Are Ghost Kitchens Cannibalizing Eateries?

February 8, 2020

Are Ghost Kitchens Cannibalizing Eateries?

Did you know that by 2030 the online food ordering industry is expected to hit the $365 billion mark globally? The biggest names in the food delivery industry are Grubhub, DoorDash, and Uber Eats, but these delivery services are just part of the story when it comes to the revolution in meal preparation and online ordering.

Virtual restaurants and ghost kitchens are sprouting up to make the most of the dynamic changes happening in the food scene. Like many restaurants, particularly chain eateries, they're relying on new food delivery services to grow their business; and it's working. What is clear is that traditional restaurants who have not yet signed on with delivery services to promote their food menu online are failing to take a bite out of a lucrative turn of events; and the result is that virtual kitchens and restaurants with online delivery are eating up the profits of those non-participating restaurants.

What Are Virtual Restaurants?

A virtual restaurant is, effectively, a restaurant kitchen that doesn't offer dine-in service. Also called ghost kitchens, dark kitchens or cloud restaurants, these venues simply offer take-away food that they promote with their online storefront and menu. As increasing numbers of consumers get used to the online delivery trend -and love it- entrepreneurs are capitalizing on this dine-at-home trend and creating virtual restaurants without the overhead costs and staffing resources that traditional restaurants must contend with.

There are lots of advantages to ghost kitchens. They can make the most of a smaller space because they don't need room for dining. That means they have less investment to make. Of course, these restaurants are still beholden to the same food-preparation standards and regulations, but they only have to focus on food. Then, like any other restaurant, they can partner with DoorDash and Uber Eats to provide delivery service for them.

So Much More than Pizza

Consumers, especially those in larger towns and big cities, now have access to a wealth of food establishments. Grubhub will deliver McDonald's to their door, but they'll also deliver Chinese, steakhouse chops, Jamaican, or any other type of cuisine from participating members. Whether you operate a brick-and-mortar pasta shop or a virtual restaurant that specializes in Moroccan Tandoori dishes, you can sign on with a platform like DoorDash.

A Major Trend

As many people know, it's not just restaurants and ghost kitchens getting in on the food delivery craze. People are ordering groceries and alcohol to be delivered to their doors. Some companies deliver meal ingredients that arrive uncooked; people simply order these dinner ingredients and prepare them when they arrive. According to some statistics, the average person has apps for two food delivery services that they use three times per month. In another report, 60% of U.S. consumers said they order at least once per week. In addition, this same report stated that 60% of restaurants say they owe a rise in incremental sales to delivery service.

If your restaurant isn't associated with one of these popular delivery apps, you're not on the menu; you're not getting the increased exposure, and you're not building on your customer base. Keep this statistic in mind: "87% of Americans who use third-party food delivery services agree that it makes their lives easier." Therefore providing this convenience to customers can lead to a tangible increase in profits. After all, "Online ordering and delivery have grown 300% faster than dine-in traffic since 2014," so if you want to increase your profit margin, online ordering promises the best return on your investment.

A tablet displaying the Cuboh App

One Tablet to Rule Them All

When you contact with a delivery service like Grubhub, you get a tablet. Want to contract with Uber Eats? You need another tablet. Multiple tablets, chargers, busy Friday night, and lots of orders translate into a recipe for confusion. Cuboh is a convenient service that allows you to manage all your food delivery orders from one tablet. Contract with multiple food delivery providers, manage your menu and all your orders via one easy-to-use platform.

And guess what? Cuboh can send all food orders to your POS too, in real-time. This streamlined system lets you keep track of orders easily, avoiding human mistakes and improving overall efficiency.

So, if you are a traditional restaurant that's been holding out, get to know what Cuboh offers. It's simple, affordable, and designed to support your online orders. Whether you're a ghost kitchen chef or a veteran brick-and-mortar restaurant, you can increase your sales by using Cuboh to manage online orders and deliveries. Click here to visit the site.

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