Finance:Virtual restaurant

From HandWiki
Short description: Delivery-only restaurant
A virtual restaurant in Columbus, Ohio in 2020

A virtual restaurant, also known as a ghost kitchen, cloud kitchen or dark kitchen, is a food service business that serves customers exclusively by delivery and pick-up based on phone and online ordering.[1] Virtual restaurants are stand-alone businesses that either operate out of an existing restaurant's kitchen or from a separate kitchen set-up away from a restaurant.[2][3][4] By not having a full-service restaurant with a storefront and dining room, virtual restaurants can economize by occupying cheaper real estate.[5][6] The reduced space lowers overall overhead and operational costs, thus yielding higher profit margins, as the price of the food provided is typically not changed.[7] The virtual restaurant's single kitchen format allows for multiple brands to share kitchen space.[2][8][9]

Background

With the rise of urbanization and an increasingly busy lifestyle, the demand for food delivery services has surged, resulting in a shift from traditional dining experiences to ordering food online.[10][11] Virtual restaurants gained significant notice during the COVID-19 pandemic in 2020, when many restaurants were either completely idled due to restrictions on public dining, or curtailed significantly as very low numbers of patrons were permitted to be served on-premises even as the situation recovered.[12] At the same time, demand for home delivery of food expanded as people were required to stay at home. Ghost kitchens helped brick-and-mortar restaurants recoup their losses and minimize employee layoffs by allowing them to prepare food for multiple brands and keep themselves in business.[13]

Virtual restaurants are set up within existing restaurants, allowing businesses to cut costs by sharing space.[8] Virtual restaurants also save money by avoiding dine-in service through reliance on delivery service. Virtual restaurants rely on their own delivery drivers or third-party delivery apps such as Grubhub, Uber Eats, Postmates and DoorDash to deliver food to customers.[2][3][14]

A typical virtual restaurant location is able to accommodate the preparation of several different types of cuisines.[15][16] The strategy of having multiple brands and cuisines can target a broader range of customers. Food can be prepared by specialty chefs or any range of cooks. Virtual restaurants are intended for people looking for professionally-cooked food with the convenience of local delivery.[6]

Function

The lack of a physical location allows companies to experiment with new menus, brands, and concepts with ease and low risk. Menus can be adjusted to match current trends or target multiple demographics with a variety of cuisines.[13] The online nature of ghost kitchens makes it possible for virtual restaurants to track customer data and analytics through the food ordering process and make data-driven decisions. They can track the popularity of items, wait times, and customer feedback via ratings and adjust their menus accordingly.[6]

Criticism

Ghost restaurants have been criticized for unpleasant working conditions, cramped and windowless kitchen spaces, and acting as fronts for other restaurants.[17][18][19]

In the United Kingdom, restaurant operators The Restaurant Group and Casual Dining Group were criticised in 2019 over a lack of transparency regarding virtual restaurant brands. The companies were found to be operating several virtual brands which sold similar or identical food to their more popular high-street brands.[20][21]

List of associated chain restaurants

Several virtual restaurant brands have associated brick-and-mortar locations. The following are virtual restaurants known to use ghost kitchens.

  • Burger Den and Melt Down are ghost kitchen brands owned and operated by Denny's.[22]
  • Conviction Chicken is a ghost kitchen operated by TGI Fridays.[23]
  • Cosmic Wings and Neighborhood Wings are ghost kitchens operated by Applebee's.[24][25]
  • Dockside Charlie's, Coop & Run, and Underground Chuck's are ghost kitchens operated by O'Charley's.[26]
  • Fresh Set, Chicken Sammy's, and The Wing Dept. are ghost kitchens operated by Red Robin.[27]
  • Guy Fieri's Flavortown Sports Kitchen is a virtual restaurant chain operated by chef Guy Fieri.[28]
  • Hootie's Burger Bar, Hootie's Bait and Tackle, and Hootie's Chicken Tenders are ghost kitchen brands owned and operated by Hooters.[29]
  • It's Just Wings and Maggiano's Italian Classics are ghost kitchens operated by Chili's.[30][29]
  • Libby's BBQ is a ghost kitchen operated by Ruby Tuesday.[31]
  • MrBeast Burger is a ghost kitchen brand.[32]
  • Pasqually's Pizza & Wings is a ghost kitchen brand owned and operated by Chuck E. Cheese.[29]
  • Rotisserie Roast is a ghost kitchen operated by Boston Market.[33]
  • Slo Roast is a ghost kitchen operated by BJ's Restaurants.[29]
  • Tender Shack is a ghost kitchen operated by Outback Steakhouse.[34]
  • Thighstop is a ghost kitchen operated by Wingstop.[35]
  • Thrilled Cheese, Super Mega Dilla, Pardon My Cheesesteak, and Tender Fix are all ghost kitchens operated by IHOP.[36][37]
  • Twisted Tenders and Embers BBQ are ghost kitchens operated by Logan's Roadhouse.[38]
  • Wing Nut is a ghost kitchen operated by Primanti Bros.[39]
  • Wow Bao, Wingville, and Macaroniville are ghost kitchens operated by Fazoli's.[40][41][42]

See also

  • Concession stand
  • Food truck
  • Virtual Dining Concepts
  • The Cloud (platform)

References

  1. ↑ Shieber, Jonathan (November 2018). "The next big restaurant chain may not own any kitchens". Verizon Media. https://techcrunch.com/2018/10/07/the-next-big-restaurant-chain-may-not-own-any-kitchens/. 
  2. ↑ 2.0 2.1 2.2 Isaac, Mike; Yaffe-Bellany, David (2019-08-14). "The Rise of the Virtual Restaurant" (in en-US). https://www.nytimes.com/2019/08/14/technology/uber-eats-ghost-kitchens.html. 
  3. ↑ 3.0 3.1 "Wing Squad Introduces Delivery Only Restaurant Concept" (in en-US). 2020-02-06. https://www.eatinseattle.com/2020/02/06/wing-squad-introduces-delivery-only-restaurant-concept/. 
  4. ↑ Coley, Ben (July 2020). "Chuck E. Cheese is Serious About Pasqually's Pizza & Wings" (in en). https://www.qsrmagazine.com/fast-food/chuck-e-cheese-serious-about-pasquallys-pizza-wings. 
  5. ↑ Holmes, Mona (May 23, 2018). "Here's Why a Lot of Delivery Food Isn't Coming From Actual Restaurants The incubators are like WeWork for the restaurant industry". Vox Media. https://la.eater.com/2018/5/23/17377966/pasadena-kitchen-food-delivery-demand. 
  6. ↑ 6.0 6.1 6.2 Chamlee, Virginia (September 30, 2016). "Are Virtual Restaurants Dining's Next Hot Trend?". Eater. https://www.eater.com/2016/9/30/12988932/delivery-only-restaurants-munchery-ando-foodcheri. 
  7. ↑ Ungerleider, Neal (2017-01-20). "Hold The Storefront: How Delivery-Only "Ghost" Restaurants Are Changing Takeout" (in en-US). https://www.fastcompany.com/3064075/hold-the-storefront-how-delivery-only-ghost-restaurants-are-changing-take-out. 
  8. ↑ 8.0 8.1 King, Danny (2020-05-06). "'Ghost' kitchens scare up business as restaurants grapple with social-distancing impact" (in en-US). https://www.houstonchronicle.com/business/texas-inc/article/ghost-kitchens-houston-restaurants-stay-at-home-15246141.php. 
  9. ↑ Olson, Alexandra (September 28, 2022). "The rise of 'ghost kitchens': Here's what the online food ordering boom has produced" (in en-US). https://www.usatoday.com/story/tech/2019/10/21/ghost-kitchen-virtual-restaurant-heres-how-works/4053659002/. 
  10. ↑ Ahuja, Kabir; Chandra, Vishwa; Lord, Victoria; Peens, Curtis (22 September 2021). "Ordering in: The rapid evolution of food delivery". https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ordering-in-the-rapid-evolution-of-food-delivery. 
  11. ↑ Fizpatrick, Sarah (March 2021). "The rise of dark kitchens" (in de-DE). https://www.nortonrosefulbright.com/de-de/wissen/publications/b8b6b1bb/the-rise-of-dark-kitchens. 
  12. ↑ "Struggling foodservice brands must embrace dark kitchens, says GlobalData" (in en-GB). 2020-08-10. https://www.globaldata.com/struggling-foodservice-brands-must-embrace-dark-kitchens-says-globaldata/. 
  13. ↑ 13.0 13.1 "Food Theory: MrBeast Burger Is NOT What You Think..." (in en). The Food Theorists. January 9, 2021. https://www.youtube.com/watch?v=uNLwgYG4EdA. 
  14. ↑ Jennings, Lisa (2020-01-31). "Planet Hollywood founder Robert Earl builds virtual restaurant empire of delivery-only brands" (in en). https://www.restaurant-hospitality.com/new-restaurant-concepts/planet-hollywood-founder-robert-earl-build-s-virtual-restaurant-empire. 
  15. ↑ Turow-Paul, Eve (March 24, 2017). "That Restaurant On Seamless Might Not Actually Exist". https://www.forbes.com/sites/eveturowpaul/2017/03/24/that-restaurant-on-seamless-might-not-actually-exist/#75d7057017a2. "if you have a 6,000 square foot kitchen you can make very high-quality food and have many different styles of cuisine coming from the same kitchen." 
  16. ↑ Channick, Robert (March 27, 2017). "9 restaurants, 1 kitchen, no dining room". Tribune Publishing Company. https://www.chicagotribune.com/business/ct-chicago-virtual-restaurants-0328-biz-20170309-story.html. "Butcher Block, Milk Money and Leafage share the same address, chefs and owner." 
  17. ↑ Harris, John (2018-10-09). "Are dark kitchens the satanic mills of our era?" (in en-GB). The Guardian. ISSN 0261-3077. https://www.theguardian.com/commentisfree/2018/oct/09/dark-kitchens-satanic-mills-deliveroo. 
  18. ↑ Glorioso, Chris; Givens, Ann; Stulberger, Evan (November 11, 2015). "Restaurants Use False Identities on Food Delivery Websites". NBC News (New York). http://www.nbcnewyork.com/news/local/Seamless-Restaurant-Grubhub-Fake-Eatery-Unregulated-Kitchen-Investigation-I-Team-New-York-City-344708652.html. 
  19. ↑ Butler, Sarah (28 October 2017). "How Deliveroo's 'dark kitchens' are catering from car parks". The Guardian. https://www.theguardian.com/business/2017/oct/28/deliveroo-dark-kitchens-pop-up-feeding-the-city-london. 
  20. ↑ Lott-Lavigna, Ruby (January 23, 2019). "Why Are Chain Restaurants Using Different Names on Delivery Apps?" (in en). https://www.vice.com/en/article/8xy93b/why-are-high-street-restaurants-masquerading-as-virtual-takeaways. 
  21. ↑ Beardsworth, Luke (2019-06-28). "Restaurants accused of lacking transparency over 'virtual brands'" (in en). https://www.lancs.live/whats-on/food-drink-news/restaurant-groups-accused-lacking-transparency-16488888. 
  22. ↑ Ruggless, Ron (13 January 2021). "Denny's to offer Burger den, Melt Down virtual brands". https://www.nrn.com/family-dining/denny-s-offer-burger-den-melt-down-virtual-brands. 
  23. ↑ Durbin, Dee-Ann (February 17, 2021). "Delivery-only restaurant brands see pandemic-fueled growth". https://abcnews.go.com/Business/wireStory/delivery-restaurant-brands-pandemic-fueled-growth-75944109. 
  24. ↑ Tyko, Kelly (February 17, 2021). "Cheetos-flavored wings are now a thing from new online concept Cosmic Wings via Uber Eats". https://www.usatoday.com/story/money/food/2021/02/17/cosmic-wings-flamin-hot-cheetos-wings-applebees-uber-eats/6707247002/. 
  25. ↑ Pomranz, Mike (19 May 2020). "Applebee's Side Hustle Restaurant Appears on Delivery Apps as 'Neighborhood Wings'" (in en). https://www.foodandwine.com/news/applebees-delivery-app-ghost-restaurant-neighborhood-wings. 
  26. ↑ Dominko, Mura (18 June 2021). "This Beloved Southern Chain Has Launched Two New Fast-Food Brands". https://www.eatthis.com/news-ocharleys-launches-two-new-fast-food-brands/. 
  27. ↑ Hamstra, Mark (10 March 2021). "Red Robin Gourmet Burgers rolls out three virtual restaurant brands nationwide". https://www.nrn.com/restaurants-ready/red-robin-gourmet-burgers-rolls-out-three-virtual-restaurant-brands-nationwide. 
  28. ↑ Poiuso, Pailo (11 February 2021). "The Surprising Restaurant Chain Guy Fieri Is Operating Ghost Kitchens Out Of". https://www.mashed.com/332589/the-surprising-restaurant-chain-guy-fieri-is-operating-ghost-kitchens-out-of/. 
  29. ↑ 29.0 29.1 29.2 29.3 Lucas, Amelia (2021-09-06). "The new restaurant that just delivered dinner could be a spinoff of one of these popular chains". https://www.cnbc.com/2021/09/06/these-restaurant-chains-have-created-spinoff-virtual-brands-.html. 
  30. ↑ Garcia, Tonya (2020-08-14). "Chili's parent says its weeks-old virtual chicken chain It's Just Wings will soon be a $150 million brand". https://www.marketwatch.com/story/chilis-parent-says-its-weeks-old-virtual-chicken-chain-its-just-wings-will-soon-be-a-150-million-brand-2020-08-13. 
  31. ↑ "The Truth About Ruby Tuesday's New 'Libby's BBQ' Menu" (in en-US). 2021-07-15. https://www.mashed.com/462301/the-truth-about-ruby-tuesdays-new-libbys-bbq-menu/. 
  32. ↑ Conrad, Marissa (February 25, 2021). "You've Heard of Ghost Kitchens. Meet the Ghost Franchises.". The New York Times. https://www.nytimes.com/2021/02/25/dining/ghost-kitchen-mrbeast-burger.html. 
  33. ↑ Lee, Alicia (22 May 2020). "Some chain restaurants have turned to food delivery apps but they're hidden behind different names". https://www.cnn.com/2020/05/22/us/grubhub-chuck-e-cheese-pasquallys-applebees-restaurants-trnd/index.html. 
  34. ↑ Haddon, Heather; Rana, Preetika (2021-03-28). "Those Cosmic Wings You Had Delivered? They're Really From Applebee's.". https://www.morningstar.com/news/dow-jones/202103282310/those-cosmic-wings-you-had-delivered-theyre-really-from-applebees. 
  35. ↑ Wiener-Bronner, Danielle (21 June 2021). "There's a chicken wing shortage. So this chain wants you to start loving thighs". https://www.cnn.com/2021/06/21/business/chicken-thighs-wingstop/index.html. 
  36. ↑ Coley, Ben (March 7, 2022). "IHOP Transforms into Sophisticated Digital Company". https://www.fsrmagazine.com/chain-restaurants/ihop-transforms-sophisticated-digital-company. 
  37. ↑ Bilyeu, Jack (2023-03-14). "Ghost kitchens on the rise in Memphis" (in en). https://www.fox13memphis.com/news/ghost-kitchens-on-the-rise-in-memphis/article_d76bed24-c2d0-11ed-8d2f-63d3d2b0e1ac.html. 
  38. ↑ "Logan's Roadhouse Owner Launches Virtual Chicken Tenders Concept". December 16, 2020. https://www.fsrmagazine.com/content/logans-roadhouse-owner-launches-virtual-chicken-tenders-concept. 
  39. ↑ Guszkowski, Joe (15 March 2023). "After 90 years, Primanti Bros. is still evolving". https://www.restaurantbusinessonline.com/operations/after-90-years-primanti-bros-still-evolving. 
  40. ↑ Ferguson, Christa (2021-02-22). "Ghost kitchens bring Chicago's Wow Bao to West Michigan". https://www.woodtv.com/news/kent-county/ghost-kitchens-bring-chicagos-wow-bao-to-west-michigan/. 
  41. ↑ Coley, Ben (April 12, 2021). "Why Fazoli's is One of the Pandemic's Restaurant Winners". https://www.qsrmagazine.com/exclusives/why-fazolis-one-pandemics-restaurant-winners. 
  42. ↑ "Fazoli's Launches New Chicken Wing Concept 'Wingville'". September 28, 2020. https://www.qsrmagazine.com/news/fazolis-launches-new-chicken-wing-concept-wingville. 



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