The rise of ghost kitchens

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Convenience has fast become the key differentiating factor for businesses, with consumers prioritising time-saving services that make their lives easier.

And food is no different, with consumers willing to pay a premium to eat good food from the comfort of their own homes. In fact, the UK home delivery industry is now worth a whopping £14.3 billion, growing by over 87% since the global pandemic.

What started as a social distancing necessity has grown into a convenience empire, with thousands of new businesses popping up and restaurants diversifying to meet the demand for food delivery.

Ghost kitchens or ‘dark kitchens’ started gaining traction in 2017 as unbranded spaces specifically designed to cater for food deliveries. But with the pandemic accelerating the growth of the convenience economy, they have exploded all over the western world, with delivery services such as Deliveroo experiencing a 45% increase in outlet sign-ups.

These kitchens have no dine-in amenities and are designed for businesses to minimise the substantial overheads associated with customer-facing hospitality including staffing, branding, cutlery and crockery, seating and property rent in prime urban locations.

Ghost kitchens enable ‘virtual’ food brands with no physical presence or existing outlets to expand their offering, using delivery partners to distribute meals to a wider geographical area. They come in a variety of forms:

• Single brand kitchens – designed for larger brands such as Wagamama or McDonalds to fulfil an increasing demand for at-home orders.
• Multi-brand kitchens – designed for smaller, independent food brands and virtual outlets, providing chefs with a functional, rented shared workspace.
• Restaurant partnerships – Smaller food outlets partner with larger restaurants, bars or pubs to rent their kitchen space and staff, to fulfil delivery orders. Common in restaurant and pub chains such as Slug and Lettuce and Wetherspoons to generate additional streams of income.

With this boom in business, there are, of course, challenges. A lack of physical presence for some companies can create a lack of brand loyalty, engagement or awareness, without the essential touch points of a customer-facing outlet. Businesses rely heavily on external apps for delivery, using third-party services, making it difficult to ensure the very best customer experience. Another challenge faced by ghost kitchen users is menu management, as businesses struggle to stay on top of orders, stock and daily operations.

Here we discuss how Kitchen CUT’s CPU and warehouse solutions can benefit businesses that operate from ghost kitchens, to help them successfully optimise their operations to fulfil increasing orders and boost profits.

Kitchen CUT’s Central Processing Unit (CPU) and warehouse software helps brands to manage outlets, kitchens and stores from one device, enabling slick and seamless operations.

When delivering food, staying compliant with allergen and nutrition regulations is essential for brands to secure their reputation and keep customers safe. With Kitchen CUT, ghost kitchen operators can standardise recipes to ensure all dishes are of a consistent quality and compliant with the nutritional and environmental information their business reports.

In such a competitive food landscape, a brand’s reputation has never been more important. Ensure every dish is consistent with what’s shown on your menu and what is served in your restaurant with ingredient management software. Use Kitchen CUT’s menu optimisation tools to design crowd-pleasing dishes that travel well and achieve the highest margins, ensuring top quality for your customers, whilst boosting your bottom line. Easily change dishes, adjust pricing and tweak ingredients, depending on the day or season, to maximise profits and reduce food waste.

With multiple sites to operate, ordering can become a minefield. Kitchen CUT’s CPU software automates stock replenishment, streamlining the ordering process and allowing chefs to order in bulk, to save time and money.

With full visibility of supply and demand using Kitchen CUT’s reporting suite, ghost kitchen operators can successfully forecast using reliable data to control stock levels and portion sizes accordingly. Use the upgraded unit builder to convert batch recipes, using unlimited grams, cases, slices, spoons, ladles, cups or kegs, and customise recipes to suit delivery needs, all while ensuring consistent quality.

With over 40% of UK consumers ordering food for delivery at least once a month, ghost kitchens won’t be going anywhere soon. With tailored software solutions, food businesses can optimise their operations to produce consistent, quality dishes for delivery, to either grow their brand or supplement their restaurant’s income. By using smart stock controls and seamless menu management, business owners can overcome the challenges that come with ghost kitchens to maximise their profits.