It’s become ubiquitous during the crisis; getting delivered anything you want to eat in under ten minutes. Sign of the times or a profound change in consumer behaviour, ghost (or cloud) kitchens are sprouting everywhere, and more disturbingly, globally.
There are three types of restaurants; the traditional privately owned (your neighbourhood favourite), ghost kitchen (where anyone with a kitchen can put together a brand & offer to generate incremental revenue), and the warehouse (premises where multiple types of food are prepared for home delivery or collection without a dining area or waiters).
The business model is straightforward (and proven to be momentarily viable); customer service and dining costs are removed, enabling a direct relationship with consumers. Why momentarily? Because delivery has been vastly subsidised by venture capital, that has enabled an unprecedented level of commodity that is currently proving to be difficult for consumers to resist.
Is this really the future? Although “invented” by UBER, delivery firm Deliveroo is attempting to take it to the next level. The company said it would spend a large part of its latest funding of $180 million on investing in ghost kitchens thus enabling them to significantly increase their profit margins as they will no longer be dependent on delivery commissions from restaurants.
Yet, is this what food has become? Many believe it has evolved to be just a form of “wrapped nourishment”, and the only thing that’s going to be left is the brand, and the affinity that the consumer has for the brand.
But ironically, when the funding dries up, and it will, and part of the value proposition with it (oh is that what we’re really paying for), traditional restaurants that are conveniently situated, offer an unrivalled atmosphere, and propose high quality vetted “meals” will be reborn.
I support my local eateries because restaurants are more than just eating. They provide a sort of restorative escape, giving us an unparalleled sense of kinship and community, which is so important today.
There are three types of restaurants; the traditional privately owned (your neighbourhood favourite), ghost kitchen (where anyone with a kitchen can put together a brand & offer to generate incremental revenue), and the warehouse (premises where multiple types of food are prepared for home delivery or collection without a dining area or waiters).
The business model is straightforward (and proven to be momentarily viable); customer service and dining costs are removed, enabling a direct relationship with consumers. Why momentarily? Because delivery has been vastly subsidised by venture capital, that has enabled an unprecedented level of commodity that is currently proving to be difficult for consumers to resist.
Is this really the future? Although “invented” by UBER, delivery firm Deliveroo is attempting to take it to the next level. The company said it would spend a large part of its latest funding of $180 million on investing in ghost kitchens thus enabling them to significantly increase their profit margins as they will no longer be dependent on delivery commissions from restaurants.
Yet, is this what food has become? Many believe it has evolved to be just a form of “wrapped nourishment”, and the only thing that’s going to be left is the brand, and the affinity that the consumer has for the brand.
But ironically, when the funding dries up, and it will, and part of the value proposition with it (oh is that what we’re really paying for), traditional restaurants that are conveniently situated, offer an unrivalled atmosphere, and propose high quality vetted “meals” will be reborn.
I support my local eateries because restaurants are more than just eating. They provide a sort of restorative escape, giving us an unparalleled sense of kinship and community, which is so important today.