How Ghost Restaurants Are Changing The Restaurant Business Model

Ghost restaurants, also known as delivery-only or virtual eateries, are increasing in number. Although you cannot enter this type of food service establishment and ask to see a menu while a waiter brings you a drink, a ghost restaurant can take your order online and fulfill it by delivering the food to your door.About 26% of independent restaurants fail during their first year, and it is difficult to scale a traditional eatery. The traditional restaurant business model combines high upfront investments, large overhead costs and competition, which makes it hard for businesses to survive or grow.

However, ghost restaurants are easier to scale. They usually do not require high investments or overhead costs, and they are easier to test. There is also another important benefit to opening a ghost restaurant. In new markets where delivery demand multiplies rapidly, current restaurants sometimes cannot grow to meet the demand. Ghost restaurants create new supply locations for the industry.”In high labor cost markets, ghost restaurants can bring down the price of handmade meals, and at the end of the day, convenience will always win. Cooking on a daily basis is a mandatory chore that many people hate. By enhancing the whole value chain of food, we can provide better choices for healthy eating every day. Eventually, ghost restaurants will start to replace home kitchens,” Martti Paatela of Epic Foods, a Nordic food delivery company and ghost restaurant, explained.

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Dishes from Moshimo Japanese restaurant delivery-only kitchen stand in a preparation area at a Deliveroo Editions field kitchen, operated by Roofoods Ltd.

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