Restaurant Industry 2020: The Benefits of Ghost Kitchens

This is an excerpt from Big 7 Media‘s 100-page report on The Future of the Restaurant Industry in 2020.

This detailed report provides current operational guidance and insight into emerging hospitality trends for 2020-21. We investigate the trends that are impacting the industry, both currently and in the future. You will learn: how to increase sales, current and future trends, supply chain issues and more.

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The Rise of ‘Ghost Kitchens’ and Their Future in a Post-Covid-19 Industry

Ghost kitchens were one of the stand-out trends of 2019103, running in parallel with the success of delivery apps to bring a new concept to the restaurant industry: one where you didn’t even need an actual restaurant.

Benefits of Ghost Kitchens:

• Reduced Rent

Rent is a huge cost for the majority of restaurants, with rent in NYC for a “semi-trendy area” costing around $120-per-square-foot. Ghost kitchens don’t have to be located in high traffic areas and can be set up almost anywhere.

• Lower Overheads

Unlike a traditional restaurant, you don’t have to spend money on decoration; which can cost around $160-per-square-foot. There is also decreased labour spend, with no need for FOH staff.

• Streamlined Workflow

A core focus of only-delivery orders will eliminate the logistics of cooking for both in-house options and delivery/takeout. Chefs can get creative with inventory to reduce food waste, optimise kitchen space and workflow, and test new menu items at less risk.

• Increased Speed to Market

In the US, it will cost on average $275,000 to open a restaurant. In comparison, it costs on average of $20,000 to open a ghost kitchen. This is appealing to restaurateurs who have either shut down their brick and mortar spaces or simply want to test a new concept.

Big 7 Media Report: The Future of the Restaurant Industry in 2020 –

Table of Contents:

• Introduction
• Restaurant Industry Overview
• Covid-19: Steps & Barriers to Reopening
• Produce Supply Chain: Impact on Menu Model
• Key Trends & Developments in Restaurant Sectors
• Food Delivery Trends & Technology
• Marketing & Social Media
• Beverage Trends within the Restaurant Industry
• Looking to 2021 – The Future
• Endnotes