October 05, 2021

Ghost Kitchens: A Cost-Effective & Profitable Solution for Your F&B Business

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Sow the Seeds of Success for Your Food Franchise

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The COVID-19 pandemic has brought upon unprecedented times restaurants have never faced before. With the pandemic having wreaked havoc on the economy and forcing many people to stay at home, the restaurant industry has been brought to its knees, resulting in many eateries closing their doors. But this sparked a meteoric rise in food delivery orders in 2020, causing a monumental shift in how many restaurants operate and their primary focus. To keep up with the burgeoning demand for food orders, many have opened ghost kitchens as they provide a readily available solution that requires little investment. 

Given the seismic impact COVID-19 has had on the F&B sector, revenue in Hong Kong’s online food delivery industry is forecast to hit US$839 million this year. Furthermore, the number of users ordering food online is expected to reach 3.6 million by 2025. 

With the popularity of online food deliveries skyrocketing, many restaurants are flocking to make the most of the opportunity through the use of ghost kitchens to keep themselves in business while potentially attracting a whole new customer base. 

What Exactly is a Ghost Kitchen?

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Ghost kitchens go by many other alter egos, including cloud, dark and virtual kitchens. Essentially, they prioritise fulfilling food delivery orders over everything else. 

What has driven them to become so appealing is the fact that upfront and operational costs can be minimised significantly, meaning restaurants and food franchises can focus on cooking delicious food that wins them legions of returning customers. 

Freshlane offers state of the art ghost kitchens in Hong Kong that can have you up and running in no time. Furthermore, should food franchises open multiple ghost kitchens in the different locations where Freshlane has facilities, they could potentially tap into a whole new market that would not have been possible with a brick and mortar set-up. 

To maximise the potential of your business, this in-depth guide will delve into the importance of ghost kitchens and how you can use facilities like those provided by Freshlane to boost your F&B business. 

What makes Ghost Kitchens so Enticing?

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So many options currently exist for restaurants and food franchises looking for alternative ways to combat the economic strain caused by the global pandemic. The harsh reality is that a new dawn has set upon the F&B industry. Demand for food deliveries is constantly rising, and many eateries have pivoted to catering to the influx of orders coming their way. 

To aid businesses looking for a smooth transition to a more delivery-focused approach, Freshlane has a plethora of ghost kitchen facilities in some of Hong Kong’s most densely populated areas. Ghost kitchens provide the space and tools necessary to take your business to the next level, all while slashing costs significantly. 

With the front of house staff, rent for a dine-in location and furniture like tables and chairs no longer a concern, businesses can solely focus on the food they serve and send their profits soaring by providing delectable dishes to the masses. 

The 5 Major Benefits of Ghost Kitchens

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1. No more hefty costs  

Brick and mortar restaurants have huge costs associated with them, often HK$5 million and upwards. Opting for a ghost kitchen cuts costs massively and doesn’t result in eateries and food franchises being weighed down with a tremendous financial burden on their shoulders. 

Operational costs are also minimal as the need for waiters, bartenders, and much more no longer exists. With fewer employees needed when operating a ghost kitchen, the amount of money that goes towards paying salaries is a fraction of what it is compared to actual dine-in locations of a similar size.

Given all the money saved, businesses can focus on buying top-quality ingredients to produce mouth-watering food that sends their profits through the roof.

2. ROI in Months, Not Years

Ghost kitchens provide eateries and food franchises with the perfect launching pad to get their delivery-focused businesses off and running quickly. Once the equipment and chefs are brought in, the food can begin flowing out in just a few weeks rather than endure a painstakingly long wait that can last months when opening a brick and mortar establishment.

Having access to new markets and locations will result in an increase in profits, thus ensuring that your ROI will occur in a much shorter timespan. In just six months, many restaurants operating out of ghost kitchens have broken even on their investments. To illustrate how quick this is, brick and mortar eateries usually require 5 years to accomplish the same thing. 

3. Customers Galore

There is no denying that Hong Kong has experienced a surge in food delivery orders since the pandemic began. In fact, the user penetration rate for online food delivery will hit 40.5% this year

Many restaurants and food franchises are switching to a delivery-online business model and using ghost kitchens to achieve this. It enables them to make full use of a small space and pump out top-notch cuisine that can be in the hands of a delivery courier minutes after being prepared. 

What makes Freshlane’s ghost kitchens the premier choice is the fact that our facilities are located in areas with an established customer base that is consistently placing orders. With all the pieces before you, there is an incredible opportunity to get it right and watch the money roll in.

4. From Baby Steps to Giant Leaps

There is plenty of growth potential associated with ghost kitchens as eateries and food franchises can expand to different locations once they have hit it big in one particular area. 

Once this occurs, a whole new market can be targeted and won over with tantalising food that leaves them wanting more. Bringing in more customers across a range of locales will significantly boost revenue and help your business thrive. 

5. Plenty of Partners to Choose From

Upon setting up in a ghost kitchen, including the ones provided by Freshlane, there will be a pressing need to establish partnerships with a host of food delivery companies. Luckily, there is no shortage of choices in Hong Kong as Foodpanda, Deliveroo and Uber Eats are among the top power players in the market. 

With many orders expected, restaurants and food franchises will naturally be concerned about how to track everything. Have no fear, as Freshlane will ensure you can keep on top of all orders through one tablet. All you have to do is focus on creating enticing culinary delights that will have people flocking to order from your eatery. 

In addition to streamlining your system for tracking online orders, Freshlane will provide further peace of mind by handling all aspects of maintenance and security. 

Ready to open your ghost kitchen?

A new era is dawning, and Freshlane is committed to helping businesses survive and thrive through our top-of-the-line ghost kitchens. Allow us to lend you a helping hand and take a leap of faith into an industry that is becoming increasingly delivery dominant. 

If you are ready to take the plunge, simply fill-up the form below and let us enlighten you about the world of ghost kitchens!


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