The Rise of Ghost Restaurants

Not familiar with the concept of a ghost restaurant? This concept is changing the landscape of the food industry. Ghost restaurants are delivery-only eateries. There are no seats, no servers and no storefronts… this trend is ready to take the food industry by storm. With the rise in third party food delivery, this concept is really not that surprising.

Customers, especially Millennials, enjoy eating their favorite restaurant food from the comfort of their sofas. Why stop your Netflix marathon midway to run to a store or your favorite restaurant, or worse yet, cook dinner? With ghost restaurants you don’t have to. Ghost restaurants are basically just large kitchens where food is prepared solely for delivery, eliminating the problem of underutilized space. There are plenty of benefits to the delivery only restaurant concept:

  1. When your presence is solely online or via an app, you can change menu items, concepts, and hours without having to update signage or printed materials.
  2. You don’t need a large space to operate because you’re not seating customers. Your labor costs are lower and you’ll spend less on start up because you don’t need to buy as many supplies.
  3. The traditional restaurant business model calls for high upfront investments and large overhead costs which makes growth difficult when you’re getting started.
  4. Ghost restaurants are easier to manage as they require less money to get started. The biggest investment is getting noticed. Partner with some of those third party delivery services that are already well established.

Time will tell if this trend has the potential for longevity, but it’s definitely something to pay attention to. Given that food delivery continues to grow in popularity and profit, chances are we’re going to see ghost restaurants continue to grow in popularity.