Industry News FreshSheet  - trending news in the restaurant and hospitality industry

Industry News FreshSheet
trending news in the restaurant and hospitality industry

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"Ghost restaurants" could deliver a brighter future for restaurant industry

To combat rising operating costs, restaurants are launching "ghost restaurants" within their kitchens that prepare meals just for delivery.

Oct 22, 2019 - EightSix Staff

The recently announced closures of long-time South Granville restaurants West and Ouisi Bistro are telling examples of an unfortunate reality in Vancouver today: sky-high lease and property tax increases are pushing out otherwise healthy businesses and once vibrant neighbourhoods of shops and restaurants are going quiet. But, these challenging market conditions have given rise to the innovation of "ghost restaurants," virtual restaurants within brick and mortar kitchens built solely to satisfy food delivery by companies like Skip the Dishes, DoorDash, and Uber Eats.

Meal delivery apps allow customers to order dishes from kitchens within a particular distance of their home or office. By adding one or more "ghost" menus to their delivery options, local restaurants can greatly expand their food offerings for delivery, increasing revenue without having to open another establishment. 

A leader in virtual restaurants is Joseph Richard Group. With operating costs rising across the board, JRG has launched over ninety "ghost restaurants" within its many restaurants and public houses throughout the Lower Mainland, sometimes with up to seven different menus being produced out of a single kitchen.

As it becomes more difficult for many restaurants to remain competitive with costs skyrocketing, it looks like ghost restaurants could be the way of the future.

Read the full article: ‘Ghost restaurants’ reducing rent fright factor on Business In Vancouver.

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