Ghost Kitchens: The Secret to Opening a Profitable Restaurant

7 minutes

ghost kitchens

Are Restaurants Profitable?

It’s the age-old dilemma: you’re passionate about food, but you’re struggling to turn a profit. Countless restauranteurs have been stymied by narrow margins, high ordering costs, and low occupancy – today, a global pandemic has added another factor to the equation. How do you go about opening a profitable restaurant in a time like this? Research shows that almost 60% of restaurants fail within their first year of operation. That number rises to 80% by year five. These statistics indicate that passive owners won’t get very far. If you’re an active, involved restauranteur, your business won’t have to suffer the same fate. By leveraging creative opportunities, you can be part of the successful 20%. Today, we’d like to let you in on a secret that other restaurants don’t want you to know:  

Ghost kitchens have the power to transform your business (and your bottom line).


Opening a Restaurant: Then and Now

Decades ago, the process of opening a restaurant looked very different. While fast-food franchises dominate American life today, they were practically nonexistent until the 1950s, when the McDonald brothers took inspiration from Henry Ford’s assembly line. Their sale to Ray Kroc, an experienced businessman, changed the culinary landscape forever. In the 1990s, casual family dining boomed, further saturating the industry. Before these corporations came onto the scene, opening a restaurant was fairly straightforward. Locals with a bit of foodie flair would begin cooking for their friends and neighbors, eventually scaling up to meet demand. Today, fast-food giants occupy even the most rural towns; therefore, many more considerations are required for your business to compete. To stand out from the crowd, you’ll need to offer something different: a dish or cuisine that customers can only find at your restaurant. You’ll also have to get creative with your marketing, which usually means managing an array of location-based digital ads. Finally, branding is key; do customers see your logo and instantly associate it with delicious food? Even if your restaurant is ten, twenty, or thirty years old, you can still take advantage of these tactics. How? By dominating delivery apps with ghost kitchens.  

Ghost Kitchens Are the Future

Put simply, ghost kitchens are delivery-only restaurants. They operate out of your existing brick-and-mortar establishment at a fraction of the cost; no need to consider rent, ingredients, or renovations – everything from your current business can be shared across multiple brands. Sound good? Here’s how we help restaurants to create ghost kitchens.  

Check Out Your Competition

The first step is to analyze the eateries in your area. Say you own an Italian restaurant that serves pizza and pasta. If your part of town doesn’t have a dedicated pizzeria, that’s a golden opportunity – when you open a ghost kitchen with pizza theming, they’ll now have fresh pies in their delivery range.  

Create a Polished, Professional Brand Presence

The On Demand Company conducts in-depth research to figure out what customers are searching for in your area, and we don’t stop there. Our branding experts will then choose a name, design a logo, and create a menu for your new ghost kitchen. These “virtual brands” quickly gain traction on delivery apps. While those in your area may have biases about your food already, they’ll be eager to try the new pizzeria on the block.  

Climb to the Top of Popular Food Delivery Apps

We help that process along through state-of-the-art marketing methods. Our digital team members are experts in restaurant promotion. By breaking your menu into curated segments, we increase your customer base and your profitability. The On Demand Company takes care of adding your ghost kitchens to Door Dash, Uber Eats, Postmates, and other delivery platforms; all you need to worry about is the food. Through virtual brands, you can specialize in different cuisines, expand your business, try out innovative marketing methods, and experiment with new menus, all while protecting your brand integrity. Interested in cooking up your own ghost kitchen? We’re just a contact form away.  

Improve Restaurant Profit Margin With Ghost Kitchens

The word “Restaurant” comes from the French restaurer – translation: “that which restores.” Today, we can save struggling eateries through that same spirit of restoration and innovation. At The On Demand Company, we’ve found that starting a ghost kitchen is the secret to running a profitable restaurant in 2021. Contact us to learn how a virtual brand can revitalize your business.