How You Can Make Money From Virtual Restaurants. #askshaf

If you missed last week's announcement about our #cloudkitchens business model; which we are rolling out in Edinburgh. Watch the video below. or click here to view

Virtually everyone will enjoy eating food that was originally prepared in a virtual kitchen soon, according to the experts. But why and how could entrepreneurs get involved in this new concept and is it really as easy as pie to make money from it? This week’s Ask Shaf is going to have a look…

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Let’s have a quick reminder about virtual kitchens. They are ready-to-use commercial kitchens available for rent. They are used by companies who prepare food for delivery, straight to your home, whenever you want it. You order your food on an app, and it’s made in one of these kitchens – possibly without you even knowing – and then it’s delivered by a company like Deliveroo. This is going to be massive. Morgan Stanley predicts that by 2022, digital food delivery will account for 11 percent of the total market, compared to six percent last year. That’s an incredible increase in just a few short years.

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So why would food start-ups want to get involved in smart kitchens? There are loads of good reasons. These kitchens are generally built in pretty unpopular, non-descript areas meaning renting them will be cheaper. In the past, opening a restaurant meant either buying a property with hot food consent or signing a long-term lease, resulting in less flexibility for the business. A fortune would have to be spent on new signage and making the frontage inviting.

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Another bonus is the kitchens are fully equipped, saving a start-up money on buying the essentials needed for food prep. Staff costs are cheaper too. Waiters and waitresses aren’t required as there is no table service. The opportunity to scale up is much more manageable. A start-up could kick off with just a few super-tasty meals and add more if the demand is there. There could be more scope for delivering to a niche market too. Could all dishes be vegan? Would all dishes being gluten-free be a possibility or a USP?

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There is one group that could benefit from virtual kitchens that we haven’t talked about yet and that’s a traditional restaurant. Why would they want to embrace this new idea? Simple. It would make them more money, improve their customers’ experience and help their working practices.

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If a traditional restaurant currently delivers food, the chances are it interferes with table service. Imagine if takeaway and sit-in meals could be separated. The restaurant could concentrate on what it does best – giving a really nice meal and a night out to sit-in customers. Chefs wouldn’t be distracted with takeaway orders constantly coming in and would be fully focused on the dining experience. A virtual kitchen would be set up exactly how it needs to be for home delivery food. This model would be perfect for traditional restaurants that don’t already deliver. They could launch from a smart kitchen without causing upheaval in their restaurant. Again, there would be no need to launch a full menu, simply offer the most popular dishes. Plus, loyal customers will already trust their brand and be willing to support their new venture.

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Smart kitchens are offering tasty opportunities for people who would never have previously considered going into food businesses. Let me know what you think and don’t forget to subscribe to my YouTube channel – it’s a piece of cake and it won’t cost you anything! Just hit the subscribe button now