Ghost restaurants, also known as delivery-only or virtual eateries, are increasing in number. In Gauteng and the Western Cape, South Africa, the number of ghost restaurants has increased significantly. Seen that one can not walk in and order from a menu. Ghost restaurants work differently from standard restaurants and quick service restaurants and take orders with restaurant online ordering apps. Customers would order via the restaurant online ordering app, and receive orders via driver deliveries.
About 26% of independent restaurants fail during their first year. The high upfront cost is required when setting up a traditional restaurant or take away. The operating cost is also high with big floor space required. The traditional restaurant business model combines high upfront investments, large overhead costs, and competition, which makes it hard for businesses to survive or grow.
Ghost restaurants are easy to scale. They usually do not require high investments or overhead costs, and they are easier to test. There is also another important benefit of opening a ghost restaurant. In new markets where delivery demand multiplies rapidly, current restaurants sometimes cannot grow to meet the demand. Ghost restaurants create new supply locations for the industry.
“In high labor cost markets, ghost restaurants can bring down the price of handmade meals, and at the end of the day, convenience will always win. Cooking on a daily basis is a mandatory chore that many people hate. By enhancing the whole value chain of food, we can provide better choices for healthy eating every day. Eventually, ghost restaurants will start to replace home kitchens,” Martti Paatela of Epic Foods, a Nordic food delivery company, and ghost restaurant, explained.
With Restaurant Food Online Ordering platforms like Ubereats and Restajet, ghost restaurants can reach out to their customer base. Driver delivery would ensure the delivery of the food orders. Delivering the right order with the correct items ordered in the correct way of preparation.