Ghost Kitchens in the Post-Pandemic Era – Trend Analysis
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Ghost Kitchens in the Post-Pandemic Era Report Overview
The pandemic encouraged brands to explore delivery-only concepts such as ghost kitchens. A kitchen setup wherein a single restaurant prepares various cuisines or multiple virtual restaurants share a kitchen is known as host kitchen.
Dine-in channel continues to have the largest market share in the food service sector. However, the demand for home deliveries has increased significantly as well. Food service providers need to understand key markets for takeaway channel growth to help ghost kitchens foster success. For instance, demand for takeaway delivery for QSRs is predicted to remarkably increase in Asia in the coming years. Therefore, food service providers must make long-term investments in ghost kitchens. This will widen their target consumers in a niche channel market compared to the crowded dine-in restaurant market.
Global: OSP Value for QSR Delivery Takeaway, 2023
Buy the Full Report for More Insights on Ghost Kitchens in the Post-Pandemic Era
The “Ghost Kitchens in the Post-Pandemic Era” research report is part of the GlobalData Case Study report series, which analyzes trends explored on GlobalData’s TrendSights Map. The consumer insight offered throughout the report is drawn from GlobalData’s Q1 2023 and Q4 2022 global consumer survey, a quarterly survey designed to capture consumer sentiment as it evolves throughout the year. The report will help you understand the challenges and opportunities for food service brands to tap into the ghost kitchen trend in the post-pandemic era. It also helps in gaining insights into how competitors are responding to this trend.
Key Drivers | · Demand For Convenience
· Affordable Operation Costs · Sustainability · Adoption of Hybrid Lifestyles |
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Ghost Kitchens in the Post-Pandemic Era - Drivers
Consumer demand for convenience, affordable operation costs, sustainability, and adoption of hybrid lifestyles are a few of the key factors driving ghost kitchen market growth.
Affordable operation costs – Ghost kitchens can be money-savers for food service providers, as the service closely monitors delivery activity and competitor pricing. Businesses such as host kitchens regularly give suggestions to partner restaurants on price and brand positioning. In addition to saving money on staff and rent space, brand consultancy adds to the brand proposition.
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Ghost Kitchens in the Post-Pandemic Era - Trends in Action
Restaurants continue to use formulation and technology-based strategies to encourage consumers to dine out or choose takeaway options. For instance, in July 2023, host kitchen Franklin Junction announced a partnership with Dine Brands International. The alliance aims to expand the restaurant presence of IHOP, Applebee’s, and Fuzzy’s Taco Shop in Japan. The host kitchen’s data-driven insights will help the brand’s customization and localization strategy. The expansion is also set to continue in the Netherlands, France, and Belgium.
The above demonstrates the importance of using data-driven insights to micro-target consumer groups by adapting its local menu to consumer tastes. Tracking methods such as these can help international restaurant chains, including Applebee’s enter new markets.
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Scope
This report is part of the GlobalData Case Study report series, which analyzes trends explored on GlobalData’s TrendSights Map. The consumer insight offered throughout the report is drawn from GlobalData’s Q1 2023 and Q4 2022 global consumer survey, a quarterly survey designed to capture consumer sentiment as it evolves throughout the year.
Key Highlights
- The virtual restaurant bubble proceeded to grow during global pandemic lockdowns when consumer demand for convenience was at an all-time high.
- Although consumers in urban areas were working from home more often, they still had fast-paced lifestyles.
- Despite times of high inflation, a notable proportion of younger consumers spend highly on delivery. Delivery-only enterprises such as ghost kitchens have an opportunity to thrive if they effectively micro-target the younger, high-spending consumer groups.
Reasons to Buy
- Understand the challenges and opportunities for foodservice brands in order to tap into the ghost kitchen trend in the post-pandemic era.
- Gain insight into how competitors are responding to this trend.
- Access valuable strategic take-outs to help direct future decision-making and inform new product and service development
MrBeast
Rebel Foods
Franklin Junction
Dine Brands
Chipotle
Wendy's
Oomi Kitchen
KLC Virtual Restaurants
Clone
Table of Contents
Frequently asked questions
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What is a host kitchen?
A kitchen setup, where a single restaurant prepares or where multiple virtual restaurants share a kitchen is known as a host kitchen.
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What are the key factors driving the ghost kitchen growth?
Consumer demand for convenience, affordable operation costs, sustainability, and adoption of hybrid lifestyles are a few of the key factors driving ghost kitchen growth.
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Why are restaurants using formulation and technology-based strategies?
Restaurants continue to use formulation and technology-based strategies to encourage consumers to dine out or choose takeaway options.
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