The dining landscape in the United States has witnessed a remarkable shift, with consumers spending over $800 billion annually on restaurants, and a substantial $27 billion directed towards food delivery platforms, apps, and websites in 2018. This significant increase in food delivery business spending can be attributed to the global pandemic, which prompted a surge in at-home dining. However, the proliferation of delivery-only restaurants throughout the country has also played a pivotal role in driving the surge in food delivery orders. In this blog post, we will delve into the concept of delivery only restaurants, their impact on the evolving dining industry, and the factors fueling their rapid growth.
What is a Delivery Only Restaurant?
A delivery only restaurant, also known as a ghost kitchen, cloud kitchen, or virtual kitchen, is an establishment that operates solely to prepare and deliver food to customers. Unlike traditional restaurants, delivery only restaurants do not have a physical dining space for customers to sit and eat. Instead, they focus entirely on fulfilling orders placed through online platforms, such as food delivery apps or their websites. These establishments often operate from centralized kitchens or remote locations, allowing them to streamline operations and reduce overhead costs. Delivery only restaurants cater to the growing demand for convenience and on-demand food delivery services in today's fast-paced society.
What’s the Difference between a Delivery Only Restaurant and a Meal Delivery Service?
A delivery only restaurant operates much like a traditional restaurant, excluding the face-to-face service, whereas a meal delivery service functions with slight distinctions.
These services, gaining popularity in urban settings, provide consumers with complete meals.
The primary distinction lies in the ordering process: a meal delivery service typically necessitates placing orders days or weeks in advance, whereas a delivery only restaurant allows for spontaneous orders with immediate delivery.
What is Causing the Delivery Only Restaurant Trend?
As mentioned before, the recent rise in delivery orders is almost certainly linked to the global pandemic and the resulting lockdowns. Many restaurants, especially traditional ones, have resorted to delivery services to survive. Even if they were unable to open their physical locations to welcome customers, delivery and takeaway options allowed them to keep serving their clientele.
However, before the pandemic, we observed a consistent increase in food delivery orders, which contributed to the expansion of delivery only restaurants. The surge in food delivery orders is often attributed to a growing desire for convenient solutions, especially as Millennials have become a significant driving force in the economy.
Due to the growing influence of technology, many consumers now expect to be able to access almost anything they desire, whenever they desire it. Food delivery services help meet this demand.
What Are The Benefits Of Delivery Only Restaurants?
There are numerous advantages to adopting a delivery only restaurant business model. Below, we outline the top five benefits of operating a restaurant that focuses exclusively on delivery services:
Flexibility: Delivery only kitchens offer unparalleled flexibility in their operations. With no need for a physical dining space, they can adapt quickly to changing trends and customer demands, experimenting with new menu items or adjusting operating hours with ease.
Lower Cost: By eliminating expenses associated with maintaining a dine-in establishment, such as rent, utilities, and front-of-house staff, delivery only restaurants enjoy significantly lower overhead costs, maximizing profitability.
Potential for Increased Profits: With lower operating costs and the ability to reach a wider customer base through delivery services, delivery-only restaurants have the potential to generate higher profit margins compared to traditional restaurants.
Creativity: Without the constraints of physical dining space, delivery-only restaurants have the freedom to explore innovative culinary concepts and experiment with unique menu offerings, appealing to a diverse range of tastes and preferences.
Dependability in Large Cities: In densely populated urban areas where space is limited and rent prices are high, delivery only business provide a dependable solution for satisfying the culinary cravings of city dwellers without the need for costly brick-and-mortar establishments.
How To Start A Delivery Only Restaurant
When it comes to setting up the restaurant, the process is surprisingly simple. For additional insights on this topic, you can refer to our guides on creating delivery only kitchens and designing ghost kitchens.
How to Plan & What You Need
The process of opening a delivery only business is quite simple. If you're wondering how to get started, here are the six key things you'll need:
Kitchen Space
The specific requirements for this will depend on your location and what's available, but commissary kitchens are a common choice.
Menu
Of course, you'll need a menu for customers to browse, as without it, no one will be ordering from you. Transgenie offers a seamless and painless menu design solution.
Cooks
It's quite obvious that you'll need cooks to prepare the food. Therefore, hiring a team of cooks is essential.
Technology
This is where Transgenie comes in. In addition to needing a POS system for taking orders, a ticket machine for printing receipts, and at least one third-party delivery service, Transgenie simplifies the process of consolidating these elements into one platform.
Equipment
To prepare food, you'll need the necessary tools. High-quality commissary kitchens typically provide all the required equipment (and sometimes even some produce), but it's always wise to have backups on hand. This also includes items like napkins, silverware, and packaging for to-go food and drinks.
Performance Tracking
While it may be the least exciting part of the process, it's crucial to be able to monitor your restaurant and website's performance. Once again, Transgenie makes this process incredibly simple and presents the most important KPIs and statistics for the restaurant in one easy-to-use interface.
Once you have secured the necessary equipment, staff, and location, managing the technology and tracking statistics becomes relatively straightforward. It's always best to start from the first point and work your way down the list to avoid any surprises.
Final Words
Delivery only restaurants are revolutionizing the culinary landscape by offering a convenient and innovative dining experience for consumers and restaurant owners alike. As technology continues to advance and consumer preferences evolve, we can expect to see even greater growth and innovation in the food delivery industry. Whether it's ordering gourmet burgers, sushi, or vegan fare, the possibilities are endless in this brave new world of delivery-only dining. So next time you're craving your favourite meal, why not skip the dine-in experience and opt for delivery instead? With delivery-only restaurants, the future of dining is just a few taps away.
Yokesh Sankar