customers.

Ghost kitchens also allow the restaurant owner to test their new menus before investing in either a full restaurant space or offering it on the dine-in menu. Many restaurants are already doing this, explaining why some dishes are only available for dine-in, or some are only available for delivery.

If you are currently selling food from your home kitchen, a food stall, or a food truck, investing in a restaurant space may seem risky right now. Renting a space as a ghost kitchen is an option that will help you minimize overhead costs and maximize profits. The ghost kitchen would serve as a dedicated facility where you can expand your offerings and gauge the public’s interest in a dine-in experience.

For more information about Ghost Kitchens, or any type of commercial real estate, please feel free to reach out to: joe@joekillinger.co