Ghost Kitchens And Their Impact On The Restaurant Industry

By Author: Trident Information Systems
Total Articles: 96
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Popular folklore in India believed that food comes from heaven. These days, those tales have become reality since now food comes from the ‘cloud.’ The concept of ghost kitchens or cloud kitchens is as monumental as the discovery of fire. To support this trend, many business owners are implementing Cloud Kitchen Software. Cloud Kitchen Management Solution is necessary if a business wants to surpass the competition.

We have seen a drastic change in our food consumption since the industry has flourished. We have shifted our preferences from wholesome home-cooked meals to dine-outs occasionally and now experiencing the fusion of restaurant delicacies in the comfort of our homes.

According to Datalabs by Inc42: the food ordering market in India is expanding at a CAGR of 16% and will touch $17 billion by 2023. The projected market size of cloud kitchen would reach $1.05 billion by 2023.

Many restaurant owners, instead of integrating with the third-party application, decide to expand their business with cloud kitchen. It might consist of nothing more than an area in their existing premises dedicated to ...
... fulfilling off-premises orders. Since its less capital demanding nature, restaurants with low budgets may choose to extend their chains. In this case they can use a unified Cloud Kitchen Software.

Cloud Kitchen and its Potential
The cloud-kitchen-craze exceeded demands during the COVID-19 pandemic, where customers could not go out and eat. Various restaurant businesses survived only because of cloud kitchens. That period allowed this revolution and made ghost kitchens flourish.

Those restaurants who opted for a Cloud Kitchen Management Solution like LS Retail could handle things better as compared to those without these solutions.

As compared to the restaurants, cloud kitchens are at the least risk of facing losses with minimum investments, exceeding demands, and infinite growth scope. Cloud kitchen is most likely to see a hike in business.

Cloud kitchens are also considered profit-making machines, with low operational costs and minimum investments. They do not have to bear the opening costs. One thing that matters the most is the food quality.

As the demand for delivered items continues to grow, the bright future of this trend is assured. Moreover, it could be an ideal solution for the established restaurants, as they would allow them to keep up with their dine-in while accommodating new delivery services. This ultimately frees the lobby from couriers, assisting the indoor dining experience. Extensively, it would simply operate while running a hybrid model with both take-out and eat-in at the same time.

Ghost kitchens can be a great head start for newcomers as they require low capital investments. As soon as it becomes more common among restaurants, we can count on Advanced Restaurant Automation to draw more benefits. According to Euro motors, we can expect the ghost kitchens to automate their productions completely in the next five to ten years, including their menus and services to cut production costs.

How to Get the Most Out of Ghost Kitchens
As per Uber eats, its restaurant partners having a ghost kitchen can increase sales by 50%. Deliveroo is so certain of its growth that they are thinking of launching its own internationally. However, the question arises, how to get into action and get great returns on investments.

Use Data and Strategize
Research on demand and conduct gap mapping. In case you already run a Food and Beverages business, you may look through your customer’s data and find out what drives them to your business. Check if the market conditions are favorable and how you can modify your menu. You may also pick locations driving the maximum customer traffic (and close to you)

Calculate the average meal preparation time and throughput to determine if you need more than one kitchen. You may also find ways to shorten up lengthy delivery.

Keep up with the Dine-in Level Quality
Make sure every dish you serve through your cloud kitchen must be as good as a dine-in meal. Make sure you deliver food items the way it does not spoil the food and make it soggy. To maintain the quality, you may as well have to hire staff from the restaurant who know your food and prepare it the way it should be.

Get the Relevant IT Infrastructure
This is one of the most important parts. You need to get the right IT infrastructure for your restaurant which can track the order and its source while transferring the details straight to the kitchen. This way the chef can avoid confusion and be certain about the orders: which one is to be prepared and for whom. If the customer has mentioned some add-ons, they may take care of that too.

Get a Data Analytics Platform
Having a data analytics platform is fundamental for you since it can help your business reduce waste, reorder ingredients appropriately and maximize revenue. In the long run, your business can get a hold of concrete data driving crucial decisions that identify your business’s return on investments.

Thrive cloud kitchen with a Cloud Kitchen Management Solution like LS Retail. Integrate every essential under the same platform. Receive orders and analyze customer behavior. Customize menus and deliver quality meals fast. If you are looking for an LS Retail implementation Partner, contact us.

Trident is a global consulting firm that empowers organizations around the world to digitally transform and grow their businesses. Our expert consultants offer strategic consulting, implementation services, support and managed services and pre-built software solutions that help our clients innovate and reinvigorate customer, employee, partner and supplier experiences and processes using Microsoft Dynamics 365, ERP, CRM, Business Intelligence/Analytics and related Microsoft cloud solutions.