What do you guys think about this new trend of ghost kitchens or cloud kitchens? Looks like a lot of new investment is pouring in this area. Is this the next big thing or just a fad? Do you order online frequently? TC: 230 YOE:8
It makes sense for existing big chains like chic-fil-A that are already operating at 2X their capacity and demand outpaces supply - for smaller players - demand wouldn’t be enough to justify cost to run it
What do you do at Siemens?
Magic😀
Ugh
Yes it makes sense: 1. Cloud kitchens can use cheaper real estate in harder to access non-walkable areas 2. More efficient to specialize just in online delivery 3. Several restaurant brands can share same kitchen so lower costs. Makes it easier to experiment in creating new virtual restaurants/brand.
Yes, that part of business makes sense. What about the cost of food after everyone takes their cut? Do you think it will be same, cheaper or more expensive? Will the consumer accept the cost if it is more expensive? I have noticed my Uber Eats take out has become more expensive and it seems Uber is still losing money in that business.
I think cloud kitchens will price out regular restaurants for the delivery use case - the cost savings are significant. I see the model working very well
Travis is working on a cloud kitchen, AFAIK. Will that make it a big thing ?
It is already big in countries with a large population: Deliveroo- Europe Swiggy- India Panda Selected- China In US we have CloudKitchens and Kitchen United. These are just a few that I know of.
It’s real and legit. Best company that will prevail is Virtual Kitchen Co.
Huge potential, ghost kitchens as a category will dominate food delivery - and covid is a tailwind for their business model https://coolertalk.substack.com/p/food
Doesn’t it seem like an efficient way of doing it
It does. But running a successful business that scales is hard. I am assuming this is a game of small margins.
I would think that the $ would be in volume.