The Continued Rise of Ghost Kitchens and Why They’re Being Invested In

The Continued Rise of Ghost Kitchens 

and Why They’re Being Invested In

Many business ventures have turned towards the ephemeral. Startups design products like SnapChat or introduce features like stories which are focused on the fleeting – Clubhouse is the latest example in the social media landscape. Pop-up stores are another example of this movement towards for-a-limited-time-only presence in malls and shopping estates, as are the exclusive collaborations which fuel these temporary shopfronts.

The food industry is no stranger to this type of business model. Restaurant pop-ups have been popular for a long time. Many chefs focusing on this model rather than establishing consistent residencies. It allows some to impress investors and business people to allow them to then open their own place. Still, the premise is that a space, for a specific and short period, is entirely theirs, setting an atmosphere and a menu to create a distinct experience – it’s an art installation, as much as anything. However, a new adaptation of this is taking over: ghost kitchens.

 

Ghost Kitchens
Some restaurateurs are opting for delivery-only. To achieve this, they are making use of ghost kitchens. There appears to be two approaches to these spaces. One is that the ghost kitchen is hired and filled by the restaurateurs own staff, to prepare and cook meals and then organise their own delivery system, making use of existing services like Uber Eats or Deliveroo. Some are calling these types of business “digital restaurants,” as they follow the technology trend of picking and choosing when to appear as a physical entity.

There are many perks to this business model. There will be no continued rent on a building, for instance, which is, obviously, a considerable cost for many establishments. Also, no needing to account for the purchase and maintenance of equipment and the salaries of a larger workforce mean that overheads are reduced further.

The downsides and upsides are that the marketing strategy is hugely important. This may sound like a silly thing to say, as its applicable to all businesses anywhere. However, not having a geographically fixed location means that it’s important to work hard to earn the attention of eyeballs online. It’s difficult for a digital roamer to wonder past your Instagram, Facebook, or Twitter page without meaning to, making a mental note to try that place out in the near future with some friends. As such, many of the key players in the early parts of the ghost kitchen scene have been celebrities which huge existing audiences. 

Mr Beast’s Burgers
Mr Beast, a YouTuber with 56.9 million subscribers, whose content mostly revolves around gaming, excessive challenges, and philanthropy, opened Mr Beast’s Burgers on December 19 th and by the week of March 12th they had sold their one millionth burger, which is an average of 40 per day at each of their 300 locations across the United States of America and Canada. This is a promising start for the business. While it is someway off a lot of its competition (McDonalds, Burger King, etc.), it’s an important milestone in both Mr Beast’s endeavour and for ghost kitchens.

There have been some criticisms, though, which have followed Mr Beast’s Burgers – due to its profile – as some ghost kitchens are other business’s kitchens which have their own or other orders to fulfill and, therefore, puts extra workload on their staff.

Mr Beast continues to attract venture capitalist intentions, with his management company, Night Media, creating a venture studio to help nurture and grow its stars entrepreneurial endeavours, including his existing fast food business.

Gwyneth Paltrow’s Goop Kitchen
Gwyneth Paltrow, a Hollywood actor, author, and entrepreneur, founded Goop, a lifestyle company, in 2008. It is a company which has attract some controversies with its emphasis on wellness solutions and dieting tips that are based on “pseudo-science”. Despite this, Goop continues to be successful and has decided to set-up a delivery-only food service.

Their menu is at odds with Mr Beast’s Burger’s. Goop Kitchen is focused on healthy eating, using sustainable growing practices, and meeting Goop’s own standards for “cleanliness”. The service is geographically limited to Santa Monica, California. It may expand, as Paltrow’s company’s mission is to continue to grow and inspire a movement around these lifestyle choices.

Guy Fieri’s Flavortown
Guy Fieri is a restauranteur who made his name hosting shows on Food Network in the late 00s and has more recently become more of a meme online. He has still, though, the chops for keeping up the with restaurant industry by relieving Flavortown of its brick-and-mortar confines and taking it virtual. There are classic Fieri options on the menu and has already established operations in twenty-four states, with multiple outlets in many states. It’s aiming big, as his profile, knowledge, and contacts enable him to.

Ghost kitchens are another leap into the digital-first approach for businesses and the emphasis on being in a place just long enough.