What Is a Virtual Kitchen, And Why Are They Growing in Popularity?

What Is a Virtual Kitchen, And Why Are They Growing in Popularity?

Virtual kitchens operate privately without storefronts. Clients order their food remotely using their phone apps or via the website, and the package is delivered to their doorstep. Today, there has been an immense growth in the number of virtual kitchens, and in this post, we have discussed why this is happening.

Restaurants are Facing Tough Times

The reason why we see more companies use Occupyd to find spaces for virtual kitchen for rent is that restaurants are facing tough times. Due to the pandemic, at least 100,000 restaurants have gone out of business, and the number keeps increasing. During these tough times, instead of putting up the traditional kitchens, the virtual ones provide the answer.

Kitchens that only operate on a delivery model will adhere to the regulations and are less likely to confuse customers by switching their services. Note that ghost kitchens don’t have dining rooms and furnishings, so they are very affordable to start. The extra room also means that the kitchens have enough space to serve as many customers as possible.

Most cloud kitchens are designed in a way that they can provide multiple services, such as shared workspace for other restaurants. Therefore, this kind of arrangement reduces extra costs, such as rent. Since the kitchen can serve customers without additional expenses, they make a lot of profit.

Delivery Keeps Rising

The rising trend of the ghost kitchens as also provided a boost to the delivery industry. The fact is that even before the pandemic, the food industry was had already embraced the delivery approach. Today, many virtual kitchens have recorded massive success due to the delivery centred approach.

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It is reported that in the past few years, food delivery has increased by around 150%. According to expert, it is believed that by 2030, the food delivery market would be worth £365 billion, which is thrice higher than what we have today. By only focusing on takeout orders, ghost kitchens continue to make the most of this new trend.

In the past, it was hard for restaurants to adopt the delivery-only model due to lack of improved technology. But today, everything is available, and it is now easier to serve customers because they have also realized the perks that come with such kind of operation. Virtual kitchens are widespread in developed parts of the country where customers want to receive food without having to stop what they are doing.

They Meet the Digital World Demand

It is impossible to ignore the impact that the digital society has caused on the restaurant business. Almost every aspect of life has embraced the digital sphere, and unless your company can do that, it won’t last long. The virtual kitchens don’t have to dive too deep into the digital sphere, but it’s a combination that can make them thrive.

The delivery-only approach aims at making the most of the delivery services provided, and this included digital integration. Virtual kitchens can use digital ordering systems since it makes them receive and fill orders much faster.

Millennials grow up with the internet, and they form the largest population in the country. This means that for businesses to do well, they must make their services fast and reliable to meet the demands of the young population. Unfortunately, these are demands that traditional restaurants might not be able to meet. This is a fact that has paved the way for the rise of virtual kitchens, and they are doing really great.

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Virtual Kitchens Expand Restaurants

For new restaurants, ghost kitchens are the way to go since they are more profitable in this era of technology. They are easy to expand, and some larger establishments can use them in many ways to meet their dine-in-services. When it is time to expand, the virtual kitchens are easy to deal with because they involve minimal risk.

It has been found that at least 45% of businesses fail within the first five years of operation, and for competitive industries such as restaurants, the figure could be significantly high. Without a clear understanding of the market and proper positioning of the restaurant, the chances are that the business will fail in its first year.

To avoid such negative factors, restaurant owners can choose to open start virtual kitchens since they are very easy to start. The kitchens are easy to open, and you don’t need any special skills to manage them. Businesses that are expanding use virtual kitchens to test and see how customers would respond to certain products.

Final Thoughts

The restaurant industry is changing so fast. Customers have also embraced the art of using technology in almost all aspects of their lives. This makes virtual kitchens their favourite. The change has made traditional restaurants make losses because they don’t receive orders anymore. If you have been planning to join the restaurant industry and make profits, it is vital that you start a virtual kitchen. That way, you will be able to meet the demands of most of your clients.

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