Virtual restaurant explained

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] By not having a full-service restaurant with a storefront and dining room, virtual restaurants can economize by occupying cheaper real estate.[3] [4] 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.[5] The virtual restaurant's single kitchen format allows for multiple brands to share kitchen space.[6]

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.[7] [8] 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.[9] 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.[10]

Virtual restaurants are set up within existing restaurants, allowing businesses to cut costs by sharing space.[11] 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.[12] [13] [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.[4]

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.[10] 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.[4]

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.

United States

Brazil

Canada

See also

Notes and References

  1. Web site: Shieber . Jonathan . November 2018 . The next big restaurant chain may not own any kitchens . 2 May 2019 . . Verizon Media . 26 December 2019 . https://archive.today/20191226084659/https://techcrunch.com/2018/10/07/the-next-big-restaurant-chain-may-not-own-any-kitchens/ . live .
  2. Web site: Coley . Ben . July 2020 . Chuck E. Cheese is Serious About Pasqually's Pizza & Wings . 2020-11-12 . QSR magazine . en . 2020-07-13 . https://web.archive.org/web/20200713154817/https://www.qsrmagazine.com/fast-food/chuck-e-cheese-serious-about-pasquallys-pizza-wings . live .
  3. Web site: 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 . 2 May 2019 . Eater Los Angeles . Vox Media . 27 May 2018 . https://web.archive.org/web/20180527122711/https://la.eater.com/2018/5/23/17377966/pasadena-kitchen-food-delivery-demand . live .
  4. News: Chamlee . Virginia . September 30, 2016 . Are Virtual Restaurants Dining's Next Hot Trend? . Eater . June 14, 2017 . October 2, 2016 . https://web.archive.org/web/20161002131211/https://www.eater.com/2016/9/30/12988932/delivery-only-restaurants-munchery-ando-foodcheri . live .
  5. Web site: Ungerleider . Neal . 2017-01-20 . Hold The Storefront: How Delivery-Only "Ghost" Restaurants Are Changing Takeout . 2021-04-30 . . en-US . 2019-06-01 . https://web.archive.org/web/20190601040232/https://www.fastcompany.com/3064075/hold-the-storefront-how-delivery-only-ghost-restaurants-are-changing-take-out . live .
  6. Web site: Olson . Alexandra . September 28, 2022 . The rise of 'ghost kitchens': Here's what the online food ordering boom has produced . 2020-11-12 . . en-US . 2021-02-26 . https://web.archive.org/web/20210226005615/https://www.usatoday.com/story/tech/2019/10/21/ghost-kitchen-virtual-restaurant-heres-how-works/4053659002/ . live .
  7. Web site: Ahuja . Kabir . Chandra . Vishwa . Lord . Victoria . Peens . Curtis . Ordering in: The rapid evolution of food delivery . . 17 April 2023 . 22 September 2021 . 8 April 2023 . https://web.archive.org/web/20230408085924/https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ordering-in-the-rapid-evolution-of-food-delivery . live .
  8. Web site: Fizpatrick . Sarah . The rise of dark kitchens . Norton Rose Fullbright . 2023-03-22 . de-DE . March 2021 . 2023-03-22 . https://web.archive.org/web/20230322154806/https://www.nortonrosefulbright.com/de-de/wissen/publications/b8b6b1bb/the-rise-of-dark-kitchens . live .
  9. Web site: 2020-08-10 . Struggling foodservice brands must embrace dark kitchens, says GlobalData . 2021-04-30 . GlobalData . en-GB . 2021-03-04 . https://web.archive.org/web/20210304215019/https://www.globaldata.com/struggling-foodservice-brands-must-embrace-dark-kitchens-says-globaldata/ . live .
  10. Web site: January 9, 2021 . Food Theory: MrBeast Burger Is NOT What You Think... . YouTube . The Food Theorists . en . 2021-04-30 . 2021-04-17 . https://web.archive.org/web/20210417181944/https://www.youtube.com/watch?v=uNLwgYG4EdA . live .
  11. Web site: King . Danny . 2020-05-06 . 'Ghost' kitchens scare up business as restaurants grapple with social-distancing impact . 2020-11-12 . . en-US . 2021-01-15 . https://web.archive.org/web/20210115134554/https://www.houstonchronicle.com/business/texas-inc/article/ghost-kitchens-houston-restaurants-stay-at-home-15246141.php . live .
  12. Web site: Isaac . Mike . Yaffe-Bellany . David . 2019-08-14 . The Rise of the Virtual Restaurant . 2020-11-12 . . en-US . 2022-01-18 . https://web.archive.org/web/20220118122340/https://www.nytimes.com/2019/08/14/technology/uber-eats-ghost-kitchens.html . live .
  13. Web site: 2020-02-06 . Wing Squad Introduces Delivery Only Restaurant Concept . 2020-11-12 . EatSeattle . en-US . 2021-01-19 . https://web.archive.org/web/20210119122914/https://www.eatinseattle.com/2020/02/06/wing-squad-introduces-delivery-only-restaurant-concept/ . live .
  14. Web site: Jennings . Lisa . 2020-01-31 . Planet Hollywood founder Robert Earl builds virtual restaurant empire of delivery-only brands . 2020-11-12 . Restaurant Hospitality . en.
  15. Web site: Turow-Paul . Eve . March 24, 2017 . That Restaurant On Seamless Might Not Actually Exist . . 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. . May 22, 2019 . January 28, 2021 . https://web.archive.org/web/20210128114907/https://www.forbes.com/sites/eveturowpaul/2017/03/24/that-restaurant-on-seamless-might-not-actually-exist/#75d7057017a2 . live .
  16. Web site: Channick . Robert . March 27, 2017 . 9 restaurants, 1 kitchen, no dining room . . Tribune Publishing Company . Butcher Block, Milk Money and Leafage share the same address, chefs and owner. . May 22, 2019 . March 27, 2017 . https://web.archive.org/web/20170327201720/https://www.chicagotribune.com/business/ct-chicago-virtual-restaurants-0328-biz-20170309-story.html . live .
  17. News: Harris . John . 2018-10-09 . Are dark kitchens the satanic mills of our era? . en-GB . . 2019-04-15 . 0261-3077 . 2021-01-28 . https://web.archive.org/web/20210128012722/https://www.theguardian.com/commentisfree/2018/oct/09/dark-kitchens-satanic-mills-deliveroo . live .
  18. News: Glorioso . Chris . Givens . Ann . Stulberger . Evan . November 11, 2015 . Restaurants Use False Identities on Food Delivery Websites . . New York . October 28, 2017 . November 23, 2019 . https://web.archive.org/web/20191123094525/https://www.nbcnewyork.com/news/local/Seamless-Restaurant-Grubhub-Fake-Eatery-Unregulated-Kitchen-Investigation-I-Team-New-York-City-344708652.html . live .
  19. News: Butler . Sarah . How Deliveroo's 'dark kitchens' are catering from car parks . 10 November 2023 . . 28 October 2017 . 10 November 2023 . https://web.archive.org/web/20231110010205/https://www.theguardian.com/business/2017/oct/28/deliveroo-dark-kitchens-pop-up-feeding-the-city-london . live .
  20. Web site: Lott-Lavigna . Ruby . January 23, 2019 . Why Are Chain Restaurants Using Different Names on Delivery Apps? . 2021-02-20 . . en . 2020-12-05 . https://web.archive.org/web/20201205142512/https://www.vice.com/en/article/8xy93b/why-are-high-street-restaurants-masquerading-as-virtual-takeaways . live .
  21. Web site: Beardsworth . Luke . 2019-06-28 . Restaurants accused of lacking transparency over 'virtual brands' . 2021-02-20 . LancsLive . en . 2021-11-27 . https://web.archive.org/web/20211127004701/https://www.lancs.live/whats-on/food-drink-news/restaurant-groups-accused-lacking-transparency-16488888 . live .
  22. Web site: Ruggless . Ron . 13 January 2021 . Denny's to offer Burger den, Melt Down virtual brands . Nation's Restaurant News . 5 September 2022 . 5 September 2022 . https://web.archive.org/web/20220905205134/https://www.nrn.com/family-dining/denny-s-offer-burger-den-melt-down-virtual-brands . live .
  23. Web site: Durbin . Dee-Ann . February 17, 2021 . Delivery-only restaurant brands see pandemic-fueled growth . . dead . https://web.archive.org/web/20210217134254/https://abcnews.go.com/Business/wireStory/delivery-restaurant-brands-pandemic-fueled-growth-75944109 . February 17, 2021.
  24. Web site: Tyko . Kelly . February 17, 2021 . Cheetos-flavored wings are now a thing from new online concept Cosmic Wings via Uber Eats . . September 5, 2022 . July 13, 2022 . https://web.archive.org/web/20220713102740/https://www.usatoday.com/story/money/food/2021/02/17/cosmic-wings-flamin-hot-cheetos-wings-applebees-uber-eats/6707247002/ . live .
  25. Web site: Pomranz . Mike . Applebee's Side Hustle Restaurant Appears on Delivery Apps as 'Neighborhood Wings' . . 20 April 2023 . en . 19 May 2020 . 23 January 2021 . https://web.archive.org/web/20210123192924/https://www.foodandwine.com/news/applebees-delivery-app-ghost-restaurant-neighborhood-wings . live .
  26. Web site: Dominko . Mura . 18 June 2021 . This Beloved Southern Chain Has Launched Two New Fast-Food Brands . Eat This, Not That . 5 September 2022 . 10 December 2023 . https://archive.today/20231210023048/https://www.eatthis.com/news-ocharleys-launches-two-new-fast-food-brands/ . live .
  27. Web site: Hamstra . Mark . 10 March 2021 . Red Robin Gourmet Burgers rolls out three virtual restaurant brands nationwide . Nation's Restaurant News . 5 September 2022 . 5 September 2022 . https://web.archive.org/web/20220905205144/https://www.nrn.com/restaurants-ready/red-robin-gourmet-burgers-rolls-out-three-virtual-restaurant-brands-nationwide . live .
  28. Web site: Poiuso . Pailo . The Surprising Restaurant Chain Guy Fieri Is Operating Ghost Kitchens Out Of . . 6 May 2023 . 11 February 2021 . 6 May 2023 . https://web.archive.org/web/20230506230128/https://www.mashed.com/332589/the-surprising-restaurant-chain-guy-fieri-is-operating-ghost-kitchens-out-of/ . live .
  29. Web site: Lucas . Amelia . 2021-09-06 . The new restaurant that just delivered dinner could be a spinoff of one of these popular chains . 2021-12-13 . . 2021-12-08 . https://web.archive.org/web/20211208065041/https://www.cnbc.com/2021/09/06/these-restaurant-chains-have-created-spinoff-virtual-brands-.html . live .
  30. Web site: 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 . 2021-04-27 . MarketWatch . 2021-04-27 . https://web.archive.org/web/20210427025250/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 . live .
  31. Web site: 2021-07-15 . The Truth About Ruby Tuesday's New 'Libby's BBQ' Menu . 2023-07-17 . Mashed . en-US . 2023-07-17 . https://web.archive.org/web/20230717225721/https://www.mashed.com/462301/the-truth-about-ruby-tuesdays-new-libbys-bbq-menu/ . live .
  32. Web site: Some chain restaurants have turned to food delivery apps but they're hidden behind different names . . Lee . Alicia . 22 May 2020 . 5 September 2022 . 28 September 2022 . https://web.archive.org/web/20220928184635/https://www.cnn.com/2020/05/22/us/grubhub-chuck-e-cheese-pasquallys-applebees-restaurants-trnd/index.html . live .
  33. Web site: Haddon . Heather . Rana . Preetika . 2021-03-28 . Those Cosmic Wings You Had Delivered? They're Really From Applebee's. . 2021-04-27 . Morningstar . 2021-04-27 . https://web.archive.org/web/20210427025252/https://www.morningstar.com/news/dow-jones/202103282310/those-cosmic-wings-you-had-delivered-theyre-really-from-applebees . live .
  34. Web site: There's a chicken wing shortage. So this chain wants you to start loving thighs . . 21 June 2021 . Wiener-Bronner . Danielle . 5 September 2022 . 18 August 2022 . https://web.archive.org/web/20220818144655/https://www.cnn.com/2021/06/21/business/chicken-thighs-wingstop/index.html . live .
  35. Web site: Coley. Ben. March 7, 2022. IHOP Transforms into Sophisticated Digital Company. FSR magazine. September 5, 2022. October 6, 2022. https://web.archive.org/web/20221006193330/https://www.fsrmagazine.com/chain-restaurants/ihop-transforms-sophisticated-digital-company. live.
  36. Web site: Bilyeu . Jack . 2023-03-14 . Ghost kitchens on the rise in Memphis . 2023-03-19 . . en . 2023-03-19 . https://web.archive.org/web/20230319132901/https://www.fox13memphis.com/news/ghost-kitchens-on-the-rise-in-memphis/article_d76bed24-c2d0-11ed-8d2f-63d3d2b0e1ac.html . live .
  37. Web site: December 16, 2020 . Logan's Roadhouse Owner Launches Virtual Chicken Tenders Concept . FSR magazine . September 5, 2022 . July 17, 2022 . https://web.archive.org/web/20220717004829/https://www.fsrmagazine.com/content/logans-roadhouse-owner-launches-virtual-chicken-tenders-concept . live .
  38. Web site: After 90 years, Primanti Bros. is still evolving . Restaurant Business Online . 15 March 2023 . Guszkowski . Joe . 14 June 2023 . 14 June 2023 . https://web.archive.org/web/20230614020230/https://www.restaurantbusinessonline.com/operations/after-90-years-primanti-bros-still-evolving . live .
  39. Web site: Ferguson . Christa . 2021-02-22 . Ghost kitchens bring Chicago's Wow Bao to West Michigan . 2021-04-27 . woodtv . 2021-03-06 . https://web.archive.org/web/20210306235712/https://www.woodtv.com/news/kent-county/ghost-kitchens-bring-chicagos-wow-bao-to-west-michigan/ . live .
  40. Web site: Coley . Ben . April 12, 2021 . Why Fazoli's is One of the Pandemic's Restaurant Winners . QSR magazine . September 5, 2022 . July 13, 2022 . https://web.archive.org/web/20220713102741/https://www.qsrmagazine.com/exclusives/why-fazolis-one-pandemics-restaurant-winners . live .
  41. Web site: September 28, 2020 . Fazoli's Launches New Chicken Wing Concept 'Wingville' . QSR magazine . September 5, 2022 . September 12, 2022 . https://web.archive.org/web/20220912213416/https://www.qsrmagazine.com/news/fazolis-launches-new-chicken-wing-concept-wingville . live .
  42. Web site: Neris . Jorge . 2021-12-12 . Aussie Grill aposta no delivery com receitas exclusivas. . 2024-05-11 . Panorama Goiás .
  43. Web site: 2021-08-04 . Durty Dawgs Enters The Weiners Circle . 2024-06-13 . Campaign Canada .

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