Choosing The Perfect Caterer

Pros And Cons Of Opening A Delivery-Only Restaurant

12 April 2022 by Cathy Fields

The word "restaurant" usually conjures up images of people sitting and dining in a public place. Or, alternatively, you might think of a fast-casual place where customers order at the counter. Indeed, these are the two more common restaurant formats. But they are no longer the only restaurant formats. Delivery-only restaurants, also known as ghost kitchens, are becoming more popular. These restaurants do not have any sit-down space. In fact, they do not even allow customers to visit. Instead, customers order online and all of the food is delivered. Is opening an online delivery-only restaurant right for you? Here are some pros and cons to consider.

Pro: You can keep costs lower.

Operating costs are a lot lower with ghost kitchens. You only have to pay to rent the kitchen because you don't have to rent a full restaurant with a dining area. Some delivery-only restaurants even share a kitchen space with another restaurant; they both operate part-time and split the rent. You also do not have to pay front-end staff, and you don't have to pay cleaners to clean the dining area. The savings just go on and on. This is a very low-expense way to open a restaurant.

Con: It can be a bit boring for employees.

There are some cooks and chefs who will welcome a change and enjoy working in a ghost kitchen. But to a lot of seasoned kitchen staff, working in a ghost kitchen isn't as interesting because everything gets packed into to-go containers and delivered to customers they never see or know anything about. So, finding employees excited to work in a ghost kitchen can be a little hard.

Pro: There's a lot of demand.

People are ordering online food delivery more and more. They are enjoying takeout rather than going out to the restaurants. As such, there is definitely a good market for this business model. If your dishes are unique and good-quality, you should have no problem making sales.

Con: Delivery errors are a pain to deal with.

If there is an error in an order, correcting it often means sending out another delivery driver. As such, it will be very important to avoid errors with this type of kitchen setup. You'll also need to have a system in place for correcting orders.

Consider the pros and cons above to decide whether opening a ghost kitchen is right for you. 

For more information, check out various online food delivery services, such as Stay'd.

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