How do you know where your UberEats, DoorDash or Caviar orders REALLY come from?
The COVID Delivery Boom
The pandemic has pushed delivery applications to the lime light. The 4 largest food delivery platforms saw their revenues rise $3B collectively in the 2nd and 3rd quarters of 2020. Doordash, who currently operates about 50% of the market, saw 543 million total orders in the first 9 months of the year (compared to about 181 million orders in the same period last year).
Painfully Swallowing the Delivery-app Premium
When the lockdowns happened all over the world, restaurants had to find ways to make money without having "Dine-in" options. Well, they turn to delivery. Restaurant-owners, who dreaded giving away 15-30% of the revenue to the delivery-apps for every order, had to turn to the UberEats and Doordash's of the world.
How do you make money during a Pandemic?
If your only type of sale is delivery, and you're giving away a large part of your revenue to the delivery apps, how exactly do you make a profit? Well, you optimize your costs. Try to make everything cheaper for your operations and expansion. One of the largest costs for any restaurant is the rent! This is where a new industry can help rental costs relatively cheaper: Ghost Kitchens
Kitchens on The Cloud
A Cloud Kitchen or Ghost Kitchen is a large space that can house different types of companies that want to produce products specifically for "take-out". Picture a large warehouse with numerous stations of stainless steel prep tables, hood vents, stoves, ovens, and sinks, each with its own orders coming in direct from customers.
Benefits of a Cloud Kitchen vs Traditional Restaurant Model: