How Co-Kitchen Spaces Can Grow Your Food Delivery Business
If you haven’t heard of co-kitchen spaces, then you should probably know it’s the next big thing in the food delivery business. Evolving from cloud kitchen, ghost kitchen, virtual restaurant, or delivery-only restaurant; as the name suggests, the concept operates online, reducing the cost of setting up a restaurant while spiking the demand on food delivery.
Co-kitchen spaces help restaurants excel
The rental costs of restaurants and the expenses of their operation and setting up have forced many brick-and-mortar restaurants to shut down. A study shows that restaurant rentals may cost up to 25% of a restaurant’s revenue!
Co-kitchen spaces are known by many as shared kitchen spaces or commissary kitchens. By definition, co-kitchen spaces are centralized, licensed, commercial food production facilities where several restaurants could rent space to prepare delivery-optimized menu items. The spaces are equipped with infrastructure, kitchenware, and utilities such as freezers, stoves, etc. needed for running a delivery-only restaurant business.
The flexibility of the rental plans of co-kitchen spaces gives them an edge over traditional restaurants. When you hire the area, you only pay for the expenses of kitchen use for a certain period, thus, cutting down on fixed monthly rentals, staffing, and equipment expenses by almost 30%.
Co-kitchen spaces contribute to the long-term success of restaurants
Here are four reasons why co-kitchen spaces could be beneficial for your restaurant business in the long run:
1. Cost optimization
Co-kitchen spaces are equipped to run food production on a large restaurant scale, including all the required kitchenware and tools for operation. The cost of buying them is, hence, optimized.
Within only a month, you’ll find yourself starting to make a profit and penetrating the business market faster than you’d expected.
2. Easier market entry
For start-ups and entrepreneurs wishing to kick off a smaller food-delivery restaurant business, co-kitchen spaces are the perfect place to start. Also known as kitchen incubators, such businesses are given a chance to experiment and grow on a limited budget while making use of a fully-equipped kitchen.
The hassle of obtaining licenses and permits is greatly cut down with co-kitchen spaces. Besides, sharing experiences with fellow restaurant owners is an advantage that comes along with sharing kitchen spaces in the same building.
3. Increased order volume
Typically, co-kitchen spaces are located in busy areas where there is high demand for food delivery. These areas could be residential, commercial, or both. Hence, creating an opportunity to serve a larger market and cater to the specific food preferences of its customers.
Many delivery-only restaurants resort to online food ordering systems to organize their operations and reach more customers. Check out Taker for more details.
4. Efficient food delivery
As mentioned above, sharing kitchen spaces is a major contributing factor in business growth and increasing order volume. Considering that there is no dining-in option, it is easier for delivery services to pick up orders once they’re ready to go.
The more orders are out for delivery, the less the delivery cost is which ultimately optimizes the overall cost for co-kitchen spaces.
