The Future of Ghost Kitchens in the Food Business

The popularity of ghost kitchens has surged in recent years, but do they still hold the same allure? And will this trend, born out of the pandemic, continue to grow? 

Early predictions from some commercial realtors suggested that by 2025, ghost kitchens would comprise up to 20% of the restaurant industry. However, as in-person dining has resumed, the rapid pace of ghost kitchen openings appears to have slowed, casting doubt on those initial forecasts.

Major Challenges for Ghost Kitchens

As restaurants have encountered the drawbacks of ghost kitchens—low volume units, operational difficulties, and permit challenges—many companies considering this venture have altered their plans, and several have closed their previously opened locations.

The primary issue is that ghost kitchens struggle to generate the sales volume required to make them viable and profitable investments, even when accounting for savings on labor and real estate.

Another challenge this model faces is the lack of guest loyalty and engagement, something many restaurants depend on for revenue. Studies indicate that guest satisfaction is higher with dine-in restaurants compared to ghost kitchens. Specifically, 20 percent of guests report higher satisfaction with better order accuracy, 23 percent are more satisfied with order quality, and 16 percent perceive more value when dining in a restaurant.

Future of Food Business

Though ghost kitchens have seen a decline in momentum, there is still hope for their success—provided operators are willing to adapt. Transitioning to an omnichannel model can help these kitchens maintain relevance and profitability. Additionally, with many businesses reopening, there's an opportunity for ghost kitchens to tap into the corporate catering market and boost daytime business.

In food business, sales, services and other areas, there is an increasing need to optimize efforts, omnichannel communications and cost optimization. Sometimes you can order goods directly from the manufacturer if you unblock the website. If your VeePN is unblocked, then you can access any website in the world, even if it has active regional restrictions. This way you can both expand your audience and find contractors, order raw materials or products cheaper.

Online orders are a convenient tool for ghost kitchens consumers. To ensure ease of use, a business must implement an online menu, contactless payment, and integrate with delivery applications. The introduction of such functions will give an advantage over traditional restaurants. It also increases customer satisfaction and more of them will return.