How to make ghost kitchen and virtual brands more profitable?

Oct 22, 2020

How to make ghost kitchen and virtual brands more profitable? | Shopurfood
Ghost kitchen for restaurant

As a result of the pandemic, consumers are more connected than ever before and this connectivity has led to the growth of digital ordering habits paving the way for an on-demand economy.

Ghost kitchens are just the next step in this trend as it is a delivery only concept and is proving to be a profitable proposition in the wake of the pandemic to regain lost revenue but certain factors like food costs, labour, marketing and brand equity need to be taken into consideration to be assured of profits.

It has been very difficult for restaurants, especially the independent ones to meet the skyrocketing delivery demands as a result of which ghost kitchens are feeling the rise in prominence and there are also estimates that the ghost kitchens could generate $1 trillion by 2030 globally.

Benefits of Ghost kitchens

The major advantage of ghost kitchens come from the fact that the labor spending is minimized and it helps restaurants to adapt to the new trend of maximizing deliveries.

Here we will take look at some of the measures that need to be taken so as to bring in more profits and revenue to your ghost kitchens

The right menu pricing strategy

It is very important to find the right pricing menu strategy.

Absolute Brands, a ghost kitchen franchise provider, arrived at their pricing after a lot of trial and error as menu prices need to cover the third party delivery commissions, operating & packaging costs, You should try to reduce the cost on packaging until the consumers start responding to your brand with enthusiasm.

You can do the initial packaging with just a stamp implying the brand name on a container.

The expenses should be covered in pricing and that too without affecting the sales by going to the higher side.

Finding an ideal marketing plan

Having the right marketing strategies for restaurants is really important especially when you are off-premise. For instance, The Absolute Brands, created websites and mobile apps and boosted the digital marketing aspect to reach more of the target audience. Consumers need to know what you are doing then only will sales happen and for that you need to engage them online.

The factor of labor and operational costs

One of the factors that make a virtual brand successful is their ability to understand their food, delivery and operational costs. Operators have to make at least $ 65,000 in ghost kitchen sales to level out. Managing your hours using the staff available at hand is also crucial to enhance operations and increase profitability. Ghost kitchens could be busy only for two hours during breakfast, lunch, dinner and therefore staff can be involved in other business related activities like marketing, finance, prep, inventory and other jobs for increasing the output of your kitchen.

Conclusion

The raise of virtual kitchens and brands may well add a new dimension to the restaurant business. However, it is still not time to fully understand the effects that this model is going to have in the industry. You need to figure out a perfect plan according to your restaurant model before entering into this space to yield maximum results!

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Kiruthika Blogger

Kiruthika

Kiruthika is a Content writer and blogger at Pofi Technologies. Other than her interest in writing, she can be seen listening to songs, reading or traveling.
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