‘Ghost restaurants’ cater to food-delivery trend
The popularity of apps such as Uber Eats is shaking up the hospitality property sector.
Food delivery apps such as Uber Eats are starting to drive a change in the food and beverage property sector, leading to ‘‘ghost restaurants’’, an estate agent says.
Bayleys head of retail Chris Beasleigh said restaurants used to have a ‘‘foolproof safeguard’’ against the online work because customers had to physically visit them to enjoy their offerings.
But now, food delivery businesses were forcing restaurants to rethink their space and offering, as millennials opted for the easier option, he said.
As the apps increased in popularity, food and beverage providers’ property requirements would begin to change, in terms of location and capacity for pick-up services, he said.
‘‘Operators will increasingly need to factor in food delivery services when making leasing decisions. Properties that have good street frontage to attract customers and can accommodate parking for delivery bikes and cars will be in demand.’’
The apps would also increase development options for secondary space close to major arterial routes, as digitally-savvy operators looked to establish ‘‘ghost restaurants’’, he said.
‘‘Ghost restaurants’’ were kitchens set up solely to service delivery customers, and do not have tables and chairs to eat inhouse. ‘‘Ghost restaurants allow operators to run a viable business with a minimal footprint,’’ Beasleigh said.
Some operators could also decide they did not need prime real estate to capture business any more, he said.
Staying on the radar
First Retail Group managing director Chris Wilkinson said fooddelivery businesses had transformed consumer behaviour and expectations.
‘‘Food operators, particularly quick-service restaurants and takeaways, [now] need to have a delivery solution, either provided by a third-party service or managed by themselves,’’ he said.
‘‘Restaurants are using the likes of Uber Eats as a way to stay on the radar in their marketplace.
‘‘For most, it’s about profile, especially given the margins home-delivery operators charge, which does challenge profitability for many restaurants whose operational costs are already high.’’
Food delivery businesses were unlikely to change the property requirements of restaurants at the upper end of the market, Wilkinson said.
‘‘Quality restaurants can rest easy, as Uber Eats is unlikely to change the needs and expectations of their customer base. Their property needs will likely remain unchanged. For them, high-profile locations still have the power to create awareness and stimulate walk-in custom.’’
Beasleigh said the opportunity to capture food delivery sales should be at the forefront of restaurateurs’ property requirements.
‘‘Operators could risk losing out on a growing revenue stream if the location of their business is not within 30 minutes’ drive of their target market, or in areas not covered by delivery services such as Uber Eats.
‘‘This could lead to a clustering of food and beverage businesses in high-custom locations that offer easy access to motorways and major arterial routes,’’ he said.
‘‘Partnering with food delivery companies is a way for restaurant businesses to diversify their revenue streams, and, ultimately, make more money, which is better for landlords and investors.’’
Overseas developments
Wilkinson said some overseas food and beverage providers had already changed the way they catered to customers, by leasing additional property space to service the online ordering market.
In Australia, some of the popular restaurants have created dedicated facilities entirely for pick-up services, he said.
‘‘This is to ensure their existing operations and goodwill are not compromised.’’
Meanwhile, in the United States, some of the big fast-food operators’ best-performing stores have little walk-in traffic as consumers shift towards online ordering, Wilkinson said.
‘‘For those that do, it’s increasingly a transactionless pick-up as customers come in once to collect their food after ordering and paying online.
‘‘These are examples of stores near large university campuses, demonstrating how one demographic’s purchasing behaviour can change seismically.’’