Virtual kitchen

Undeniably, the pandemic has changed some of our habits a bit. For instance, at the height of the pandemic, instead of having weekly dine outs with our families, we opted to either cook or go for home deliveries. Certainly, it was globally felt or experienced. Clearly, therefore, restaurant business was one of those badly hit.

In the USA, as the pandemic was at its peak, a restaurant booking platform, Seated, stood out. In trying to support its restaurant partners, it went beyond providing reservations to “in-restaurant” diners. It launched Seated at Home, a takeout service and competed against the likes of Grubhub and UberEats, with 0% commission on orders. Just helping restaurants make use of their underutilized kitchen.

Indeed, we must accept the fact that with the changing demographics, preferences have shifted enormously. For one, there are more millennials now than baby boomers. Obviously, therefore, preferences have shifted. This shift is well validated by the Great Resignation that is felt globally. To recall, as the millennials

embraced work-from-home arrangements during the pandemic, when employers demanded for their physical presence as it eased, they refused and preferred to resign.

Indeed, with a perpetually shifting consumer base and preferences, business models have changed as well. As basic as food, the approaches have shifted too. Riding on the enormous popularity of online ordering and quick delivery, “virtual kitchens” or “ghost kitchens” are gaining immense popularity.

How does it work? A virtual kitchen (also known as ghost kitchen), is “a restaurant that eliminates the eat-in option for diners and focuses purely on off-premise sales channels.” It simply “operates as delivery only, with some offering takeout options.” Therefore, to those who have the itch for entrepreneurship, they can even use their kitchen at home for a start. That easy. Hence, they can eliminate some fixed costs like rental and can also reduce labor costs as hires are limited to kitchen personnel only.

As usual, patrons can simply order from the virtual kitchens through their websites, apps or phones. Or, through third-party delivery apps.

Traditional restaurants can do this too. If “in person” dine-ins are coming in trickles, they can always maximize their kitchens by adopting the same business model.

Of course, we already know that some of our restaurants in the country are already adopting this business model. It is obvious too that competition among “virtual kitchen” players are becoming so stiff by the day. Therefore, the need to be different comes into play. In the USA, Saltalk, a virtual kitchen and e-commerce platform, has continued to “develop its one-two punch of authentic cuisine, made by both restaurant chefs and home cooks, supply resources and logistics.”

What makes Saltalk different? In them, the entire process is worry-free, easy and assuring. Simply put, satisfaction is guaranteed. First, Saltalk carries many brands. Therefore, they can accommodate everything a customer needs. Secondly, to the health conscious, “all ingredients, allergies, calories are also listed out in the dish labels.” Thirdly, it offers “Free, On-Time, and Safe Delivery on orders at a certain minimum purchase without hidden fees, delivered in the tamper-proof packing” at 20% lower in price when compared to the other platforms. Fourthly, it offers “same-day and pre-order deliveries up to two weeks in advance.” More importantly, the customer receives a US$5 voucher if the delivery is delayed by 15 minutes. Finally, it has a “review portal that easily handles unsatisfied orders.” If someone is unsatisfied, he can always request for a refund through the portal. Clearly, therefore, satisfaction is guaranteed.

Certainly, the rise of virtual brands (whether on fashion or food) is right on trend with the growing popularity of delivery. Moreover, a continually shifting consumer base and high competition have always driven the food sector to pursue new ways of doing business. Notably, the global food delivery is expected to reach $164 billion dollars by 2024. This figure will simply rise as the number of digital natives (generations beyond the millennials) continue to grow.

Let’s face it, the millennials and the future generations will all be digital natives, therefore technology-driven businesses will have higher chances of success. If replicated in the country, it will surely help restaurateurs remain in business. Not only that, more would-be “virtual kitchen” operators will dare to get into the mix.