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by Galbani®

Thin Sliced Fresh Mozzarella

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However, along with their many benefits, ghost kitchens also create unique challenges. How do you get the word out and win over customers without a physical location and the warmth of in-house hospitality? How do you stand out from the growing number of online competitors? How do you launch your brand if you’re working with a shoestring budget? Here, experts share their best advice on the potential and the pitfalls that surround ghost kitchens.

COST-BENEFIT ANALYSIS

Megan Wintersteen, VP of marketing at Zenreach in San Francisco, notes that while ghost kitchens have been around for a number of years, their popularity skyrocketed during the pandemic, and those aftershocks will likely be felt for years. “We saw significant increases in delivery and takeout orders across 2020 and into 2021,” Wintersteen says. “Because humans are creatures of habit, we expect that new routines created during the pandemic will likely keep delivery rates higher than prepandemic levels as recovery continues.”

She points out several advantages to the ghost kitchen model: An operator requires less up-front investment in real estate, due to no dine-in, and in tangible items like menu printing, table settings and decor. “Operationally, ghost kitchens often allow food to be prepared more quickly and offer greater menu flexibility,” Wintersteen adds. “From a branding standpoint, ghost kitchens offer the ability to test a concept prior to making the larger investment of a dine-in establishment, and we’ve also seen examples of brands using ghost kitchens to evade poor reputations or reinvent themselves.”

Since modern-day trends can evolve literally by the minute, ghost kitchens mark an important shift in how consumers relate to food and the experience of eating, according to Miriam Aniel, head of content and research at Tastewise in Richmond, Virginia. “Through lower overhead costs and a delivery-only model, virtual restaurants are able to pivot quickly to address changing consumer tastes,” Aniel notes. “Is there a new dessert that customers are rumored to love? Add a creative version of it to the menu. Did that pizza topping fall flat? Take it off. Chefs in ghost kitchens are able to experiment with new ingredients and dishes with less risk of fallout than in traditional restaurants.”

Ghost kitchens can also cater to customers in thriving neighborhoods—without operators paying the high rents to score space there. “Virtual restaurants with expansive delivery options allow brands to rent kitchen space, often shared, in low-cost areas, slashing the costs of both the location and the support staff,” Aniel explains. “No customers dining in means no waiters, management, bussers, etc.”

Similarly, Bryan Cromwell, COO of Veneto Hospitality in Austin, Texas, which owns the ghost kitchen Benvolio’s, appreciates the ability to expand the reach of his business with delivery to new areas where people may know the brand but are reluctant to travel a long distance for it. Setting up a ghost kitchen allows him to test a new geographical market before launching a brick-and-mortar there.

Small Bites

Experts share quick tips for successful ghost kitchens.

“Bring the same customer attention to the online space that you would bring every day to a brick-and-mortar space. Engage with local events, partner with local online influencers, run Instagram contests—and really emphasize all of that in your online presence. Virtual restaurant owners who view their work not as transactional, but as relationship building, will have both loyal customers and a competitive edge.”

Miriam Aniel, head of content and research, Tastewise, Richmond, VA

“Engage influencers and have lots of content to share. As you build, ask guests to leave good reviews, and answer any bad ones quickly. Working with third-party delivery, know the reputation of the companies you choose and how their drivers treat your products. Put in place measures such as safety seals, and be sure to use good takeout packaging that will hold up to transportation, hold in heat and make a good impression on the receiver. Treat all of the drivers you encounter with respect so they, in turn, will respect you and the product you serve.”

Bryan Cromwell, COO, Veneto Hospitality, Austin, TX

“Invest in some merch so people can see your brand wherever they look. Start personally engaging with your audience: Use polls to let your following decide your newest specials or flavors. Ask for feedback, run ‘Ask Me Anything’ sessions, and DM your best customers and begin to build relationships with them. I even self-deliver on a designated day or set up pickup dates, because face time with your customers is clutch. You’re already a faceless entity, being cloud-based, so you need every opportunity you can get to personally connect with your customer and say, ‘Thank you for your support.’ Human connection goes a long way in this day and age.”

Ashley Burk, Steady Hand Cafe & Collective, Spring Lake, NJ

Shared Spaces

Though ghost kitchens offer myriad benefits, they still require basics associated with traditional restaurants. For example, Cromwell emphasizes that these kitchens, while less expensive, still have significant costs, including rent, advertising, and product and equipment purchases. What if you’re a newcomer starting on a shoestring budget? “You could identify someone currently in a kitchen but underutilizing it, and partner with them to launch,” Cromwell recommends. “Many ghost kitchens can support multiple concepts in a single kitchen, if the equipment and storage are compatible with your pizza concept.” For example, maybe someone in the area runs a breakfast operation that closes by afternoon, so you can run a pizza concept in the same space in evenings. “You would be able to cross-utilize cooler and counter space and perhaps only have to buy a pizza oven, reducing your cost and barrier to entry,” Cromwell says. “Then you split rent and fixed overhead costs, making it better for both parties.”

Indeed, Joey Simon, Senior Vice President of Operations of Miamibased Creating Culinary Communities (C3), notes that the pandemic exposed how grossly underutilized kitchen spaces are, especially in hotels and select-service restaurants. “Pre-pandemic, C3 observed most hotel kitchens were operating at just 15% to 20% efficiency—and these are kitchens in prime locations,” Simon says. “One idea is to