How to Maximise Profits with Dark Kitchens
Do you own a hospitality business or are you a manager looking to make recommendations to your directors to increase revenue? If you own or manage a restaurant, café, bar, pub or hotel, dark kitchens are great way to add a supplementary income into your business.
Also known as ghost kitchens, cloud kitchens or virtual concepts, dark kitchens refer to a menu that is prepared in an existing restaurant or kitchen but only sold through a delivery service. If you have ever ordered a takeaway for delivery and can’t find the location of the restaurant, you have probably already ordered from a dark kitchen.
Dark Kitchen During Coronavirus
COVID-19 is having a terrible impact on the hospitality sector, but, as any entrepreneur will tell you the key to success during difficult times is to adapt. With the unknown uncertainty of lockdown restrictions, no business should rely on footfall as their main source of revenue. You need to take the time to revisit your business model and ensure your customer offering is flexible. This means customers should be able to order online, by app, delivery, in-store, and for collection.
Optimising space and equipment, maximising revenue
You already have a kitchen, equipment, staff and the experience so why not utilise this? The delivery will be taken care of by third parties such as Deliveroo, Just Eat or Uber Eats. This is a chance for you to maximise profit with the resources you already have in place. If you’re delivering from a hotel kitchen or from a restaurant that is quiet between lunch and dinner, dark kitchens will also help you optimise quieter times without an increase in operational costs or labour.
But I don’t want to pay third parties a commission fee? My advice is that you should look at this fee as part of your marketing budget. As you will utilise existing resources, try not to look at this fee as having the same impact on your margins as you would for your main concept.
Who wants the same takeaway all the time? According to research, in the UK the average consumer spends £451.00 a year on takeaway. Dark kitchens are a great way to offer a variety of cuisines for your consumers to keep them coming back for more.
Providers like Deliveroo are now an over saturated market with delivery options since the first lockdown. Dark kitchens are a great way to increase your market share on the platform, making your chances of being chosen for that Friday night takeaway more likely!
Operations consultancy services to help you create new dark kitchens
So how do you create a dark kitchen? The best way to do this is to ensure it is cost-effective. This means considering your existing equipment and ingredients. After all, this is only a supplementary income so it isn’t wise to invest any capital. You will need experience in marketing as it isn’t easy to get consumers to buy from an unknown brand. A strong logo and an effective marketing strategy will be required to take your concept to market successfully.
At Laura Anne Hospitality Consultant Ltd I offer operational consultancy services to help you conceive a successful brand, develop a menu and bring your concept to life. If you would like more information contact me for a free 30 minute consultation.