Ghost Kitchens Raise Industry Spirits

It’s no surprise that pizza delivery grandfathered in the in-person handing over of the delicious pie, but COVID has undoubtedly ramped up the reality of delivery service. And, that’s where ghost kitchens come in. Why have a complete dining experience when delivery is boooooo-ming? For those of you who are thinking about flying in head first with starting a ghost kitchen, you may be in luck. Going to the dark side can be lucrative if you plan ahead — and stock up on LloydPans bakeware or pizza pans. 

If you’re reading this and are still unsure of what exactly a ghost kitchen is, don’t be afraid. They’re basically commercial kitchens that are built specifically for delivery. There’s no sit-down service, just a space to answer the phone or computer; create the culinary masterpiece; box it up; and ship it out the door.

We have the American consumer to thank for the beginning of this trend, because 60% of them are currently ordering delivery or pickup once a week, according to Upserve. The numbers in this space are huge:

• 34% spend at least $50 per order on online food orders
• 20% say they spend more on off-premise orders compared to dining in
• 31% use third-party delivery at least twice a week
• Digital ordering and delivery have grown a whopping 300% faster than dine-in since 2014
• 33% say they would pay a higher fee for faster delivery
• 63% love the convenience of delivery, agreeing it’s easier than dining in
• Delivery sales are predicted by Upserve to rise an annual average of more than 20% to $365 billion worldwide by 2030. CloudKitchens has this number at $490 billion by 2025.
• Customers who place an online order with a restaurant will visit that restaurant 67% more frequently than those who don’t. 

Reasons to have a ghost kitchen vary, from the overhead of having a brick-and-mortar restaurant to layouts just not being ideal for the rising demand of delivery. Managing multiple restaurant partnerships is also tempting, as one kitchen can truly be a one-size fits all house for anything from pizza to Mexican to Chinese. And, at restaurants where parking can be an issue, delivery drivers find more ease in front-door VIP spaces that aren’t competing with customers.

Sharing can also be a definite bonus to having a ghost kitchen, as shared spaces with other ghosters can save rental space costs. Renting the space with a culinary friend can release the pressure of owning a brick-and mortar restaurant, and cooking can be more fun with a friend!

Are you thinking of starting a ghost kitchen, or do you already have a bootiful setup? Don’t ghost us! Send us your pics and innovative ideas!