Entering the food service industry requires skill, time, a considerable investment, and risk (depending on its scale). Restaurant startup cost goes for at least $275,000, and about 26% of restaurants fail in the first year of operations. However, there are cheaper alternatives such as catering, food truck and trailers, stalls/kiosks. But let’s explore something a bit less conventional: “delivery-only kitchens”.
Delivery-Only Kitchens is arguably the cheapest and safest option in venturing into the food service industry. You only need a kitchen, food delivery containers, a means for your customer to contact you (either through an app, your website, social media page, etc.), and a delivery medium (which could either be through a food delivery app/service or your delivery vehicle). So here are the basics of a delivery-only kitchen:
Delivery-Only Kitchens are also known as ghost restaurants or virtual eateries. There’s no physical establishment for the customer to go to, no sit-down space, and no waiters/servers. The customer will have to make an order online or call the kitchen, and the food would be delivered (and paid for) at your doorstep. Unlike all other alternatives (restaurants, food truck/trailer, stall/kiosks), the customer would have no way of actually interacting with the food service unit; this removes any need for a delivery-only kitchen to have a physical establishment apart from a kitchen, which subsequently means lower startup cost.
Cheaper Cost, Lower Prices, Higher Income
Having no rent or maintenance cost, lesser staff (kitchen staff only) makes it possible to have a low-maintenance food business that can offer high-quality products at lower prices. Restaurant (or other food business types) owners always take into account their overhead costs when pricing their food, as such. Having minimal overhead cost would mean that a delivery-only kitchen can be more flexible with their pricing and can potentially have higher net income with each food served.
Mode of Delivery
The existence of food delivery apps, services, and websites (as well as social media pages), have made it possible for Delivery-Only Kitchens to thrive. A delivery-only kitchen can opt to have its website which allows the customer to see their menu and process their delivery order and its delivery vehicle. However, most delivery-only kitchens tie up with food delivery apps and services since it is more convenient and requires less effort, technical know-how, and eliminates the need to have your vehicle. Some have even foreseen the use of drones in the future for deliveries (not only for delivery-only kitchens but other food service industries offering delivery).
Brand Building and Expansion Possibilities
Delivery-only kitchens could serve as a training ground, as well as a medium to build (or rebuild) brand. If a delivery-only kitchen can regularly “deliver” quality food or acquire its niche, there’d be a more satisfied customer, which means more and better online reviews, which then leads to more potential customers, and the brand grows and becomes more well-known. The owner could then decide to either expand to having a stall, a food truck or eventually even a restaurant.
So, if you’re thinking about entering the food service industry with low risk, and minimal investment and huge grown potential why not go for a delivery-only kitchen?