Virtual restaurant lacking a storefront business model.
The term "ghost kitchen," "virtual restaurant," and "ghost restaurant" are only a few of the more common ones.
It is the lack of a storefront for the cloud kitchen business models and their dependence on a meal delivery ordering system that sets them apart from traditional eateries.
Companies utilize cloud kitchens for research and development, while others use them to test new concepts in the market.
Business and Operational Cost
Businesses in the food and beverage (F&B) industry are taking advantage of these kitchens to expand their reach across the island. Customers benefit from a shorter wait time as well.
As more people become accustomed to ordering food online, the opening of additional cloud or "ghost" restaurants has accelerated in Singapore.
Online meal delivery in Singapore is expected to account for over half of the country's whole fast-food and beverage (F&B) market in 2021.
There is room for ghost kitchens to coexist with eat-in establishments, even though ghost kitchens have "taken away the personality and the spirit of the dish to some measure."
I think the food speaks for itself... if your food is good, people will start talking about it.
Because of the increased variety, cloud kitchen operators have noticed an increase in the number of consumers ordering from many brands from the same website.
The Social Kitchen
The Social Kitchen, in contrast to other cloud kitchen operators, pays for the kitchen's space and staff. Food and training are the only things businesses have to offer for kitchen personnel.
Deliveroo's Mix and Match menu has seen a year-over-year increase of more than three times, according to a company spokesperson.
In Singapore, they have three locations, each with 24 cooking spaces, 18 restaurant partners, and 45 brands in operation. Virtual eateries account for about a third of all brands.
Chefs, delivery drivers, and wholesalers have been able to stay in business despite the devastation of the catering industry as a whole.
It's hard to go back to the old way of doing things. Ghost kitchens have a very promising future.
Learn more about the event on The Power of Market Research organised by Alumni of Adelaide University.
**Gain insights into Singapore Industry with a free F&B industry report valued at $495.
See you on 24 August 1630 hr. (Sign up below)
Free tickets code: adelaide0823
Sign up: Latest food and beverage analytics training
More info: Food and beverage industry market research
OCM (OnCoffeeMakers.com) was started in 2007 with the first webpage about coffee machines. And for a number of years, we focused on helping people find their desired coffee machine (we still are helping folks with that! So, if you are looking for coffee machines for office or restaurants - check out the link).
In 2010, we started getting enquiries on restaurant marketing and we start to help food and beverage brands with their marketing. Below are campaigns and events that we have done over the years:
OCM's campaigns: F&B Marketing Ideas by OCM
OCM's Events: F&B Industry events by or with OCM
Check out this restaurant marketing guide to learn more about the many campaigns and companies we have worked with.
Since then, we have also created many marketing workshops and classes for the F&B industry. Many of these modules are still running in tertiary institutions such as Temasek Polytechnic Skillsfuture Academy and also ITE College East COC classes, below are some snippets of our lectures and workshops:
OCM’s F&B workshops: Food and Beverage Marketing Lectures | Workshops - click to watch classes on customer journey map, JTBD and more.
So, if you are looking for industry practitioners to help you scale your coffee or F&B businesses, do drop us a message or book an appointment. Do also check out our various social media platforms on regular F&B and coffee market updates:
For regular coffee (F&B) related videos: OCM Youtube
For Daily Coffee Inspiration (fun coffee content): OCM IG
For insights into the coffee (F&B) industry: OCM LinkedIN
PS: For the coffee lovers, we continue to share coffee articles (and videos) and have also started a free coffee class section (with free online coffee training supported by coffee partners).