How to Start a Ghost Kitchen in 13 Steps

Getting a kitchen for your ghost is much easier than you may think, and these basic instructions will help to ensure that it’s done properly the first time. To start, find an empty space near the ground level (if possible) on any side of your home. This can be in the basement or at one end of a room with windows open–preferably not directly facing another window since ghosts do like light. Next remove everything from this area so there are no obstructions between furniture: move electrical cords as needed and take down curtains if they’re going to get in the way of what you want to build.. Then set up two walls-one against each exterior wall-and put enough distance between them so they don’t touch when they meet in order to allow access around both sides. Finally add insulation over where you’ll be working (be sure not to leave holes) and paint it white before securing wood planks along its length.,

The “ghost kitchen business plan pdf” is a document that has been created to help people start their own ghost kitchen. The document has instructions on how to create a business plan and set up the location.

A ghost kitchen is a delivery-only restaurant that sells its products via third-party delivery platforms or other online ordering websites. It doesn’t have any dining rooms; instead, it’s a “virtual brand” that only exists online. Starting a ghost kitchen is a low-cost method to start a restaurant brand, and our guide walks you through the process in 13 phases, from coming up with an idea and branding your company to developing an ordering system, locating suppliers, and launching your brand.

The notion of a ghost kitchen has been evolving since the early 2010s, but customer demand for meal delivery in 2020 resulted in a surge in ghost kitchens. You may operate a ghost kitchen independently from a standalone commercial kitchen and a shared commercial kitchen, or rent space from an established restaurant. Starting a ghost kitchen is often less expensive than operating a standard restaurant or launching a food truck.

How-to-Start-a-Ghost-Kitchen-in-13-Steps

In 13 easy steps, you may build a ghost kitchen:

1. Develop a concept

Choosing a concept is the first step in getting your ghost kitchen off the ground. Your menu and brand name are basically your ghost kitchen idea. Unlike typical brick-and-mortar restaurants, the names and menus of ghost kitchens must be tailored for internet searches.

Consider this scenario: hungry clients look for a certain cuisine on internet ordering services. If they like the meal, they’ll look for your restaurant if the name is distinctive and reminds them of a dish they like. With a name like Wing King, rather than Third Street Bistro, a chicken wing idea is more likely to draw repeat orders.

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There are a few phases to putting together your ghost kitchen design.

  1. Consider who your most probable consumer is in your neighborhood while researching your customer. It may be students if you live in a college town. Families with children may make more sense if you live in the suburbs. Consider if your consumers are likely to order breakfast, lunch, or supper.
  2. Take travel into account: all food from ghost kitchens is delivered to the consumer. Consider how far your meal will have to go and how long it will take to get there. In a congested metropolis, for example, it may take twice as long for your meal to travel modest distances during dinner rush. So consider meals that can withstand transportation. For this reason, pizza and wings are popular choices. Curry, empanadas, and chicken sandwiches are all good options.
  3. Make a meal plan: Make a selection of recipes that will travel well and appeal to your target audience. You don’t have to bother about developing a menu layout if you use third-party ordering and delivery systems; they all offer standard layouts. If you’re going to use your own online ordering website, on the other hand, you’ll have to build a menu layout afterwards.
  4. Give your ghost kitchen a name: The name of your ghost kitchen should be memorable, simple to read on a page of search results, and include the sort of cuisine on your menu. Check out our restaurant name generator to get your creative ideas flowing.

2. Form a Corporation and open a bank account for your company.

After you’ve decided on an idea and a name, you’ll need to take care of some business matters. You may skip this step and go straight to step 3 if you’re adding a ghost kitchen as an extra income source to an existing restaurant. However, if you’re starting a new ghost kitchen, you’ll need to incorporate in order to have your company licensed and insured.

  • Getting your Company Incorporated
  • Establishing a Business Bank Account

There are various sorts of company structures, but the following are the most common:

  • One-person business
  • Partnership
  • Limited Liability Corporation (LLC) (LLC)
  • a limited liability company (LLC)
  • Corporation

An LLC is the ideal option for most ghost restaurants since it protects your personal assets in the case of a lawsuit or bankruptcy. Designating your LLC as a S corp may be a smart option if you expect to pay yourself more than $20,000 per year from your ghost kitchen. Check out our guide on picking a business structure for more information on alternative company formats.

On your state’s official business registration website, you’ll find all the paperwork you’ll need to register your LLC. Depending on where you are situated, the charges vary from $50 to $500. You may also utilize legal services like LegalZoom and Rocket Lawyer to walk you through the procedure if you find your state’s website unclear or difficult to browse.

3. Create a brand for your company

It’s time to be creative now that you’ve gotten some of the boring business stuff out of the way. Your ghost kitchen requires a memorable logo that will stand out in search results and look great on bags, stickers, and to-go containers. You don’t have to be a creative genius; services like Fiverr and Upwork make it simple to employ freelance designers.

How-to-Start-a-Ghost-Kitchen-in-13-Steps

A simple search on Fiverr for “ghost kitchen logo” turns up portfolios from a number of interesting designers.

You may find freelancers in almost any pricing range, but a logo design should cost somewhere between $50 and $400. Getting a whole brand kit for ghost kitchens is also a wonderful option. A brand kit usually includes many versions of your logo, each tailored for usage on different social media platforms, printed media, and websites. In addition to stickers for sealing to-go bags, business cards, and menu drawings for use in social media marketing, a brand kit for a ghost kitchen may comprise. Brand kits are expensive, but depending on the designer’s skill level, you may get them for roughly $350 to $800.

4. Locate a Site

Ghost kitchens may be located in self-contained, delivery-only kitchens, common commercial cooking areas, or sub-leased restaurant kitchens. The most costly kitchens are freestanding, delivery-only kitchens. You’ll need to purchase all of your equipment and get all necessary licenses, as well as maybe obtain construction permits.

In recent years, shared commercial cooking rooms have become more common. Ghost operators may now find space in co-working kitchens constructed specifically for ghost operations like CloudKitchens, Reef, and Kitchen United, thanks to the COVID-19 epidemic, which prompted a surge in commercial kitchen building. Check out sites like the Kitchen Door and Commercial Kitchen for Rent to locate basic commercial kitchen spaces in your region.

Assume that the number of commercial kitchens in your neighborhood is increasing. In that scenario, contact restaurants that operate during restricted hours (breakfast only, supper only, etc.) and see whether they would be interested in subletting their kitchen to you during the off-hours.

5. Obtain all necessary permits, licenses, and insurance.

Your ghost kitchen, like any restaurant, will need a number of permissions and licenses from your local fire, health, and tax authorities. Some permissions are linked to the structure and need site inspections. You’ll need them if you’re going to run your ghost kitchen from a new, self-contained location.

If you’re subleasing from an established restaurant or leasing space in a shared commercial kitchen, you’ll want to double-check that the kitchen has all of the necessary permissions before paying rent and security deposits. If you’re adding a ghost idea to an established restaurant, on the other hand, your current permits should cover your ghost business.

  • Ghost Kitchens Typically Require the Following Licenses
  • Purchasing insurance for your Ghost Kitchen
  • Business license: This is a state or county-issued permit that allows your company to operate in your area. Prices differ from one state to the next.
  • Employer identification number (EIN): This is a number issued by the Internal Revenue Service (IRS) and used to submit federal business taxes. There is no cost to acquire an EIN, and instructions and applications are available on the IRS website.
  • Your state’s counterpart of an EIN is your state tax ID. This number may be obtained through your state government, or you can utilize the Small Business Administration’s directory to find the relevant website for your state.
  • This license enables your company to buy wholesale items without paying sales tax.
  • Food Manager’s Certification: Most states need a food service manager’s certificate for any firm that serves food to the public. Even if you rent space from a commercial kitchen, you’ll need this. You must complete an in-person or online course and pass an exam to get the certification. The training and exam are both offered by ServSafe, and the total cost of the course and test is $179.
  • A food handler’s certificate is required in several states for every employee who works with food. This document, like the Manager’s Certificate, requires the worker to attend a class (typically two hours) and pass an exam. Your employees may take the course and test via ServSafe online or in person for $15 to $18.

Location-specific licensing may be necessary. If you’re planning to create a new standalone ghost kitchen and aren’t sure which permits you’ll need in your location, use an internet legal firm for assistance. For instance, Incfile provides a research package that identifies the required licenses for your company type in your area and contains all of the paperwork you’ll need to file, as well as instructions. The Business License Research Package from Incfile costs $99.

Ghost kitchens, like other small companies, need insurance to protect them in the event of an accident, food-borne disease, or employee harm. Let’s say you rent a ghost kitchen from a shared commercial kitchen or a sublease from an established restaurant. In such situation, you’ll almost certainly be requested to provide evidence of liability insurance (as well as workers’ compensation if you have employees).

Most ghost kitchens need at the very least:

  • General Liability insurance covers you in the event that a third-party motorist is injured on your property, as well as property damage and claims made by non-employees. Existing restaurants are likely to have a standard business liability coverage, but they should check with their provider to see whether installing a ghost kitchen is covered.
  • Workers’ Compensation: If you have workers, you must carry worker’s compensation insurance to pay medical costs and missed earnings if they are injured at work.
  • Commercial Auto or Hired Not Owned Coverage: If your delivery drivers drive company-owned cars, you will require a commercial auto policy. If your employees drive their own cars, you’ll need a “hired not owned” coverage to protect your company if they get into an accident while on the job.

6. Fundraise (If Needed)

Ghost kitchens are normally inexpensive, although they may cost up to $30,000. If you can’t afford it, you’ll have to raise money. Crowdfunding is an excellent alternative, as is soliciting donations or loans from friends and family. If you want to apply for a small business loan from a bank, you need prepare a business plan to support your loan application. In our tutorial How to Write a Restaurant Business Plan, you’ll discover extensive instructions and a template.

Because most ghost kitchens are placed inside existing commercial cooking facilities, opening a ghost idea without constructing or modifying a kitchen area is totally doable. Many ghost kitchens, on the other hand, may find that they want more storage, particularly if the company is busy. If your chicken wing idea takes off, for example, you may need to buy more freezers or reach-in coolers to have adequate stock for weekend demands. You may need to provide your own equipment if you work in a shared commercial kitchen like CloudKitchens.

7. Take Pictures of Delectable Food

For ghost kitchens, mouthwatering food photographs are an important must. To attract new customers, your meal must stand out from the competition on the same ordering platform. It’s a good idea to enlist the help of a professional food photographer. Depending on your market and the photographer’s notoriety, prices might vary from $500 to $50,000. You don’t need a picture of every item on your menu to begin started; outstanding photographs of your top five to ten products will typically enough.

Taking the images yourself is, of course, the cheapest choice. If this is your only choice, consider the following food photography advice:

  • Select a plain background: Nothing should take your attention away from your meal. A white plate on a bright backdrop is an excellent choice when in doubt.
  • Focus on the food: Sauce sides and garnishes are OK, but you don’t want silverware, wineglasses, or hands in the frame for your online ordering menu.
  • Use even lighting: Good lighting may help a meal seem more appealing. If you don’t have access to lighting, photograph your meal in natural light using parchment paper to soften the light (which any kitchen should have on hand).

You could be tempted to utilize stock photos if your menu is full of familiar comfort meals. Customers may be unhappy if your completed meal does not match the photograph, and you may get several complaints and refund requests. Your food photographs should resemble your final meals as closely as feasible, and they should appear as nice as possible.

Food photography is a service provided by several third-party platforms to its restaurant partners.

8. Choose an ordering, payment, and delivery strategy that works for you.

Third-party platforms, direct internal systems, or a hybrid approach are the three fundamental methods to take online orders and payments and deliver your meals. Extreme flexibility is one of the most appealing characteristics of a ghost kitchen company. You may start with one ordering and delivery strategy—for example, depending only on third-party platforms—and then switch to a different one as your company expands.

Signing up with third-party services like DoorDash, Grubhub, and Uber Eats for online ordering, payment, and delivery is the most basic option for nascent ghost restaurants. Your online orders are processed, payments are processed, delivery drivers are sent, and your part of the income is deposited into your company bank account. Third-party platforms, like many other small company solutions, offer advantages and disadvantages.

Subscribing to Third-Party Platforms

It’s simple to sign up for third-party sites, and the contracts aren’t exclusive. To increase their exposure, most ghost restaurants use a variety of third-party delivery services. Your ghost kitchen may be listed on any third-party site that works in your area. When you join up for DoorDash, Grubhub, Postmates, Uber Eats, Caviar, or another service, you’ll be asked to provide information about your business, such as hours and phone number, as well as your menu and, in some cases, menu images.

You’ll need the following items to speed up the sign-up process:

  • Your address, phone number, and email address are all required.
  • A PDF copy of your menu or a link to your menu on the internet
  • Information about your business’s bank account
  • EIN

To begin, go to the platform’s website and look for the “merchants” or “partner eateries” section. Let’s take a look at how most services’ registration sites work, using DoorDash as an example:

Screenshot of Doordash Homepage

To begin, go to the DoorDash site and go to the Partner sign up page. (Photo courtesy of DoorDash)

Screenshot of Doordash Plans

On the registration page, you’ll be asked to choose a plan: Basic, Plus, or Premier. (Photo courtesy of DoorDash)

Screenshot of Doordash Sign Up Step 2

Following your plan selection, you’ll be asked to choose your preferred hardware for receiving orders. (Photo courtesy of DoorDash)

Screenshot of Doordash Sign Up Step 3

After you’ve chosen your hardware, you’ll be asked to enter your menu, hours of operation, number of locations, and company type. (Photo courtesy of DoorDash)

Screenshot of Doordash Virtual Online Only

The company category for ghost kitchens should be “Virtual/Online Only.” (Photo courtesy of DoorDash)

Screenshot of Doordash Sign Up Step 4

You’ll next be prompted to enter your Information about your business’s bank account and confirm that you agree to DoorDash’s Terms and Conditions. (Image from DoorDash)

Screenshot of Doordash Merchant Portal Step 5

You’ll get an email with a link to your DoorDash Merchant portal after your sign-up is complete. (Photo courtesy of DoorDash)

Screenshot of Doordash Dashboard Detailed

You can see your sales, modify your menus and business hours, and explore other statistics through the Merchant site. (Photo courtesy of DoorDash)

Most third-party platforms expand at such a rapid pace that they are unable to keep an accurate record of all the ZIP codes they serve. Most of the time, you’ll need to start the sign-up procedure to determine whether the app is available in your location. When you input your company address, however, the system will usually notify you if its service is not accessible in your area.

Third-party services such as DoorDash and Grubhub have recently carved out different degrees of delivery service. Ghost restaurants may utilize such platforms just for online ordering and manage delivery themselves with an in-house driving crew. Alternatively, ghost restaurants that take online orders and payments via their own online ordering site might call in third-party drivers for a set fee each order. Some sign-up sites will also ask you about your delivery options.

Getting Direct Online Ordering and Delivery Up and Running

Getting Direct Online Ordering and Delivery Up and Running is more involved than signing up with third-party delivery platforms, but not by much. We’ll walk you through the process using Square Online. It is a good fit for ghost kitchens because it integrates with Square’s POS, includes online payment processing, and is free to use when you create a Square account. All you pay are the card processing fees. There are additional fees for delivery, which we’ll explore in detail below.

Screenshot of Square Log In

To begin, you’ll need to sign up for a Square account. (Image courtesy of Square)

Screenshot of Square Online Ordering Site Set Up

You may build your Square Online shop from your Square Dashboard after you have an account. (Image courtesy of Square)

Screenshot of Square Plan To Fulfill Orders

You may accept orders for pickup or delivery. (Image courtesy of Square)

Screenshot of Square Choosing Experience Works Best

You may make a simple shopping page or a fully functional website with an online store. The whole site is suggested if you don’t already have a website for your ghost kitchen. (Image courtesy of Square)

Screenshot of Square Allows You to Easily Add Content Blocks

You may simply add content blocks to your site using Square’s site designer, such as Instagram picture carousels and customer testimonials. (Image courtesy of Square)

Screenshot of Setting Up Domain on Square

Finally, you may pay a monthly membership fee to have a personalized domain or utilize a Square subdomain for free. (Image courtesy of Square)

Screenshot of Square Adding Site Items

The Square Dashboard is where you add goods to your Square Online shop. (Image courtesy of Square)

Screenshot of Square In House Delivery

You have the option of using on-demand third-party drivers or an in-house staff for delivery. Both arrangements are subject to fees. (Image courtesy of Square)

For delivery, Square offers two options: on-demand third-party delivery or in-house delivery. Square has direct integrations with DoorDash, Uber Eats, and Postmates for on-demand third-party delivery. Square charges $1.50 for each third-party delivery, with the platforms charging their own prices.

If you wish to manage a team of in-house drivers, Square also includes solutions for map-based driver dispatch. It costs Square also has tools for map-based driver dispatch if you want to manage a team of in-house drivers. The driver management tools cost $0.50 per order—which is nice because you only pay for what you use. If you upgrade to the Square for Restaurants POS, you can integrate with multiple third-party delivery platforms as well and receive all of your online orders on one central tablet. The baseline POS is free and has no long term contracts, so it’s a good fit for ghost kitchens. You can see more by visiting Square for Restaurants..50 per order to utilize the driver management tools, which is convenient since you only pay for what you use. You may also interface with different third-party delivery systems and receive all of your online orders on one central tablet if you upgrade to the Square for Restaurants POS. The basic POS is free and does not need long-term commitments, making it ideal for ghost kitchens. Visit Square for Restaurants for additional information.

9. Take into account additional software

You’ll get a tablet to accept orders from any third-party delivery network you operate with. You may be able to accept orders through your merchant portal on mobile devices that you already possess in certain situations. However, keep in mind that you’ll get a tablet for each platform you use. You’ll have three unique merchant portals and maybe three different tablets if you deal with three different platforms.

Operating several tablets for various delivery applications has acquired the moniker “tablet hell” in the business. In addition to clogging up your prep spaces, “tablet hell” has additional disadvantages. Other applications to support your company, monitor staff hours, keep track of inventory, or gather consumer data is not included on these platform-provided tablets. Adding a point-of-sale (POS) system to your ghost food enterprise will help it run more smoothly and prepare for expansion.

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You can avoid “tablet hell” by including a POS system into your ghost kitchen business. (Photo courtesy of Deliverect)

Your ghost kitchen may benefit from the following in addition to a POS:

Setting up different printers in your kitchen helps you keep orders organized if you have several prep sections and pick-up zones. You may set up a receipt printer to print adhesive labels with delivery information to enclose bags and configure printers to print hot and cold products at different locations.

KDS screens may be preferred over kitchen printers in busy kitchens. These displays may divide orders by prep area and color-code orders as they are finished. This makes it easier for everyone to stay on the same page. A KDS also provides searchable data points for gauging the efficiency of your kitchen operation, allowing you to rapidly spot areas for improvement.

Your ultimate objective will be to generate at least a percentage of your revenue from direct client orders; after all, 37% of guests prefer to purchase from the restaurant directly. You may utilize one of many excellent free-standing online ordering systems, or you can have an online ordering system incorporated into or linked with your POS system. In our assessment of restaurant online ordering software, we include a number of excellent solutions.

Working with third-party delivery applications means you won’t obtain any of that consumer data, in addition to the substantial disadvantage of paying hefty commission rates. Customer information is valuable in a ghost kitchen. It tells you where your most loyal clients are, how far your food travels, and whether or not repeat consumers purchase the same items or react to discounts and promotions. CRM solutions, like delivery management software, may not be something you need right away, but as your firm expands, you’ll want to add them. CRM functions are included in most restaurant POS systems.

Source Suppliers (nine)

Ghost kitchens rely on razor-thin profit margins and enormous sales volumes. To maintain your kitchen stocked with food, drinks, and takeaway containers, you’ll need to establish wholesale accounts with wholesale wholesalers. Because storage space in a ghost kitchen is limited, seek for providers that supply many times each week so that your refrigerators and freezers aren’t overworked.

You must consider how you will package each dish for travel in addition to the components on your menu. Will individual burgers come in different packaging than combo meals? Do you have a strategy in place to keep your French fries crisp and your soup hot? The slideshow below might help you get some ideas. We focused on eco-friendly solutions since 64 percent of respondents indicated it is vital for packaging to be recyclable, and 74 percent said they would pay extra for sustainable packaging.

Screenshot of Containers Segmented

Clamshells with segmented fiberboard are great for tacos, lobster rolls, salads, and entrees. (Photo courtesy of Worldc Centric)

Container Eco Flute Packaging

The ventilated cardboard clamshell keeps fried dishes crisp while in transit. (Photo courtesy of Novolex)

Burrown Hoagie Container

With a durable cardboard clamshell, you can travel hoagies and subs in perfect condition. (Image courtesy of Burrows)

Segmented Paper Container

This split cardboard container from Bio Tek is ideal for delivering entrees with sides. (Photo courtesy of Restaurantware)

Screenshot of Containers Salad Bowls

Salads and cold meals go well in clear bowls of different sizes. (Photo courtesy of World Centric)

Screenshot of Containers Cold Cups Fabri-Kal

The lids on these Fabri-Kal cold cups are the same size regardless of the cup size. (Photo courtesy of Fabri-Kal)

Screenshot of Containers Custom Printed

World Centric’s double-walled hot mugs may be custom printed with your company’s logo. (Photo courtesy of WorldCentric)

11. Recruit and Train Employees

During busy periods, your ghost kitchen will need at least a few staff members to keep up with the order flow. Although you may opt to self-deliver your meals, in which case you’ll also require delivery drivers, ghost kitchens typically feature mainly cooking workers. You may need to engage a chef to create your dishes, depending on your culinary skills. Most ghost kitchens, according to CloudKitchens, have a workforce of two to four people.

  • Using Ghost Kitchen Employees
  • Staffing a Ghost Kitchen

Restaurant staffing difficulties are well-known, yet recruiting restaurant employees is not impossible. You may improve your chances of getting a decent ghost kitchen crew by doing the following.

  • Creating a thorough job description: If you specify the talents and experience you’re seeking for in your job offering, you’ll receive more relevant applications.
  • Check local job ads to discover what comparable positions pay in your region and provide competitive wages. Offer a higher hourly wage if you can, and mention it in your job ad. Applicants anticipate pay information to be included in job postings in 74% of cases.
  • Posting the position on industry-specific sites: Using general employment sites like Indeed to reach a large number of applications is a good idea. Consider restaurant-specific employment sites like Culinary Agents and Poached if you require a specialist staff with food and beverage knowledge.

You’ll need to teach your employees how to prepare and wrap menu items for delivery. The quantity of training your team needs will be determined by the size and complexity of your menu, as well as the degree of expertise of your personnel.

Training may just take a few of days if you have a couple of experienced line cooks who are acquainted with your style of cooking. If your crew, on the other hand, has no prior cooking expertise, you should wait at least a week. Start with ServSafe’s food handlers’ training for a less experienced staff so that everyone is on the same page when it comes to food safety.

12. Promote your phantom kitchen

Third-party delivery platforms provide a variety of marketing techniques to help your restaurant stand out on their website. However, be sure to read the tiny print of these marketing partnerships. A larger commission rate is sometimes associated with preferential marketing positioning that displays your restaurant above competitors selling comparable dishes or provides free delivery. These marketing tiers are a great method to reach out to new clients, but be sure the pricing and contract term are appropriate for your company.

You can also use social media to promote your ghost kitchen. Instagram and Facebook attract a large number of food influencers and attract a large number of foodies. At the very least, your company should have profiles on Facebook and Instagram. You may buy advertising on both sites, establish maximum ad budgets, and target visitors in your city who are interested in your sort of food. You may incorporate direct links to your online buying site on your accounts and even individual posts to increase sales. To increase your ghost kitchen’s exposure, consider providing a complimentary lunch to local food Instagrammers.

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Adding shoppable link stickers to your Instagram stories is a terrific method to increase sales. (Image courtesy of Toast)

13. Activate your account!

You’re ready to start taking orders now that your menu, logo, and personnel are in place! Don’t be disheartened if the first few days or weeks go slowly. It might take a few weeks before you start seeing sales. Create some social media advertising and engage with local culinary influencers on Instagram in your spare time to assist boost future orders.

As your orders begin to arrive, keep an eye on what’s selling and ask for comments from your customers. The adaptability of a ghost kitchen is one of its most alluring features. If anything isn’t functioning, you may simply change your menu or pivot your business. Be adaptable, and be ready to introduce new ideas to your kitchen if customer preferences shift or you come up with a new menu idea. You’ve already put in the effort, so adding your next idea will be a breeze.

Frequently Asked Questions about the Ghost Kitchen (FAQs)

Is it Legal for Me to Open a Ghost Kitchen in My Home?

Operating a restaurant of any type from your home is banned in 48 states. Local regulations often ban home restaurants from utilizing third-party delivery drivers, even in states where micro-enterprise home kitchen operations (MEHKOs) are lawful. If you reside in a county that permits MEHKOs, however, there is typically nothing stopping you from delivering food from a home-based restaurant yourself or providing it for takeout. There are presently no other states that offer a legal means for chefs to run home-based restaurants, while numerous states are considering legislation.

Do Ghost Kitchens Always Use DoorDash or Other Third-Party Delivery Platforms?

Although most ghost kitchens do, they are not required to use third-party services. Some ghost kitchens are self-contained, depending on social media promotion to attract clients to their own online ordering platform. Because this is a time-consuming method, most ghost restaurants start on third-party platforms and then construct their own online ordering and delivery systems afterwards. iEight Sushi is an example of a ghost kitchen that went the other way: it began with its own order and delivery streams but now uses Grubhub for delivery.

Is it a Scam to Buy a Virtual Franchise?

If you operate a restaurant, you may be getting phone calls, emails, and Facebook advertising from organizations promising you a “turn-key” virtual brand that you can manage from your existing kitchen. The virtual franchise business idea is entirely legal, and it may be a lucrative side business for your restaurant.

Virtual restaurant ideas are developed by companies like Future Foods, Nextbite, Virtual Dining Concepts, and The Local Culinary, often in collaboration with influencers or public personalities, and pitched to existing restaurants as add-on businesses. Franchisee kitchens get recipes, training, and branded packaging from the virtual restaurant brand, allowing ideas like Mario’s Tortas Lopez, Pauly D’s Italian Subs, and HotBox by Wiz Khalifa to expand throughout the nation. A virtual franchise might be a low-risk approach to test the ghost kitchen idea if you have the people and the space.

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Celebrities routinely promote virtual companies, increasing their prominence. (Photo courtesy of Mario Torta’s Lopez)


Conclusion

Ghost kitchens are a fun and inexpensive way to get into the restaurant business. Virtual restaurants need a minimal workforce, around half the licenses, and 10% of the cash that a regular brick-and-mortar restaurant requires. The easiest method to keep your ghost kitchen viable is to employ third-party delivery platforms’ technologies to expand your own in-house ordering and delivery streams while also logging customer data to help you grow your business.

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The “ghost kitchen calculator” is a tool that allows users to calculate how much they will spend on their ghost kitchen. The tool takes into account the size of the room, appliances, and other factors.

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